Bitcoin Tests Key Parabolic Trendline as Uptrend Shows Signs of Slowing

Bitcoin has seen some brutal price action throughout the morning, with overleveraged long positions being shaken out with a brief dip…

Bitcoin has seen some brutal price action throughout the morning, with overleveraged long positions being shaken out with a brief dip down to $15,700, while those panic shorting were then liquidated by a sharp rebound.

This price action has allowed the cryptocurrency to begin inching higher and moving to retest its $16,000 support level, which could once again act as slight resistance.

This level has been acting as support for the past few days, but a continued bout of trading below it could strike a heavy blow to bulls.

BTC’s recent price action seen throughout the past few days and weeks has led to the formation of a parabolic trendline, elucidating the overwhelming control that buyers have had over the benchmark cryptocurrency’s price action as of late.

However, this trendline is now being tested, and whether or not buyers can defend it should provide some serious insights into the cryptocurrency’s near-term outlook.

A break below this level could confirm its recent $16,500 highs as a long-term top.

Bitcoin Reels Below $16,000 as Selling Pressure Mounts

Following a bout of stability above $16,000, Bitcoin has faced some sudden inflows of selling pressure that have caused it to plunge beneath this key level.

This comes just one day before the cryptocurrency closes its next weekly candle, which will be vital for gaining insights into its mid-term outlook.

If it closes below $16,000, it could be a grim sign that indicates $16,500 will be a local top. A close above this level, however, could help send it flying significantly higher.

While BTC’s momentum stalls, altcoins are actually seeing some immense strength. This trend may persist so long as BTC consolidates and doesn’t see any immense decline.

BTC Tests Parabolic Trendline as Bears Try to Break Uptrend

At the moment, Bitcoin is testing a key parabolic trendline that has been formed and respected throughout the past few months.

A break below this trendline could mark an end to the intense gains that the cryptocurrency has been seeing as of late.

One trader spoke about this in a recent tweet, questioning whether or not the parabola will survive.

“BTC: Can the parabola survive?” He concisely asked while pointing to the below chart.

Image Courtesy of Josh Olszewicz. Source: BTCUSD on TradingView.

Tomorrow’s weekly candle close should provide greater insights into where the cryptocurrency will trend next.

Featured image from Unsplash.
Charts from TradingView.

Uniswap’s UNI is Looking “Quite Attractive” as It Rebounds from Key Support

Uniswap’s UNI token has faced some intense selling pressure throughout the past few weeks, with it being struck particularly hard by…

Uniswap’s UNI token has faced some intense selling pressure throughout the past few weeks, with it being struck particularly hard by the recent downturn seen across the aggregated DeFi sector.

However, this weakness is beginning to transform into strength as buyers have sent the crypto rocketing nearly 100% from its recent lows.

The intensity of this recent uptrend indicates that bulls might be on the cusp of sparking a parabolic uptrend, with many of the so-called “blue-chip” DeFi assets all screaming higher as of late.

There’s one outstanding catalyst that could also bolster Uniswap’s UNI this week. The UNI reward LP pools that have been running for the past 57 days are about to run dry.

The selling pressure resulting from these LP incentives have been largely thought to have placed some immense downwards pressure on the cryptocurrency’s price.

Once they end, there will be less daily selling pressure placed on the token, giving it room to rally.

Uniswap’s UNI Rallies Alongside Aggregated DeFi Market

At the time of writing, Uniswap’s UNI token is trading up over 20% at its current price of $3.58.

This marks the highest price seen by the cryptocurrency in weeks and is nearly 100% above its sub-$2.00 lows set last week.

This uptrend’s intensity has come about in tandem with those seen by other benchmark DeFi assets, including Yearn.finance’s YFI token, which is also trading up nearly 20% at the time of writing.

The ongoing DeFi explosion has come about in the absence of any noticeable strength from Ethereum, which remains a backbone for the sector.

If ETH can rally higher and break past its $500 resistance, assets like Uniswap’s UNI may soon be able to climb in tandem.

Analyst: UNI Likely to Target $4.00 as Bulls Take Control

One analyst explained in a recent tweet that he is now watching for UNI’s price to rocket towards $4.00 in the near-term, noting that its chart is looking “quite attractive.”

“UNI – Beginning to look quite attractive for a long soon. Long the triangle break szn.”

Image Courtesy of UB. Source: UNIUSD on TradingView.

If the entire DeFi market continues flashing signs of strength, then UNI could be poised to see significantly further upside in the days and weeks ahead.

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Charts from TradingView.

Polychain Now Owns 1.6% of the Yearn.finance (YFI) Supply as Uptrend Holds

Yearn.finance’s YFI governance token has seen some massive momentum today, with the cryptocurrency’s price rocketing higher as buyers take control of…

Yearn.finance’s YFI governance token has seen some massive momentum today, with the cryptocurrency’s price rocketing higher as buyers take control of its mid-term trend.

The crypto is in the process of trying to break above its crucial near-term resistance, which sits at roughly $18,000. It has made a few breaks above this level, but each time it is met with inflows of selling pressure.

Where it trends in the near-term may depend largely on whether or not this level can be easily surmounted in the days and weeks ahead. If buyers struggle to shatter the selling pressure that sits here, it could be a grave sign that indicates downside is imminent.

The broader DeFi sector has been seeing some immense strength throughout the past few days.

This has come about as yields start increasing for the yVaults and on liquidity pairs on multiple platforms.

This will undoubtedly bolster the price action seen by yield aggregator assets, including Yearn.finance.

For it to rally higher, Ethereum must remain strong, as ETH is the DeFi ecosystem’s backbone.

Yearn.finance’s YFI Token Soars to Key Resistance 

At the time of writing, Yearn.finance’s YFI token is trading up over 15% at its current price of $18,000. This marks a massive upswing from daily lows of $15,990 set just a handful of days ago.

Last week, when the cryptocurrency’s price plunged to lows of $7,500, the buying pressure here sparked a nearly instant buying frenzy that caused it to rally as high as $18,000.

The resistance here was intense and held strong ever since, but it is now showing signs of strength as bulls try to break above this key level.

This Major Fund Has Been Loading up on YFI

Polychain – a major crypto venture fund – has been loading up on Yearn.finance’s YFI token throughout the course of its recent selloff, now holding 1.6% of the total supply.

Analytics firm Santiment spoke about this in a recent tweet, explaining that some large sellers have also closed short positions on the token.

“Are we seeing the return of the DeFi darling, YearnFinance? Over the past week, the segment has dominated crypto return leaderboards. A whale has actually closed his short after Crypto Twitter went short hunting – attempting to force liquidate the whale. Meanwhile PolyChain has brought their total holdings to 470 YFI ($8m or 1.6% of the total supply).”

Image Courtesy of Santiment.

Where Yearn.finance’s YFI trends next will likely guide the entire DeFi sector, making it vital that bulls take control.

Featured image from Unsplash.
Charts from TradingView.

Uniswap’s UNI Could Be Overextended as Analysts Eye a Sharp Retrace

Uniswap’s UNI governance token has been trading in close tandem with the rest of the blue-chip DeFi assets throughout the past…

Uniswap’s UNI governance token has been trading in close tandem with the rest of the blue-chip DeFi assets throughout the past few days.

Although this has generally boded well for UNI, it has faced some pressure today due to a downturn across all DeFi assets. This decline has largely come about due to Bitcoin ripping higher, sucking the oxygen out of the room.

Investors are now cycling their recent DeFi profits back into Bitcoin, and these smaller tokens may continue facing pressure on their price until BTC can stabilize.

Analysts are now noting that Uniswap’s token could be on the cusp of seeing a major downside movement, noting that the lower-$3.00 region’s selling pressure could continue hampering its price, potentially causing it to see even further losses in the near-term.

One immediate catalyst for UNI to see some upside is the end of farming incentives for the various pairs supported around the time of the token’s launch.

Farmers selling the tokens received from these pairs have been suppressing its price action.

Once they’re out of the picture, the Uniswap token may be able to catch some strong upwards momentum.

Uniswap’s UNI Token Struggles to Maintain Momentum as Market Trends Lower

At the time of writing, Uniswap’s UNI token is trading down just over 3% at its current price of $2.89. This marks a notable decline from its recent highs of $3.20 that were set around this time yesterday.

The resistance here proved to be too much for the cryptocurrency’s buyers to handle, and there’s a strong possibility that it will soon see further downside.

Furthermore, Bitcoin’s ongoing upswing is placing some pressure on the DeFi sector, so unless BTC begins stabilizing, it may contribute to this ongoing decline seen by the Uniswap token.

Trader Claims UNI is Poised to Plunge 

While sharing his thoughts on where Uniswap’s UNI token might trend in the near-term, one trader stated that he is watching for a sharp downside movement towards $2.50.

If it can find some significant support at this level and the aggregated DeFi sector also moves higher, it could see a move past its local highs.

“UNI: To me it feels a bit over-extended although I think we’ll get one more small leg up into white box, which I’ll look to short and take into the lows if the midpoint breaks.”

Image Courtesy of Bagsy. Source: UNIUSD on TradingView.

Because Uniswap’s UNI is considered a benchmark DeFi asset, its performance will likely match that of the entire sector going forward.

Featured image from Unsplash.
Charts from TradingView.

Yearn.finance (YFI) Tests Key Support as Funding Rates Flip Negative

Yearn.finance’s YFI token has been facing some intense selling pressure today as the focus shifts back to Bitcoin. YFI and other…

Yearn.finance’s YFI token has been facing some intense selling pressure today as the focus shifts back to Bitcoin.

YFI and other blue-chip DeFi tokens have posted some massive gains throughout the past few days, with the Yearn ecosystem’s token rallying from lows of $7,500 to highs of $18,000 over the course of an hour.

Other tokens followed in its footsteps and saw similar gains, with this revitalizing the aggregated DeFi sector.

Bitcoin’s sideways trading within the $15,000 region that took place concurrently with this upsurge was vital for these tokens to maintain their momentum as investors began shifting their attention away from BTC and towards higher-risk assets.

Today, however, BTC is once again pushing higher, with investors cycling their DeFi profits back into the benchmark cryptocurrency and placing some pressure on these altcoins.

One trader is pointing to the serious support just below Yearn.finance’s current price and negative funding rates as two factors that could suggest that this ongoing selloff will be fleeting.

Yearn.finance’s YFI Token Retraces from Recent Highs 

At the time of writing, Yearn.finance’s YFI token is trading down just under 10% at its current price of $15,600.

This selloff comes close on the heels of the cryptocurrency retesting its $18,000 highs that were set directly after the rally from $7,500. The resistance here proved to be quite significant and contributed to the ongoing downswing.

Bitcoin’s break above $16,000 also appears to be hampering the price action seen by Yearn.finance’s YFI and other tokens, as investors are redirecting their attention back to the benchmark cryptocurrency.

Until BTC stabilizes and enters another consolidation phase, there’s a strong possibility that smaller tokens will continue facing larger inflows of sell-side pressure.

Analyst Eyes YFI Rebound as Funding Flips Negative

While sharing his thoughts on where the cryptocurrency might trend in the near-term, one analyst explained that Yearn.finance’s YFI is seeing funding flip negative despite it entering into a support zone throughout the $15,000 region.

As such, it may soon see a sharp rebound.

“Oh… So YFI is testing support and funding is going negative across the board? Allow me,” he said while pointing to the below chart.

Image Courtesy of Cantering Clark. Source: YFIUSD on TradingView.

Bitcoin’s price action will likely hold significant influence over that of Yearn.finance and other DeFi tokens. If the cryptocurrency stabilizes, then this ongoing DeFi selloff could prove to be short-lived.

Featured image from Unsplash.
Charts from TradingView.

Chainlink is an Inch Away from Breaking a Key Resistance Level: Analyst

Chainlink has firmly broken above the $13.00 level that has been suppressing its price action for the past few weeks. This…

Chainlink has firmly broken above the $13.00 level that has been suppressing its price action for the past few weeks. This is a notable breakout and suggests that the crypto may be on the cusp of seeing significantly further upside.

Its price has been stuck below this level for the past several weeks, and breaking above it today was a major step towards it revisiting its previous all-time highs in the weeks ahead.

Analysts are now widely flipping long on the cryptocurrency, with its ongoing upswing being bolstered by a combination of technical strength and tailwinds created by the ongoing breakout seen by Bitcoin, Ethereum, and the rest of the crypto market.

One trader is specifically looking towards the cryptocurrency seeing a sharp move up towards $14.00 in the near-term, noting that the resistance here may slow its ascent slightly before seeing a breakout past $15.00.

Because the entire crypto market is looking strong, there’s a strong possibility that significantly further upside could come about in the weeks ahead. Once it breaks above $15.00, a move back to its all-time highs could be in the cards.

Chainlink Flashes Signs of Strength as Bulls Break $13.00 Resistance

At the time of writing, Chainlink is trading up just over 2% at its current price of $13.31. The $13.00 level has held strong as resistance on multiple occasions throughout the past few weeks.

Today’s break above this level is promising and indicates that bulls are in full control of its price action.

Where it trends next will depend largely on whether this level can be flipped into support, as an ability to do so could help catalyze significantly further momentum.

Analyst: LINK Likely to Push Past $14.00 as Buying Pressure Mounts

While sharing his thoughts on where Chainlink might trend in the near-term, one analyst explained that he is watching for a move to $14.00, followed by a rally to $15.00.

“LINK – Heatmap. Run it back turbo. I see no reason to short LINK here, I fully expect it to tap that 13.8-14 resistance, before mowing through it to 15…,” he said while pointing to the targets highlighted on the below chart.

Image Courtesy of NekoZ.

If this plays out how he expects, then the coming few days could be incredibly positive for Chainlink and potentially lead it back towards $20.00. This will likely come about in tandem with a push higher by the rest of the market.

Featured image from Unsplash.
LINKUSD pricing data from TradingView.