Good day Hiveians!
Join me in analyzing the crypto markets!
Hive/BTC chart is once again at a crossroads
Almost 2 months ago I argued that "something big was about to happen" in this chart. Amazingly, we had exactly the reaction I expected,but it was unfortunately just a "fake out". I highlighted the fact that Hive's 3 wave movement had been completed and since price was hovering around critical support back then as well, I suspected a larger move incoming.
Just 4 days after the post Hive jumped by almost 30% up. For a brief time it looked as if Hive's downward movement had been completed and a new and larger impulse wave had started:
But as you can see, this didn't last long. Price actually moved downwards just after and found new support a bit further down. It then tried to get above the former support, but it had returned into a resistance. This is more evident in the weekly chart:
This does not look too good: if the former support has returned into a resistance and price has been rejected 3 times already, it looks like the price of Hive could head further down relative to BTC.
Honestly, this does not look good from a TA perspective. The current support is very weak and it looks like Hive is going to take a dip. If so, there is some new support at the trend line indicated below:
But worse, Hive could be stuck in a downward movement for the foreseeable future. In order for that not to happen, price would have to move upwards now (tomorrow is an important weekyl close) and break through the big resistance which it has so far failed to break out from.
Fingers crossed, that somehow Hive makes a comeback (we are overdue for a bigger pump, but lately they have always dumped back under the base of the pump). If not, Hive will continue to under perform for at least the rest of 2023. But I'll leave you with a silver lining. On the monthly chart we are seeing a falling wedge which is known for positive price action. But again, price would have to stay above the critical support observed currently.
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
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