Over the past week, the crypto market has seen some short-term success. Bitcoin [BTC] saw Spot ETF inflows and rising short-term demand. There was high volatility, but the liquidation figures were relatively tame. This was likely due to a fall in Open Interest after the strong downtrend since October.
In this environment of prevalent fear morphing into cautious optimism, Aptos [APT] has been challenging the $1 psychological round-number resistance. On Wednesday, 25 February, the altcoin rallied to a local high of $1.11. However, it soon retraced by 22% over the next three days.
Will APT bulls succeed in enforcing a bullish breakout this time?
Source: APT/USDT on TradingView
The long-term trend on the 1-day chart was bearish, but it was on the verge of beginning to reverse. The swing point at $1.008 was the most recent swing high of the downtrend. A breakout above this level would signal a shift in the long-term Aptos token price trends.
The A/D indicator has advanced strongly over the past two weeks, and the MFI was above 50. Together, they hinted at steady buying pressure and upward momentum.
Source: APT/USDT on TradingView
On the 4-hour chart, a triangle pattern emerged just below the $1 psychological resistance level. The A/D and MFI indicators were slightly bullish on this timeframe too. However, it was the rising triangle pattern that was most intriguing.
As buyers challenged the $1-level, they forced the price to form higher lows over the past week. This was a sign of conviction in a bullish breakout. Given the technical and psychological importance of the $1-level, the fact that the rejection from this resistance was overcome, and it was under siege so quickly, hinted at bullish strength.
Traders’ call to action – Cautiously bullish
Source: CoinGlass
The 1-month liquidation heatmap revealed a cluster of short liquidations from $1 to $1.12. Combined with the triangle pattern seen earlier, it might be highly likely that a bullish breakout would commence soon.
Traders can wait for the $1-level to be flipped to support before examining if it is a buying opportunity. With Bitcoin [BTC] also fighting to keep control of the psychological $70k, traders should remain cautious.
Final Summary
- Aptos has a long-term bearish structure.
- Formation of the rising triangle pattern in recent days under the $1-resistance meant a bullish breakout could be brewing.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Source: https://ambcrypto.com/aptos-is-a-potential-bullish-breakout-ahead-for-apts-price/
