Avalanche on the verge of breaking its current structure, should you short?

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

Bitcoin fell to $21.4k in recent hours of trading. This miniature sell-off forced Avalanche to $17.78 to $17.08, and more losses could follow.

Well, the king coin still has some support extending to $21.2k, but a daily session close below $21.6k could start the next leg downward.

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If that happens, a large portion of the rally in January could see a retracement throughout February. Below $16.8, $15.8 and $14.2 are levels of support for AVAX. Whether the asset can bounce from $16.8 or fall lower is likely to depend on Bitcoin’s defense of the $21.6k area.

Source: AVAX/USDT on TradingView

Avalanche retraced southward in early February to fill the fair value gap it left, highlighted in white. It set a higher low and surged to reach the resistance at $22.42.

During this move upward, the RSI made lower highs while the price made higher highs. The bearish divergence played out in recent days and the price broke the market structure to bearish on lower timeframes.

A daily timeframe flip would occur on a session close below $16.8. However, trading volume has been falling in the past few days alongside the drop in prices. This suggested that selling pressure was not immense, and hinted at chances of a recovery upward.

How much are 1, 10, 100 AVAX worth?

While the RSI fell below neutral 50 to stand at 34, the OBV did not show such a sharp drop. Therefore the momentum was firmly bearish, but the volume sold wasn’t high enough to warrant the beginning of another downtrend.

Source: Coinalyze

In the 1-hour timeframe, data showed Open