AVAX Price Drops to $16.37 as Bitcoin Bear Market Triggers Broader Crypto Selloff
Zach Anderson Nov 13, 2025 18:02
Avalanche falls 3.1% to $16.37 amid Bitcoin's 20% decline from October highs, testing critical support levels as tariff concerns weigh on crypto markets.
Quick Take
• AVAX trading at $16.37 (down 3.1% in 24h) • Bitcoin's bear market entry triggering sector-wide weakness • Testing lower Bollinger Band support at $15.23 • Strong correlation with broader crypto selloff continues
Market Events Driving Avalanche Price Movement
The primary catalyst behind AVAX price weakness stems from Bitcoin's dramatic entry into bear market territory, falling over 20% from its October peak. This crypto-wide selloff intensified following former President Trump's announcement of prospective 100% tariffs on Chinese goods, creating a liquidation cascade that has pressured all major altcoins including Avalanche.
Bitcoin's continued decline to $105,996.60 represents a 2.7% drop over five trading sessions, demonstrating the cryptocurrency market's heightened sensitivity to macroeconomic factors. The tariff announcement has particularly spooked institutional investors, who view potential trade wars as bearish for risk assets across the board.
AVAX price has been unable to decouple from this broader market weakness, with the token closely tracking Bitcoin's trajectory throughout the week. The absence of Avalanche-specific news has left the protocol vulnerable to macro-driven selling pressure, with traders focusing primarily on technical levels rather than fundamental developments.
AVAX Technical Analysis: Testing Lower Band Support
Price Action Context
Avalanche technical analysis reveals the token trading well below all major moving averages, with AVAX price sitting $0.97 below its 7-day SMA of $17.34 and significantly under the 200-day SMA at $22.85. This positioning indicates sustained selling pressure that has persisted for several weeks.
The 24-hour trading range of $16.35 to $17.69 shows increased volatility, with the daily ATR of $1.54 confirming heightened market uncertainty. Volume on Binance spot reached $48.7 million, suggesting institutional participation in the selloff rather than purely retail-driven movement.
Key Technical Indicators
The RSI reading of 35.81 places Avalanche in neutral territory but approaching oversold conditions, potentially setting up for a relief bounce if selling pressure subsides. More encouragingly, the MACD histogram shows a positive 0.2033 reading, indicating bullish momentum divergence despite the overall downtrend.
The Bollinger Bands position reveals AVAX price trading at just 0.2039 of the band width, very close to the lower band at $15.23. This extreme positioning often precedes either a bounce or a decisive breakdown, making the next 24-48 hours critical for direction.
Critical Price Levels for Avalanche Traders
Immediate Levels (24-48 hours)
• Resistance: $17.41 (12-day EMA confluence) • Support: $15.23 (Lower Bollinger Band)
Breakout/Breakdown Scenarios
A break below $15.23 could trigger stop-losses and accelerate selling toward the strong support zone at $15.00, with further downside risk extending to $8.52 if broader crypto markets continue deteriorating.
Conversely, a reclaim above $17.41 would signal short-term stabilization, potentially targeting the 7-day SMA at $17.34 and then the psychologically important $18.00 level where the 20-day moving average resides.
AVAX Correlation Analysis
Bitcoin:** AVAX price demonstrates high positive correlation with Bitcoin, tracking the flagship cryptocurrency's bear market decline almost tick-for-tick. This suggests limited independent strength in the current environment.
Traditional markets:** The tariff-driven risk-off sentiment affecting equities has spilled into crypto markets, with both asset classes experiencing synchronized selling pressure.
Sector peers:** Avalanche is performing in line with other large-cap altcoins, showing no particular weakness or strength relative to similar market cap protocols.
Trading Outlook: Avalanche Near-Term Prospects
Bullish Case
A stabilization in Bitcoin above $105,000 combined with any easing of tariff rhetoric could provide the catalyst for AVAX price to bounce from current oversold levels. The positive MACD histogram suggests underlying momentum may be building for such a move.
Target levels on any relief rally would be $17.41 initially, followed by $18.03 if momentum builds.
Bearish Case
Continued macro uncertainty and Bitcoin weakness could drive AVAX price through the $15.23 support, potentially triggering algorithmic selling programs. The 52-week low of $15.98 sits dangerously close to current levels.
Critical downside levels to monitor include $15.00 and ultimately $8.52 if the broader crypto bear market accelerates.
Risk Management
Given the 3.1% daily volatility and macro uncertainty, position sizes should be reduced with stop-losses set below $15.00 for long positions. Short-term traders should wait for clearer directional signals before establishing new positions given the current technical inflection point.
Image source: Shutterstock.jpg)