Audiera (BEAT) has attracted enough capital inflows to push its valuation sharply higher, with its market cap up 17% at the time of this analysis and the asset valued at approximately $970 million.
This performance approaching the weekend leaves unanswered the question of whether the rally will continue into the new week. Several factors favor continuation, and a handful of risks directly oppose them.
BEAT chart indicates incomplete uptrend
4 hour chart shows HIT There is more space ahead than the current movement implies, and the situation is based on the pattern the asset has just exited.
BEAT has broken out of an ascending triangle, a structure that often precedes an extended rise, and the measured move usually carries the price towards the point where consolidation first begins.
When executed here, the extension guides BEAT towards $4.0, returning the asset to the area it held before consolidation began.
The route here is far from clean, as there are two levels between BEAT and the target. The asset must first absorb the $3.2 supply, then break through $3.6 before the ultimate target comes into play.
Momentum is currently supporting this initiative, and volume is up 82% to $32.87 million, according to CoinMarketCap.
Purge heat map keeps the pressure on
The rally carries pressure of its own, and the liquidation heat map explains why the reversal comes with a warning.
Clusters are located both above and below the current price and show where sell and buy orders are concentrated. The above give BEAT a target to pursue as momentum continues, but they quickly weaken and limit how far the swing can extend.
The heavier risk lies downstream, where liquidity clusters are denser and extend further below spot. Clusters of this size act as a magnet, pulling the BEAT towards them once the upward pressure weakens, accelerating any decline.
Positioning is still in an upward trend for now; traders are betting that they will lose roughly $488,910 during the period, compared to the $98,510 lost by traders taking long positions.
Indicators point to BEAT being far from a near-term decline
Given the direction of momentum indicators, BEAT looks more likely to resist a short-term decline.
The Moving Average Convergence Divergence reading indicates that bullish momentum is increasing; The MACD line (the difference between the 12- and 26-period EMAs) is moving above the signal line for the first time since early July.
Bull Bear Power strengthens the picture by showing that the bulls are pushing back into the market with the strongest reading since June 14. This strength suggests that buyers can maintain current levels and keep the price above these levels for longer than the current trade implies.
Final Summary
- The ascending triangle breakout on BEAT’s 4-hour chart predicts a move towards $4, but resistances at $3.2 and $3.6 lie ahead.
- Liquidation clusters operate more intensely below the spot than above, leaving BEAT subject to a sharp pullback as buying momentum weakens.
