Bitcoin Likely to Break Below $11,000 Before Next Uptrend: Analyst

Bitcoin has been caught within a prolonged consolidation phase throughout the past few days and weeks, with buyers and sellers both…

Bitcoin has been caught within a prolonged consolidation phase throughout the past few days and weeks, with buyers and sellers both being unable to take control of its near-term trend.

This has done little to offer investors with insight into where it may trend next, and its close correlation to the U.S. stock market makes it likely that it will continue lacking a trend until either the election is finished or a second round of stimulus is passed through.

This could be incredibly bearish for altcoins, as they have been slowly sliding lower over the past few days while investors move to take some risk off the table while the entire market’s outlook remains somewhat uncertain.

One analyst is now noting that he expects Bitcoin to see a pullback in the near-term that takes it beneath $11,000.

Although this decline would be overtly bearish, he believes that it will be the last decent buying opportunity and will be followed by significant upside.

Bitcoin Struggles to Break Consolidation Phase as Selling Pressure Persists

At the time of writing, Bitcoin is trading up marginally at its current price of $11,340. This is around where it has been trading throughout the past few days and weeks, with buyers and sellers largely reaching an impasse.

Its rally up to these highs occurred last week close on the heels of news regarding Square’s decision to purchase $50 million worth of BTC to be held on their asset books.

This news was certainly bullish and marked another step forward towards Bitcoin becoming a reserve asset.

That being said, it was not enough to push BTC past the resistance it faces within the mid-to-upper $11,000 region.

Analyst: BTC Likely to Reel Towards $10,700 Before Extending Uptrend

For Bitcoin to further extend its uptrend and rally higher, one analyst is noting that it is imperative that the cryptocurrency retraced towards $10,700 before making any further advances.

“We finna tap the MO. But don’t go net short or you’ll get left behind empty handed for good,” he said while pointing to the chart seen below.

Image Courtesy of Byzantine General. Source: BTCUSD via TradingView.

Where the entire market trends next will depend largely on Bitcoin and on whether or not it can defend against any sustained downturn in the days, weeks, and months ahead.

Featured image from Unsplash.
Charts from TradingView.

TD Buy Trigger Could Cause XRP To Rip Against Bitcoin

Bitcoin has recently been picking up steam, stealing some of the capital and thunder from the DeFi trend and Ethereum. XRP,…

Bitcoin has recently been picking up steam, stealing some of the capital and thunder from the DeFi trend and Ethereum. XRP, however, continues to lag behind both top crypto assets and linger sideways.

According to the Bitcoin trading pair, however, Ripple could soon rip against the leading cryptocurrency by market cap and catch up against Ethereum after long trailing behind.

TD 9 Buy Setup Prepares Ripple For Recovery Against Bitcoin And Ethereum, Revenge Against Tether

Believe it or not, there was once a time when XRP had unseated Ethereum as the number two cryptocurrency by market cap. Now, even stablecoin Tether has printed enough market cap to put it ahead of Ripple, making now the fourth-ranked cryptocurrency.

At the height of Chainlink’s parabolic run this summer, it had also beaten XRP moving it further down the top ten cryptocurrencies by market cap. If XRP doesn’t catch up soon, investors could lose hope and capitulation could set in.

TD 9 Buy Setup Triggered On TD Sequential Daily | Source: XRPBTC on TradingView.com

But the return of Ripple could soon finally be here, according to the XRPBTC trading pair and a buy setup triggered by the TD Sequential technical indicator. The signal, is widely used across the crypto space and known for its undeniable accuracy.

However, it’s not the only sign that things could soon turn around.

Daily Bollinger Bands Doji Reversal Potential | Source: XRPBTC on TradingView.com

XRPBTC About To Blast Off If Downtrend Line Retest Holds, Bollinger Bands Rebound

Coinciding with the TD 9 buy setup triggering on daily timeframes, XRPBTC is forming a doji at the bottom of a short- and medium-term downtrend, just as it closed outside of the bottom Bollinger Band.

Past doji closes back into the Bollinger Bands have resulted in at least some upside following. Many instances resulted in strong reversals.

Retest of Downtrend Resistance Turned Support | Source: XRPBTC on TradingView.com

Zooming out, XRPBTC also seems to be retesting a breakout of its long-term downtrend resistance line as support. If Ripple can hold against Bitcoin here, the recovery could finally follow.

XRP has been trading around the $0.25 range for almost all of 2020, potentially building up pressure for a massive move both against dollar and the top cryptocurrency by market cap. If it does as it has in the past, Ripple moves fast and furious, and it could reclaim any of the top spots above it in a flash, except for perhaps Bitcoin.

Featured image from Deposit Photos, Charts from TradingView.com

Analyst: 2021 a Perfect Time For Ethereum, Decentralized Exchanges to Boom

The third quarter of 2020 has seen the strong resurgence of decentralized finance (DeFi) on Ethereum. With it, the demand for…

The third quarter of 2020 has seen the strong resurgence of decentralized finance (DeFi) on Ethereum. With it, the demand for decentralized exchanges (DEXes) surged, causing Uniswap to briefly overtake Coinbase Pro at one point.

Heading into 2021, Ethereum and decentralized exchanges would likely perform even better, quant trader Qiao Wang said.

Two Reasons an Ethereum and Decentralized Exchange Take Off in 2021 is Likely

From July to September, DeFi and decentralized exchanges saw a massive spike in demand.

The frenzy around yield farming, which mostly revolves around staking various cryptocurrencies including Ethereum to earn governance tokens, caused DEX volume to spike.

Since centralized exchanges undertake a rigorous verification process to list tokens, newly-emerging DeFi tokens typically do not get on exchanges in time.

Consequently, traders and DeFi users flock to decentralized exchanges, like Uniswap, to trade DeFi tokens.

When the yield farming craze was at its peak in September, the high user activity on decentralized exchanges clogged Ethereum. There was significant genuine demand from real users, a level that Ethereum had not seen before.

In 2021, Wang said the demand for decentralized exchanges could rise further due to the uncertainty around centralized exchanges.

In the second half of 2020, the cryptocurrency market saw KuCoin, BitMEX, and OKEx suffer negative events. KuCoin fell victim to a large-scale security breach, BitMEX was charged by the U.S. Commodities and Futures Trading Commission (CFTC), and an OKEx private key holder has been investigated.

According to Wang, the uncertainty around major exchanges could lead to a decentralized exchange activity increase. He said:

“Hard to overstate the importance of 1) Ethereum L2s and scalable L1s coming online 2) What happened to Kucoin/Bitmex/Okex over the last 2 weeks Timing cannot be better for decentralized futures/swap exchanges to finally take off in 2021.”

Such a trend would naturally benefit Ethereum for two reasons. First, that would further increase the network activity of Ethereum, strengthening its fundamentals. Second, that would cause the demand for scaling to increase.

The year-to-date price trend of Ethereum. Source: ETHUSDT on TradingView.com

Would ETH 2.0 Come in Time?

Based on the struggle of the Ethereum network to handle the significant volume coming from decentralized exchanges in the third quarter, ETH 2.0 is highly sought after.

ETH 2.0 is a major network upgrade that would shift Ethereum to the proof-of-stake (PoS) consensus algorithm. Unlike the proof-of-work (PoW) algorithm, PoS eliminates its dependence on miners and incentivize users to verify transactions through scaling.

Especially if derivative decentralized exchanges take off, Wang said scaling could become even more critical.

“Key ways in which derivative DEX is different from spot DEX: 1) Derivatives smart contracts are more complex and expensive to execute. 2) Derivative traders are more sensitive to slippage and fees as they are more short term. Hence scaling is more critical for derivatives,” he added.

How Three Crypto Unicorns Going Public In 2021 Could Boost Bitcoin

Something special seems to be brewing in the crypto industry lately. Bitcoin is becoming a respected and mature financial asset, and…

Something special seems to be brewing in the crypto industry lately. Bitcoin is becoming a respected and mature financial asset, and the businesses associated with them are finally getting the respect they demand too.

The next year, a major catalyst for the next crypto bull market could be a variety of crypto companies going public by way of IPO, bringing much-needed interest and attention from traditional finance into the world of emerging digital assets. Here are the three crypto unicorns one analyst expects to see go public next year, along with one more company that could follow suit – and what the impact this might have on Bitcoin and the greater crypto industry.

Could Bitcoin’s Next Bull Run Be Fueled By Crypto Unicorn IPO FOMO?

Years ago, the crypto bubble that brought Bitcoin to $20,000 and Ethereum to $1,400 and made them household names, had very little to do with the companies that offered these digital assets.

They simply were intermediaries that offered the exchange of cash for such crypto coins, and little more. But over the years during the crypto bear market, these companies that once only offered Bitcoin have built themselves into an empire of products and services, that challenge the likes of traditional banking.

Coinbase, for example, is a financial powerhouse in its own right, offering lending, borrowing, education, and more, right alongside investing. But Coinbase is just one of three giants that crypto analyst and market commentator Ryan Selkis has his “money on” that goes public in 2021.

My money is on three U.S. crypto unicorns going public in 2021, Coinbase, DCG, and BlockFi ($1bn at IPO?)

Of the three, Coinbase may be the most interesting bellweather for public market crypto appetite as it’s the only one that’s likely down from 2018 revenue.

Thoughts?

— Ryan Selkis (@twobitidiot) October 14, 2020

He says of the three he expects, Coinbase “may be the most interesting bellwether for public market crypto appetite,” and points out the company’s revenue is down year-over-year since 2018 – when retail FOMO finally fizzled.

Coinbase IPO rumors first appeared earlier this year, and now it has since caused a ripple-effect of other companies that are expected to follow suit.

Related Reading | Here’s How XRP Could Derail Ripple’s IPO Plans

Selkis also expects blockchain-based wealth management services provider BlockFi and the Barry Silbert-led Digital Currency Group to follow the lead and debut publicly with an IPO.

While Selkis doesn’t mention another crypto project, Ripple was also rumored to be considering an IPO but may have run into a regulatory snafu that is prompting the company to potentially relocate to further its goals as a business.

Could Crypto Unicorns Going Public Help Set A New High In Crypto Market Cap? Source: CryptoCap-Total on TradingView.com

The cryptocurrency total market cap is still down by more than half from its previous all-time high.

While any of the money coming into IPOs won’t contribute to this figure at all, it is more than probable that if crypto takes the limelight in the traditional asset space, cryptocurrencies themselves like Bitcoin and Ethereum will see a major boost, and so will the total crypto market cap.

Featured image from Deposit Photos

Analyst: Yearn.finance (YFI) is “Finished” as Technical Outlook Grows Grim

Yearn.finance’s governance token YFI saw a notable rebound from its recent lows overnight, which comes as sentiment surrounding the crypto remains…

Yearn.finance’s governance token YFI saw a notable rebound from its recent lows overnight, which comes as sentiment surrounding the crypto remains incredibly low.

A fragmented community coupled with a lack of momentum in the aggregated DeFi space has created serious headwinds for YFI, which is now trading down well over 50% from its recent highs.

The lack of sustainable upwards momentum seen by the token in recent weeks indicates that its buy-side pressure is evaporating, which comes as bears grow stronger.

Although it has yet to revisit its recent lows of $12,000 set last week, the cryptocurrency could be positioned to see further downside unless there is some unexpected catalyst for a rally.

One trader says that YFI’s uptrend is officially “finished” as its price drifts lower and lower each day.

He believes that it will ultimately descend below $10,000, noting that he won’t be interested in it for “quite some time.”

Yearn.finance Rebounds from Daily Lows, But Shows Continues Signs of Weakness

At the time of writing, Yearn.finance’s YFI token is trading up over 4% at its current price of $15,150.

This marks a notable rebound from its daily lows of $14,000 set just a matter of hours ago.

With each strong dip that the YFI token faces, there is a strong influx of buying pressure on the other side that helps drive it higher.

That being said, each subsequent rebound is growing weaker and weaker, which indicates that its bulls are losing their strength and influence over its price action.

Ultimately, this could result in it seeing another capitulatory decline that sends it reeling down to, or even below, its recent $12,000 lows.

Analyst: YFI is “Finished” as Downtrend Continues

While speaking about where he thinks Yearn.finance’s embattled token might trend next, one analyst explained that he thinks it will slide lower for “quite some time.”

He notes that they also need to redefine their suite of products, which aren’t currently providing investors with much value as the entire DeFi space plunges lower.

“I think YFI is finished until they manage to redefine the product suite. Probably not a straight line, but I’m not interested in it for quite some time.”

Image Courtesy of Ledger Status. Source: YFIUSD on TradingView.

The coming few days should provide some serious insights into Yearn.finance’s future, as the rapid decline seen by YFI’s price may have lasting impacts on the community as a whole.

Featured image from Unsplash.
Charts from TradingView.

Bitcoin Bulls Rejected Hard At $11,500 Retest, Rapid $250 Drop Follows

Bitcoin price is experiencing a surge of intraday volatility, rocketing $150 in minutes then collapsing more than $250 just moments later….

Bitcoin price is experiencing a surge of intraday volatility, rocketing $150 in minutes then collapsing more than $250 just moments later.

Here’s what is going on in the top-ranked cryptocurrency and what to watch for as price action to develops.

Triangle False Breakout Rejects Bulls Back Below Resistance At $11,500

Bitcoin’s notorious volatility is back after a short-lived phase of tranquility. Explosive price action this week following a bullish breakout of a downtrend line on the heels of Square news sent the cryptocurrency well above $11,000 and kept climbing.

Bulls Rejected After False Descending Triangle Breakout | Source: BTCUSD on TradingView.com

Resistance above $11,750 proved too strong to penetrate and the leading crypto asset by market cap fell lower, where a triangle began to form.

This morning, a false breakout of the upper trendline baited bulls into a fierce rejection, resulting in a sharp drop of $250 lower.

Bearish Bitcoin Chart Pattern Points To Retest Of $11,000, Will It Hold?

Zooming out further, shows the descending triangle breaking down with a potential target of $11,000.

Descending Triangle Bearish Breakdown in Progress | Source: BTCUSD on TradingView.com

Bears have a chance of pushing Bitcoin back down toward $10,000 if bulls cannot defend the key support level. However, if the crypto asset can reclaim $12,000, chances of a higher high in 2020 will become a lot more likely.

The current price level is a pivotal range where whichever way breaks, could set the trend for the rest of the year and into 2021.

Featured image from Deposit Photos, Charts from TradingView.com