- BEAM bulls have momentum, but could face problems soon
- Range formation could benefit patient traders and investors
Beam (BEAM) saw a 9.6% rally on Friday, October 18th. Compared to the lows posted on October 10, the token, at press time, was up a respectable 28.1%. Its long-term downtrend since April also appears to have turned into a consolidation phase.
While this is encouraging news for investors, the token is not yet ready for a breakout. Therefore, investors should remain patient and consider buying at the indicated support levels.
Range formation presents many trading opportunities over time
Source: BEAM/USDT on TradingView
BEAM has been trading in a range since mid-July. This range spanned from $0.0115 to $0.0196, a difference of 71% from low to high. This wide range has provided swing traders with ideal buying and selling opportunities over the past few months.
The average level at $0.0155 was also a significant level. Earlier this week, it was retested as support, and BEAM has since rebounded. The Awesome Oscillator has formed a bullish crossover to indicate a change in momentum.
On the other hand, the A/D indicator struggled to rise above a level that had provided support in August and September. This means that distribution has been the strongest force, despite October’s gains.
Therefore, swing traders should be prepared to sell BEAM near the range highs and may consider shorting after a rejection from $0.0196.
The magnetic zone could pull BEAM a little higher
Source: Coinglass
AMBCrypto found that there was a significant concentration of liquidation levels between $0.0185 and $0.0188, and another between $0.0138. At press time, BEAM was trading just below the old liquidity pocket.
Realistic or not, here is the market capitalization of BEAM in terms of BTC
Combined with the mid-range level serving as support, it is likely that the bulls will manage to push the price slightly higher. Retesting the $0.0188 to $0.0196 region can be expected to produce a bearish reversal.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
