As a seasoned crypto investor with over a decade of experience in this volatile yet exciting market, I have witnessed countless bull and bear markets. I’ve seen Bitcoin rise from pennies to thousands, only to fall back down again, teaching us all about resilience and patience. Now, here we are, looking at AVAX, and the parallels between its current consolidation phase and Bitcoin’s historical patterns have piqued my interest.
Cryptocurrency fans are buzzing with excitement as AVAX appears to show early indications of a potential surge, boosted by a well-respected analyst’s optimistic predictions. Analyst Alan Santana has drawn attention to the similarities between AVAX’s charts and Bitcoin before its price spike, suggesting that AVAX might be on track to repeat this pattern. A comprehensive examination and additional insights can be found in the following analysis.
Drawing Parallels With Bitcoin
Santana’s argument centered around the observation that Avalanche’s prolonged consolidation stage during 2022 and 2023 mirrors similar phases experienced by Bitcoin. Specifically, he pointed to the drop of Bitcoin from $70,000 to $49,000, which was followed by a 4.5-month period of stability before it started to rebound. Analogously, Bitcoin’s surge above $20,000 in 2023 occurred after an accumulation phase that lasted for about seven months.
Avalanche Pre-2025 Bull-Market Accumulation Zone & Strategy
So far, you’re familiar with the topic we’ve been discussing – it’s about building up assets or positions before a strong upward trend. This strong upward trend is expected to culminate in a prolonged period of growth.
Avalanche vs Bitcoin: An Analogy
The accumulation phase can be seen as the training phase, the…
— Alan Santana (@lamatrades1111) August 10, 2024
Santana posits that these historical cases indicate AVAX could be preparing for a massive bull run potentially by 2025. In his view, the recent surge of optimism towards late 2023 and early 2024 is merely a small part of the larger market trend.
According to Santana, we’re currently experiencing a corrective phase, which will eventually lead to another accumulation stage. This phase is believed to set the foundation for a significant bullish surge.
New All-Time Highs Ahead?
Santana predicts that AVAX may hit a new all-time high (ATH) of around $382. His forecast is based on an analysis that uses Fibonacci levels extended from the low point in the bear market to the previous ATH. According to him, two significant levels in this study are 1.618 and 2.618, which translate to potential price targets of approximately $232 and $370 respectively.
If things go as expected, AVAX is likely to be one of the top-performing cryptocurrencies over the next few years.
As I analyze the current data on AVAX, it aligns with the trajectory observed in other prominent cryptocurrencies. Santana’s wisdom reminds us that long-term forecasts like these need to be approached with great care. Nevertheless, I share his unwavering faith in AVAX.
AVAX: The Case For A ‘Buy And Hold’ Strategy
Santana recommended an investment strategy called “buy and hold” for investors regarding AVAX. He cautioned against trying to predict market highs and lows perfectly, since it might mean missing out on opportunities if one is too busy waiting for a potential price drop. Instead, he proposed setting a price range, ideally under $20, to gradually acquire AVAX tokens over time. Once acquired, his advice was to simply hold onto the tokens for an extended period until the market experiences a bullish trend.
Market Sentiment & Technical Indicators
Despite currently showing a more balanced outlook with a Fear & Greed Index score of 45, there are signs pointing towards optimism. As per CoinCodex’s analysis, the bullish trend for AVAX could lead to a potential price surge, reaching as high as $72.68, which represents a significant increase of approximately 230.17%, by September 2024.
Looking at AVAX‘s recent performance, showing a 12.42% change over the past month and generally lower volatility, one might get the sense that it’s currently undervalued. However, with the Fear & Greed Index being on the lower side, this potentially undervalues AVAX in the market, suggesting an opportune moment for investors to consider purchasing before a potential uptrend or rally.
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2024-08-11 17:11