AVAX price to shed 17% as range tightens amid bearish onslaught

AVAX price is taking a break from trending in one direction after the recent sell-off. Instead, the altcoin is consolidating, hinting at a potential downswing breakout. 

AVAX price ready for more sell-off

AVAX price breached the ascending parallel channel on August 19 but failed to recover. This bearish development led to a 26% crash, creating a swing low of $17.46. Since then, Avalanche has lost its directional bias and consolidated in a symmetrical triangle.

With Bitcoin price looking to sweep the recently created lows at $19,511, altcoins will follow the move. Moreover, for AVAX price, a breakdown of the symmetrical triangle could result in a 17% crash to $15.75, which is an equal low containing sell-stop liquidity resting below the consolidative formation. 

Hence, investors should look for signs to short AVAX price to $15.75 in the near future. The first confirmation of the downtrend will arrive after the altcoin creates a lower low below the September 4 swing low at $18.70.

Beyond this, investors need to wait for a retest and rejection at the lower boundary  of the symmetrical triangle. 

AVAX/USDT 1-day chart

While things are looking bearish for AVAX price, a surge in buying pressure that pushes it to produce a daily candlestick close above $20.16 would dampen the bearish pressure. If bulls manage to flip this level into a support floor, it will invalidate the bearish outlook and trigger a potential rally to $22.43 and even $25.32.

Note:

The video attached below talks about a potential retracement for Bitcoin before a recovery rally. Due to altcoins' high correlation, BTC could provide signal that could help investors anticipate the downtrend in AVAX price.