After Bitcoin tested support below $40,000, it rebounded, sparking a recovery among altcoins. Investors bought the dip during this week’s decline, but Bitcoin’s recovery is uncertain without reclaiming the $40,400 support level. The key levels for AVAX investors to watch are now in focus.
BTC and altcoins saw their 2024 peak amid ETF excitement, followed by a massive sell-off on January 12. Large investors capitalized on the sell-off from satisfactory levels, causing a swift market turnaround. AVAX dropped to $27.21 before bouncing back and is now trading above $30.
The RSI is relaxing above the neutral zone, yet no clear bearish trend is established. Crypto analyst MTI Trading believes the price is nearing the bottom, suggesting a potential entry point for a bull run, but advises waiting for the next buy signal for added safety.
Another analyst, Wolf Of Altcoins, predicts a tenfold increase during this bull run. Daily chart readings do not provide a clear direction for the trend, but some metrics offer hope for reaching the bottom. AVAX has fallen into a descending parallel channel since December 2023’s high, typically indicative of price corrections.
A recent bounce from the channel’s mid-line supports the formation of a bottom according to Elliott Wave theory, suggesting AVAX is in the final phase of an A-B-C correction pattern. If AVAX breaks out of the channel, it could see a 35% increase to the nearest support at $42. However, a close below the recent low of $27.2 could reverse this outlook and set a target of $22.65.
