- AVAX price to revisit $64.59, indicating the ongoing crash to steepen.
- The breaker will likely reject any short-term throwback, extending from $77.60 to $83.35.
- A four-hour candlestick close above $83.35 will invalidate the bearish thesis for Avalanche.
AVAX price is on a roll as it continues to crash due to the overall market structure of the big crypto. This downswing is likely to continue heading lower until it finds a stable support level.
AVAX price forms a bearish setup
AVAX price set up a bearish breaker formation, which contains a higher high followed by the invalidation of the demand zone formed between these swing points. The invalidated zone is now termed as a bearish breaker.
For Avalanche, the breaker extends from $77.60 to $83.35 and forecasts a rejection upon the retest of this barrier. Hence, a short-term throwback that pushes AVAX price to head higher will face intense selling pressure leading to another leg down.
The $64.59 weekly support level is the immediate platform that seems capable of handling the incoming selling pressure. Therefore, investors can expect AVAX price to see some sort of a bullish reaction here.
However, investors should not discard the idea of Avalanche price visiting $55.32, especially if the bearish regime is not controlled for Bitcoin.
AVAX/USDT 4-hour chart
On the other hand, if the Bitcoin price recovers quickly, AVAX and other altcoins are likely to follow suit. In such a case, if Avalanche price produces a four-hour candlestick close above $83.35, it will invalidate the bearish breaker setup.
This development will open the path for AVAX price to revisit the February 17 swing high at $98.78.