Chiliz Poised for Recovery Amidst Crypto Volatility Ahead of Bitcoin Halving

The CHZ buyers allowing a correction to a low of 61.8 FIB reflects weakness in bullish momentum. A bearish crossover between 20-and-50-day EMA hints the near term trend in bearish; however, the confluence of several technical levels at $0.10 hints at a high area of interest(AOI) for buyers.

Chiliz Poised for Recovery Amidst Cryptocurrency Market Volatility

The cryptocurrency market is experiencing heightened volatility in the lead-up to the upcoming Bitcoin halving in less than two days. While Bitcoin consolidates around $62,000, major altcoins like Chiliz (CHZ) have exhibited sideways movement this week.

Technical Analysis: CHZ Corrects, Consolidates at Key Support

The CHZ price currently trades at $0.11435, supported by the confluence of a long-term ascending trendline and the 61.8% Fibonacci retracement level. Historically, such support levels have marked bullish reversals, potentially setting the stage for CHZ to resume its recovery.

In mid-March, CHZ initiated a correction as Bitcoin surged past $70,000. The bearish reversal pushed CHZ down to $0.10, representing a significant 40% correction within two weeks.

However, CHZ has recently encountered renewed demand at the long-term ascending trendline at the $0.10 level. The price has rebounded from this support thrice in recent months, indicating a critical accumulation zone for buyers.

A recent bullish reversal has pushed CHZ above $0.11, while the market capitalization remains below $1 billion.

Technical Indicators Suggest Accumulation, Bullish Momentum

The daily Relative Strength Index (RSI) slope has rebounded from the oversold region, suggesting that market participants are continuing to accumulate CHZ during the correction.

Furthermore, CHZ has failed to break below the 200-day Exponential Moving Average (EMA) slope, indicating that buyers remain committed and the broader trend remains bullish.

Halving Anticipation Fuels Sideways Movement

As the cryptocurrency market awaits the Bitcoin halving, altcoins are likely to exhibit sluggish movement throughout this week. CHZ may extend its lateral movement above the ascending support trendline to confirm its sustainability for a higher recovery.

The potential reversal could propel CHZ to challenge resistance levels at $0.125 and $0.1678.

Breakdown from Support Signals Bearish Shift

Conversely, a bearish breakdown from the lower support trendline would indicate a significant shift in CHZ's market dynamics. Such a breakdown could plunge the coin price back to $0.10 support.

Conclusion: CHZ Primed for Recovery

The confluence of technical support and bullish indicators suggests that Chiliz is well-positioned for a recovery following the upcoming Bitcoin halving. While sideways movement is expected in the lead-up to the halving, CHZ may initiate a reversal, potentially targeting higher resistance levels. However, a breakdown from support would require reassessment of the bullish outlook.