BONK and WIF in Bearish Slump: Recovery Prospects Uncertain

BONK: Is a Recovery in Sight?

The 4-hour chart for BONK paints a bearish picture, with buyers struggling to reverse the downtrend. Sentiment remains neutral to bearish, with Bitcoin hovering around $64k.

The capital outflow from BONK is concerning for investors. The one-day chart shows a bullish structure, but prices are above the 78.6% Fibonacci retracement level. The RSI has slipped below 50, indicating bearishness.

A drop below $0.00001885 would signal a move towards the swing low of $0.000011, confirming the bearish market structure. The Chaikin Money Flow indicator also points to bearishness, with a reading below -0.05.

However, the liquidation heatmap shows a bright band between $0.0000177 and $0.0000185, indicating a potential area of support.

WIF: Bulls Struggle to Gain Traction

The 4-hour chart for WIF also exhibits a bearish structure. The swing low of $2.04, breached on March 20th, remains intact. Momentum has been firmly bearish since March 18th, with the RSI below 50.

WIF needs to climb above $3.3 to flip the timeframe structure bullishly. However, the evidence suggests that bulls lack the strength to force a recovery. The OBV has been moving sideways, and trading volume is low.

The Open Interest chart has declined alongside prices, reflecting bearish sentiment and a lack of speculative activity. Short selling has not yet ramped up.

Surprisingly, the spot CVD has been flat over the past four days, indicating low selling volume in the spot markets. If sentiment shifts bullishly, bulls could push prices higher.

Conclusion

Both BONK and WIF face bearish headwinds in the short term. BONK has a chance of recovery, as indicated by the liquidation heatmap. However, WIF bulls are struggling to gain traction, with a bearish market structure and weak momentum.