【$AVAX Signal】Bid-Ask Sniping! 1H Triangle Convergence Ending, Awaiting Trend Reversal Breakout

$AVAX The 1H timeframe is at the very end of an extremely converged triangle pattern, with price oscillating narrowly between $8.80 and $8.90. The 4H timeframe remains in a downtrend, but the 1H RSI (37.22) is approaching oversold territory, and open interest (OI) remains stable with no signs of panic selling. The current price decline is accompanied by a negative funding rate (-0.0261%), indicating a potential short squeeze rebound opportunity. The order book shows selling pressure concentrated at $8.832-$8.85. Once broken, upward space will open.

🎯Direction: Watch(Bid-Ask Orders)

⚡Breakout Long Entry Orders: $8.86 - $8.88 (Reason: Valid breakout of 1H triangle upper boundary and dense sell pressure zone)

⚡Pullback Long Entry Orders: $8.78 - $8.80 (Reason: Testing previous support and potential 4H demand zone)

🛑Stop Loss: $8.72 (Reason: Break below recent strong support level, ATR-based stop loss)

🚀Target 1: $9.05 (Reason: 4H EMA20 resistance and previous rebound high)

🚀Target 2: $9.25 (Reason: 4H previous high resistance and Fibonacci 0.5 retracement level)

🛡️Trade Management:

- Position Size: Light (Reason: Unclear direction, wait for breakout confirmation, high volatility)

- Execution Strategy: Once any order is triggered, if price moves quickly in a favorable direction, reduce position by 50% near Target 1, and move stop loss to entry price. If price hovers around entry for more than 2 1H candles without profit, consider closing the position.

Deep Logic: Market signals indicate price decline, but OI remains stable, suggesting more of a passive stop-loss for longs rather than active liquidation by large players. The 1H EMA20 at @$8.90( is the recent bull-bear dividing line; breaking above indicates short-term strength. Order book depth is unbalanced—20.08% sell-side thin orders—favorable for rapid upward movement. In a negative funding rate environment, short positions incur higher costs, creating conditions for a short squeeze. The key is waiting for volume-confirming candles on the 1H timeframe to confirm direction.

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