Bitcoin has maintained its market structure over the $28.8k level, amidst a consolidation period in the cryptocurrency market. Extreme fear continues to grip the market, and the sentiment remains bearish. This is despite Bitcoin staying above the lows of May 12, 2022, when it reached the $25.5k price level before getting bought up quickly and printing a bullish Dragonfly Doji candle that day. The altcoin market continues to struggle, with a number of coins trading at their lowest levels of 2022.
Avalanche (AVAX) fell to a low of $22.4 per token on May 12, 2022, before reclaiming the $29.5 level as support. It was a stunning price collapse from a local top of $69 just one week prior, on May 5, 2022. Over the past week, it has traded between $29.5 and $37 per token, the latter serving a significant resistance level. The last time prices visited these levels, occurred during the market correction in early September 2021, which took place during the bull run which began in late July, just over a month prior.
Similarly, Polygon (MATIC) fell in spectacular fashion over the past few weeks, falling from $1.17 per token on May 5, 2022, and reaching a low of $0.48 on May 12, 2022. It then recovered and has since been holding above the $0.60 level, trading between the support and the $0.75 resistance levels. This is a significant price fall, and it had not experienced these current prices since the bottom of the bear market on July 19 and 20, 2021.
Chainlink (LINK) also experienced a massive fall in price, and entered the single-digit territory for the first time since December 2020, pointing to long-term weakness for the coin, on a cyclical level. It dropped from $12.14 on May 5, 2022, to a stunning low of $5.32 per token on May 12, 2022, before retracing upwards to claim the $6.50 level as support. It has been trading in the $6.50-8.00 zone over the past week, and traders are now bracing for a potential further move to the downside.