• Mon. May 20th, 2024

THETA Offers ‘Buy’ Opportunity Following a Retracement

OnZine Articles

ByOnZine Articles

Jul 30, 2022

June sessions saw Bitcoin forming a low at $17.8K on its charts. In July, the bellwether crypto mimicked that development, printing a higher low near $18.7K. Bitcoin continued to form higher lows within the previous month. Meanwhile, the crypto overpowered the barrier at $22K early this month. That broke the medium-term bearish market structure, opening the road for Bitcoin to rally. Theta Network’s altcoin has hovered inside a range as BTC climbed higher. Nevertheless, THETA revealed bullish intents within the past few weeks, as it climbed past $1.3.

THETA 1Day Timeframe

The daily chart confirms THETA exhibited massive bearishness, especially in April-May. The price formed an accumulation setup (rectangle bottom) from $1.06 to 41.51 in June-July. This range has a midpoint at $1.29.

The altcoin respected the range setup’s lows and highs as support and resistance since mid-May. Also, the range’s mid-point has served as critical resistance on various occasions. Thus, a mid-range level retest might present a lucrative ‘buy’ opportunity targeting the $1.5 – $1.55 level.

THETA 4Hr Timeframe

The 4hr chart shows THETA recorded a wild uptick to $1,45 from $1,15 within the last few days before a swift rejection at the latest trading session during this publication. THETA exhibited a bullish picture at this timeframe. Moreover, it targeted the $1.5 range highs.

Remember, an impressive portion of this action has already happened. Yet, investors can still access profitable THETA traders within the coming days. The entire value area between $1.35 and $1.3 might serve as support. Thus, traders can enter a somehow low-risk long trade upon pullback, placing a stop-loss under the $1.23 – $1.25 region.

The MA seemed primed to create a bullish cross. The 21-Simple Moving Average stayed below the 55-Simple Moving Average while hiking on the chart. Meanwhile, the Relative Strength Index hit the overbought region when THETA approached the $1.45 – $1.5 resistance. That forced pullbacks but wasn’t enough to halt the buying momentum.

The Chaikin Money Flow stayed well past the +0.05 mark, indicating massive capital flow into the marketplace. Also, the OBV surged over the last week. Also, it formed higher lows with the price over the previous three weeks. That confirmed stable demand in THETA’s surge from $1.

Final Thought

Volume indicators suggested impressive buying momentum behind THETA’s massive surge. Moreover, market strength favored bulls. Traders can monitor $1.35 – $1.3 to execute long positions, eyeing a move toward $1.5. A Bitcoin move past $24.5 to the resistance at $26K will support THETA’s surge to $1.6.

OnZine Articles

OnZine Articles

OnZine Articles main author - Max Haydon

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