Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice
Bitcoin broke past multiple levels of resistance in the past few days and was trading above $45k at the time of writing. This has seen many coins across the altcoin space post sizable gains, including MATIC. In other news, Polygon raised $450m of capital by the private sale of its token MATIC in a round led by Sequoia Capital India, with each token priced at $2 at the time of sale.
Over the past couple of weeks, the price appeared to form a range (yellow) between $1.495 and $1.75. In the past few days, the price tried twice to break past the range highs. In doing so, MATIC laid a marker at the $1.758 level- the break of this level followed by its retest as support indicated a successful bullish breakout for MATIC.
Since then, the price has rocketed to the $2 level of round-number resistance. In the past month, the $1.9-$2.05 area has acted as support before it was flipped to resistance when Bitcoin fell below the $39k level. Recent days have seen a bullish Bitcoin, although it now faces resistance at the $46k area.
It was a strong bullish development for MATIC as it climbed above the $1.92 level. In the coming hours/days, a retest of this area as support appeared to be a buying opportunity. There was also some support at the $1.84 level.
However, while Bitcoin has had strong demand in recent days, it was also possible that it could dip back to the $42k area or even $39k area in search of buyers. This could see a large pullback on altcoins.
Rationale
Source: MATIC/USDT on TradingView
The RSI formed a bearish divergence on the hourly with the price at $2.07 and MATIC has seen some selling pressure in the hours since. The RSI continued to remain above neutral 50, while the market structure also remained bullish.
A session close back below $1.75 would break this structure. This could be an unlikely outcome- the CDV showed strong buying volume in the past couple of days.
Conclusion
The demand behind MATIC’s recent rise indicated that, so long as MATIC can stay above $1.75, it would have a chance of breaking above the $2.05 resistance. Bitcoin was bullish but it was unclear whether bulls can force further gains, or whether considerable profit taking can push BTC back to the $42k or $39k areas.