Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion
- The $4 mark was an vital stage of help that was misplaced final week
- Filecoin traded simply above one other psychological stage at $3 however may face extra bearish strain quickly
The core CPI information from the US Labor Division final week noticed a transfer upward to $18k for Bitcoin, however these beneficial properties had been shortly worn out. Inventory market indices akin to S&P 500 posted losses final week and had been prone to proceed trending decrease this week.
Filecoin suffered from intense promoting strain and registered massive losses on the worth charts.
Learn Filecoin’s [FIL] Price Prediction 2023-24
If Bitcoin can push previous the $17k mark as soon as extra, there might be probabilities of a small rally throughout the market. Nonetheless, endurance was vital. Buying and selling on 19 December would doubtless make clear the momentum for property within the coming week.
The $4 help was damaged decisively, bears euphoric
Supply: FIL/USDT on TradingView
A set of Fibonacci retracement and extension ranges (yellow) was plotted primarily based on FIL’s transfer from $6.56 to $4 in early November’s crash. From 10 November to 16 December, Filecoin shaped a spread between $4.07 and $4.6.
On 14 December, FIL retested the $4.38 area as resistance and fell practically 30% to achieve $3. Previously couple of days, volatility and buying and selling quantity have been low.
The Fibonacci extension ranges introduced $2.72 and $2.41 as bearish targets additional south. In the meantime, the 23.6% extension stage at $3.39 was virtually retested as resistance. The Relative Energy Index (RSI) was strongly bearish and remained in oversold territory over the previous couple of days.
A bearish divergence close to a decrease timeframe important stage can supply merchants a chance to scalp. The Chaikin Cash Stream (CMF) weakly climbed in current days however regarded to dive beneath -0.05 as soon as extra to point heavy promoting strain.
A transfer beneath $3 may see Filecoin drop to $1.44 within the coming weeks, the 100% Fibonacci extension stage primarily based on the aforementioned drop from $6.56.
Open Curiosity witnesses a pointy decline alongside sturdy bearish momentum for the worth
Supply: Coinalyze
Over the weekend, the Open Curiosity noticed a pointy decline to point the liquidation of lengthy positions. The sentiment was bearish and the funding rate was additionally unfavourable over the weekend. Liquidation information from Coinalyze confirmed $4.98m value of lengthy positions liquidated when Filecoin dropped from $4.15 to $3.02 on December 16.
The technical charts confirmed a bearish bias as momentum and market construction favored the sellers. Futures market individuals weren’t hopeful of a restoration for Filecoin anytime quickly both. If FIL can reclaim $3.4, this might see a change in decrease timeframes. The longer-term development remained closely in favor of the sellers.