The coin is on the verge of losing 382 descending Fibonacci and 618 ascending #Fibonacci . Both levels provided excellent support and attracted the asset towards themselves, however, during a protracted trade, the seller wins due to numerous factors. The moving averages formed a death cross, thereby creating an extremely precarious position for the asset, since with a probability of over 70% the asset will continue to adjust and break the main support level of the local trend at $1.8765.
We are in the configuration of a bearish triangle and trading within it. The buyer made several attempts to break through, but all of them ended negatively. Within the #downward movement, we aren’t seeing any buying or other other abnormal activities indicating a reversal, which leads to certain thoughts.
The buyer needs to hold the $1.8540 area, as leaving below will lead to a gap (void) and subsequently to a 20% correction. At the bottom, we are saved by 236 descending and 786 ascending ones, and their loss will lead to the complete annihilation of the bullish trend as such. The volumes in the asset are at a high level, but the Volume Delta indicator signals a negative delta (the difference between buying pressure and selling pressure).
The Choppiness Index (CHOP) has almost reached 80 points - a high level of trend roughness. Probably in the near future, the indicator values will begin to adjust and volatility will appear in the asset. The seller has repeatedly formed bearish engulfing configurations, which adds points towards a bearish movement.
The result is that the buyer needs to make efforts to get back over 382 descending and 618 ascending Fibonacci and continue the upward movement. It is enough for the seller to break through the $1.8785 level and lower us into the gap area.
