Avax (AVAX) strengthened its upside potential to $ 160 in upcoming sessions as it went out of a classic bullish pattern earlier this week.

The so-called “bull flag” pattern occurs when the price consolidates down / sideways between two parallel trend lines (flag) after a strong upward movement (flag). Later, in theory, the price breaks the channel area to continue the uptrend and tends to rise to the flagpole level.

AVAX has been going through a similar price trajectory for the past 30 days, including a nearly 100% flagpole rise to almost $ 150 followed by a 50% withdrawal to $ 72 and a break above the flag’s upper trend line (~ $ 85) in December. . 15.

Daily AVAX / USD chart with a bull flag pattern. Source: Trading View
The AVAX price continued to rise after breaking out of its bullish flag range and reached almost $ 120 on December 17, but appears to be moving further towards its bullish continuation target of around $ 160. The level came after adding the highest of the AVAX mast, which is around $ 75, to the current breakout point around $ 85.

A week full of bullish events AVAX
The recent buying period in the landslide market has accelerated due to a number of positive catalysts this week.

On December 17, AVAX jumped almost 10.50% when Avalanche added the original USDC, a dollar-denominated stable coin issued by Circle, to its blockchain.

In addition, a report prepared by Bank of America analysts published on December 10 described the landslide as a viable alternative to the leading Ethereum smart contract platform. This coincided with a further 16% increase in AVAX.

Daily AVAX / USD chart showing the most important events of the week ending December 19th. Source: Trading View
On December 23, AVAX rose to a two-week high after BitGo, a cryptocurrency manager with more than $ 64 billion in total assets, announced that it would support the token.

However, modest sales at the top of the local AVAX price pushed down. AVAX then returned on December 17 when Avalanche announced that it would merge with Web 3.0 Accelerator DeFi Alliance to launch a game acceleration program.

All of the above events indicated the growth of the landslide ecosystem. For example, with the USDC, the project promises to provide a viable alternative to an expensive Ethereum (USDT) stablecoin transaction.

Moreover, by acquiring BitGo as AVAX’s institutional custodian, it appears that Avalanche is ready to accommodate accredited investors. Mike Belshi, CEO of BitGo, explained:

“Institutional storage is not the same as retail. BitGo wallets and custodians are designed from the ground up to meet the needs of institutional investors, and BitGo is the only qualified independent custodian focused on creating the right market structure and means to do so. enabling institutions to safely enter the digital asset space. ”
AVAX price risk
One of the remaining side risks associated with AVAX is related to the performance of the crypto market as a whole.

In particular, AVAX recovered during a week that saw the entire crypto market lose more than $ 114 billion, with leading cryptocurrencies Bitcoin (BTC) and Ether (ETH) down over 7% and 5% since the beginning of the week. Concerns about the Fed’s slow plans triggered a sale in the market.

As such, it seems that traders see AVAX as a short-term hedge against the downturn in the cryptocurrency market, mainly driven by a number of positive news.

Weekly AVAX / BTC chart. Source: Trading View
In addition, the AVAX / BTC pair is up almost 40% weekly at the time of writing around 0.00245 BTC, with the pair’s relative strength index (RSI) heading into overbought territory. This may force AVAX to weaken against BTC in future sessions.

Source: CoinTelegraph