Bitcoin remains stuck in a tightening range but select altcoins may
begin moving higher if they bounce off their key support levels.
This week Digital Assets Data CEO Mike Alfred told
Cointelegraph that mainstream investors are still “skeptical of Bitcoin
and the ecosystem."
However, Alfred believes that this “skepticism and disbelief” will turn out to be a positive for Bitcoin (BTC)
because when the “traditional folks capitulate, they will be forced by
their clients and partners to get involved at significantly higher
prices."
While Bitcoin has struggled to start a sustained uptrend
in the past few weeks, select altcoins and tokens in the DeFi space have
been in a strong bull run. This shows that traders attention has
shifted away from Bitcoin.
Crypto market data daily view. Source: Coin360
Pantera Capital founder and CEO Dan Morehead believes that the DeFi space will outrun Bitcoin in the next five years and grow by about 100x.
In the long-term, most analysts are uber bullish on the crypto space but what can traders expect in the next few days?
Let’s
have a look at the cryptocurrencies that could offer short-term trading
opportunities and spot the critical levels on each of them.
BTC/USD
Bitcoin
completed a bullish inverse head and shoulders pattern on July 27 when
it closed above $10,500 and usually the price retests the breakout
levels of such reversal patterns.
BTC/USD daily chart. Source: TradingView
In
ideal conditions, the price should not dip below the neckline of the
inverse H&S pattern, but trading is anything but ideal.
Although
the bears pulled the BTC/USD pair below the neckline on Sep. 3, there
has not been much follow up selling, which suggests buying by the bulls
at lower levels. However, this buying dries up when the price tries to
move up above the $10,500 level.
Due to this, the pair is
currently stuck in the $9,835–$10,625 range. After the bears failed to
sink the price below the range on Sep. 8, the bulls today attempted to
push the price above the overhead resistance but failed.
The
20-day exponential moving average ($10,719) is just above the resistance
of the range, hence, the bears are likely to defend it aggressively.
However,
if the bulls can propel the pair above the 20-day EMA and sustain the
higher levels for three days, it will suggest that the correction is
over. That could result in a retest of $12,460 and if this resistance is
crossed, the uptrend is likely to resume.
This bullish view will be invalidated if the pair breaks and sustains below the $9,835 support.
BTC/USD 4-hour chart. Source: TradingView
The
4-hour chart shows that the bears are aggressively defending the
$10,625 resistance but if they fail to sink the price below the $10,200
support, the bulls will once again try to clear the overhead resistance
of the range.
If they succeed, aggressive traders are likely to jump in, which could result in a quick move to $11,400 and possibly $12,000.
Contrary
to this assumption, if the bears sink the price below the $10,200
support, a drop to $10,000 and then to $9,835 is possible.
BNB/USD
While most major cryptocurrencies are searching for a bottom, Binance Coin (BNB) has resumed its uptrend and made a new 52-week high, which is a sign of strength.
BNB/USD daily chart. Source: TradingView
Although
the relative strength index was showing the formation of a bearish
divergence, the sharp move on Sep. 12 invalidated this bearish setup.
Currently,
the BNB/USD pair is facing stiff resistance at the $32 level but if the
bulls do not allow the price to dip below the critical support at
$27.1905, a retest of $32 is likely. A break above this resistance could
push the price to $38.
Contrary to this assumption, if the bears
pull the pair down below $27.1905 it will indicate that the current move
might have been a bull trap.
BNB/USD 4-hour chart. Source: TradingView
The
bears are aggressively defending the $32 level as seen from the long
bearish candle on the 4-hour chart. However, the positive sign is that
the bulls are not panicking and they continue to purchase the dip.
They
will now again try to push the price above the $32 resistance. If they
succeed, the momentum is likely to pick up but if the price again turns
down from $32, the pair could remain range-bound for a few days.
NEO/USD
The failure of the bears to sink and sustain NEO below the breakout level of $16.72441 attracted buying by the bulls who pushed the price to $21.97869 today.
NEO/USD daily chart. Source: TradingView
The
bears are defending the $22–$22.82612 resistance zone aggressively but
if the NEO/USD pair rebounds off the 20-day EMA ($18.54), the bulls will
once again attempt to push the price above the resistance zone.
If
they succeed, the next leg of the up-move is likely to begin. There is a
minor resistance at $25.23 above which the momentum is likely to pick
up.
However, if the bears sink the price below the 20-day EMA, the
pair might drop to $16.72441. A breakdown and close below this support
will be a huge negative.
NEO/USD 4-hour chart. Source: TradingView
The
failure to break above the $22 level could have attracted profit
booking by the short-term bulls. This has pulled the price below the
20-EMA.
However, if the bulls can keep the price above $19.27244,
(50% Fibonacci retracement level), then another attempt to clear the
overhead resistance is likely.
A break below the $19.27244–$18.63376 support could weaken the momentum and result in a drop to $16.72441.
YFI/USD
The correction in Yearn.finance (YFI)
that started on Aug. 31 found support close to $21,345, which was the
50% Fibonacci retracement level of the entire run-up from
$3,000–$39,690.
YFI/USD daily chart. Source: TradingView
Repeated
attempts by the bears to break below the $21,345 support failed and the
range shrunk between Sep. 5 and Sep. 8, which suggested indecision
among the bulls and the bears.
This uncertainty resolved to the
upside with a sharp up-move on Sep. 9, which indicated that the bulls
had reasserted their dominance. The target objective of this next leg of
the uptrend is $46,632.46 and then the psychological resistance at
$50,000.
However, the bears are attempting to stall the rally at
$43,966.31. If they can sink the YFI/USD pair below the 50% Fibonacci
retracement level of the most recent leg of the rally at $31,011.37, the
momentum is likely to weaken.
The developing bearish divergence
on the RSI warrants caution but if the pair rebounds from the
$34,068.74–$31,011.37 support zone, the bulls will make another attempt
to resume the uptrend.
YFI/USD 4-hour chart. Source: TradingView
The
bears have pulled down the pair below the 20-EMA, which suggests that
the short-term momentum has weakened. The next support on the downside
is $31,011.37.
If the pair rebounds sharply from $31,011.37, the
bulls will make one more attempt to push the price above the overhead
resistance at $43,966.31.
LINK/USD
Chainlink (LINK)
has thrice turned down from the $13.28 levels since Sep. 6 but the
positive sign is that the bears have not been able to sink the price
below the trendline, which shows buying at lower levels.
LINK/USD daily chart. Source: TradingView
If
the LINK/USD pair again rebounds off the trendline, the bulls will make
one more attempt to push the price above $13.28. If they succeed, the
pair is likely to pick up momentum and rally to the downtrend line.
This level is again likely to act as a resistance but if the bulls can push through it the pair could rally to $17.7777.
However,
if the bears sink the price below the trendline, it will suggest
weakness, which could result in a drop to $8.908. Such a move will be a
huge negative and it will hurt sentiment.
LINK/USD 4-hour chart. Source: TradingView
The
4-hour chart shows that the bears are aggressively defending the $13.28
levels but the positive sign is that the bulls have not allowed the
price to dip below the $11 level.
If the pair rebounds off the
current levels or from the trendline, the bulls will make one more
attempt to push the price above the $13.28 resistance. If they succeed,
momentum is likely to pick up and a quick move to $15 is likely.
This bullish view will be invalidated if the bears sink and sustain the price below the trendline.
source link : https://cointelegraph.com/news/top-5-cryptocurrencies-to-watch-this-week-btc-bnb-neo-yfi-link
