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Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion.
Bitcoin [BTC] fell beneath the $20k mark and over the previous couple of days, noticed a minor bounce to the $21.4k mark. Nonetheless, on decrease timeframes, the $21.5k and the $22.2k ranges are essential resistances to the worth.
Despite the fact that 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 Might as demand. May Polygon [MATIC] climb greater from this space or would Bitcoin spoil the get together?
MATIC- 12-Hour Chart
Supply: MATIC/USDT on TradingView
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 capable of break previous the earlier decrease excessive.
This construction break meant the bias was bullish, and after the $0.56 stage was flipped to assist, MATIC rocketed to the $0.97 mark earlier than beating a retreat.
General, the chart screamed of a low-risk, comparatively high-reward shopping for alternative. As at all times, the king of crypto was Bitcoin, and a promoting wave behind BTC may undo the Polygon bulls’ plans.
MATIC- 4-Hour Chart
Supply: MATIC/USDT on TradingView
On the four-hour chart as properly, not many components supported the bearish bias. The one robust proof for a decrease timeframe transfer downward was the break beneath the $0.8 assist stage which occurred final week.
On the time of writing, the worth retested the identical stage as resistance, as evidenced by the 2 bearish Supertrend indicators on the worth chart.
The $0.74 assist stage has held on this take a look at, however did the momentum and commerce quantity favor the bulls?
Supply: MATIC/USDT on TradingView
The four-hour Relative Energy 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 might 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 current hours of buying and selling, the A/D reached an early July assist stage. A transfer beneath this line may sign bearish dominance as properly.
Conclusion
Polygon’s native token MATIC had a robust bullish bias on greater timeframe charts. Increased timeframes usually supply extra dependable data on a development however on this occasion, the weak point of Bitcoin meant that purchasing MATIC won’t be a worthwhile buying and selling resolution.
As an alternative, ready for a bearish retest of the $0.74 mark to quick the asset might be the route within the subsequent week or two, particularly if Bitcoin was unable to carry on to the $20.1k assist.
