ApeCoin Breaks Resistance, Bitcoin Fights Intense Resistance Near $17K
1. Bitcoin has climbed past the $17k mark recently, but is facing intense resistance near the $17.6k and $17.8k marks.
2. ApeCoin has also traded within a higher timeframe zone of resistance and has posted a bearish divergence on the 4-hour chart.
3. A rejection at the order block could see a pullback to the bullish breaker at the $4.4 zone.
The crypto market has been in a state of flux lately, with Bitcoin soaring past the $17k mark, while altcoins have been struggling to keep up. ApeCoin (APE) is a notable exception, as the coin has seen an impressive run, trading within a higher timeframe zone of resistance.
The king of crypto, Bitcoin, surged to $17.4k at the time of writing and faced intense resistance near the $17.6k and $17.8k marks. A drop for Bitcoin could drag the rest of the market down as well. As for ApeCoin, it has been trading within a higher timeframe zone of resistance. A pullback was likely for APE, but this could be followed by a northward move.
On the daily timeframe, ApeCoin registered a bearish order block on 5 November, marked by a red box. This move upward to $5.25 was followed by a sharp drop to the $2.82 level a few days later. This marked the zone of resistance as a place where a similar reaction could occur once more. A rejection remained likely, and only a daily session close above $5.25 could flip this bias.
On the four-hour chart, the relative strength index (RSI) was receding even as the price climbed higher- a bearish divergence. This indicated that the bullish momentum was visibly slowing, even as the on-balance volume (OBV) climbed higher to indicate steady buying pressure.
A rejection at the order block could see a pullback to the bullish breaker at the $4.4 zone. The $4.26-$4.37 range was a good demand zone where buyers could potentially enter. If ApeCoin breaches the $5.25 mark and closes above it, then traders can expect it to test the $6.1 level, which is the next major resistance.