Tezos (XTZ) Reaches Critical BTC Support as Sellers Grow Aggressive

Tezos has been caught within a firm consolidation phase against its USD trading pair in recent weeks, with the cryptocurrency being unable to garner any clear independent momentum. That has caused its price to range between lows of $2.35 and highs of $2.65, which is around where it is currently trading at. Bulls are attempting to break this range and catalyze further upside in the near-term, although whether or not it can push higher will likely depend mostly on the rest of the cryptocurrency market. Bitcoin is showing some signs of strength at the moment, as the multiple defenses of its $10,000 support level have sent its price surging up to $10,500.

This could bode well for mid-sized altcoins like Tezos, as it may create a tailwind that helps lift them higher.

That being said, one analyst observed that the cryptocurrency has been showing some signs of intense weakness against its BTC trading pair. As such, he believes that it may be primed to see further weakness in the days and weeks ahead.

Tezos Attempts to Shatter Consolidation Phase as Buyers Garner Slight Strength 

At the time of writing, Tezos is trading up over 4% at its current price of $2.63. The cryptocurrency has been consolidating throughout the past week.

This consolidation phase comes as the aggregated market shows some signs of weakness. That being said, Bitcoin and Ethereum’s ongoing rebound may indicate that the recent downturn will prove to be fleeting. At the moment, XTZ is attempting to shatter this consolidation phase, but it is running into some resistance at the upper boundary of this range. If broken with decisive momentum, it may be able to surge significantly higher.

Analyst: XTZ Shows Hints of Weakness Against Bitcoin as It Plunges Towards Crucial Support 

While looking towards Tezos’ Bitcoin trading pair, one analyst that it is currently sitting at the lower boundary of a long-held range. Despite the support here, he notes that he is hesitant to flip long and that a break below this level could lead it to see a significant decline down to lows not seen since early-2020.
“XTZ (HTF): Pretty vicious sell-off on the BTC pair. We’re at range low support here, so I definitely would not be shorting at the moment, but I’m also hesitant on longing it; I guess that’s a trader’s dilemma. If the range low breaks, I’d look for the following scenario,” he said in reference to the below chart.

Image Courtesy of Bagsy. Chart via .

The coming couple of days should provide investors with deeper insights into the state of mid-sized altcoins like Tezos.

Featured image from Unsplash
Charts from .
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