- BEAM bulls have momentum, but could run into trouble soon
- Range formation could benefit traders and investors with patience
Beam [BEAM] saw a 9.6% rally on Friday, 18 October. From the lows it posted on 10 October, the token, at press time, was up by a respectable figure of 28.1%. Its long-term downtrend from April seemed to have morphed into a consolidation phase too.
While that is encouraging news for investors, the token is not yet ready for a breakout. Therefore, investors must remain patient and consider buying at the support levels outlined.
Range formation presents many trading opportunities over time
Source: BEAM/USDT on TradingView
BEAM has been trading within a range since mid-July. This range reached from $0.0115 to $0.0196, a 71% difference from bottom to top. This wide range provided swing traders with ideal buy and sell opportunities in recent months.
The mid-range level at $0.0155 was also a significant level. Earlier this week, it was retested as support, and BEAM has bounced higher since then. The Awesome Oscillator formed a bullish crossover to indicate a shift in momentum.
In contrast, the A/D indicator struggled to climb past a level that had been a support in August and September. This meant that distribution was the stronger force, despite October’s gains.
Therefore, swing traders must be prepared to sell BEAM near the range highs and can consider going short after a rejection from $0.0196.
Magnetic zone could pull BEAM a little higher
Source: Coinglass
AMBCrypto found that there was a sizeable concentration of liquidation levels at $0.0185-$0.0188, and another at $0.0138. At press time, BEAM was trading just under the former liquidity pocket.
Realistic or not, here’s BEAM’s market cap in BTC’s terms
Combined with the mid-range level serving as support, it is likely that the bulls manage to push the price slightly higher. The $0.0188-$0.0196 region’s retest can be expected to yield a bearish reversal.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
