Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion.
Bitcoin [BTC] fell under the $20k mark and over the previous couple of days, noticed a minor bounce to the $21.4k mark. However, on decrease timeframes, the $21.5k and the $22.2k ranges are essential resistances to the value.
Even although Bitcoin rallied from $19.4k to $24.1k inside per week, the bigger timeframe bias remained bearish. This was not the case for MATIC, which retested a resistance zone from May as demand. Could Polygon [MATIC] climb larger from this space or would Bitcoin spoil the social gathering?
MATIC- 12-Hour Chart
On the 12-hour chart, the image was fairly bullish for MATIC. The market construction had been bearish until mid-June however in July MATIC was in a position to break previous the earlier decrease excessive.
This construction break meant the bias was bullish, and after the $0.56 stage was flipped to help, MATIC rocketed to the $0.97 mark earlier than beating a retreat.
Overall, the chart screamed of a low-risk, comparatively high-reward shopping for alternative. As all the time, the king of crypto was Bitcoin, and a promoting wave behind BTC might undo the Polygon bulls’ plans.
MATIC- 4-Hour Chart
On the four-hour chart as effectively, not many components supported the bearish bias. The one robust proof for a decrease timeframe transfer downward was the break beneath the $0.8 help stage which occurred final week.
At the time of writing, the value retested the identical stage as resistance, as evidenced by the 2 bearish Supertrend indicators on the value chart.
The $0.74 help stage has held on this check, however did the momentum and commerce quantity favor the bulls?
The four-hour Relative Strength Index (RSI) retested the impartial 50 stage as resistance over the previous couple of days, which was an indication that momentum favored the bears. The Supertrend indicators additionally flashed a promote sign.
The Stochastic RSI approached overbought territory. A bearish crossover above 80 could possibly be an early signal of a transfer decrease for MATIC within the coming days.
The A/D has additionally dipped over the previous week. In latest hours of buying and selling, the A/D reached an early July help stage. A transfer under this line might sign bearish dominance as effectively.
Polygon’s native token MATIC had a powerful bullish bias on larger timeframe charts. Higher timeframes usually provide extra dependable data on a development however on this occasion, the weak point of Bitcoin meant that purchasing MATIC may not be a worthwhile buying and selling resolution.
Instead, ready for a bearish retest of the $0.74 mark to brief the asset could possibly be the route within the subsequent week or two, particularly if Bitcoin was unable to carry on to the $20.1k help.