Ethereum Stuck Below $400: Here’s What Could Trigger A Fresh Rally

Ethereum struggled to continue higher and declined below $400 against the US Dollar. ETH price is consolidating losses and it must surpass $395 for a fresh rally.

• ETH price corrected lower below the $400 and $392 support levels against the US Dollar.
• The price is trading near the $385 zone and the 100 simple moving average (4-hours).
• There is a major bearish trend line forming with resistance near $395 on the 4-hours chart of ETH/USD (data feed via Kraken).
• The pair is likely to rally if it clears the $392, $395 and $396 resistance levels.

Ethereum Price is Facing Key Hurdles

This past week, Ethereum started a downside correction from well above $400 against the US Dollar. ETH price even traded below the $392 support level and the 100 simple moving average (4-hours).

A swing low was formed near $373 and ether price started an upside correction after bitcoin’s sharp increase towards $14,000. There was a break above the $380 and $382 levels. The price even climbed above the 23.6% Fib retracement level of the downward move from the $410 high to $373 low.

However, the price seems to be facing a strong resistance near the $392 level. It is close to the 50% Fib retracement level of the downward move from the $410 high to $373 low.

Source: ETHUSD on TradingView.com

The next major resistance is near the $395 and $396 levels. There is also a major bearish trend line forming with resistance near $395 on the 4-hours chart of ETH/USD. A successful break above the $392, $395 and $396 resistance levels is must to start a fresh rally in the near term.

The next resistance is near the $400 level, above which the bulls are likely to aim a retest of the $420 resistance zone in the coming sessions.

More Downsides in Ether (ETH)?

If Ethereum fails to clear the $392 and $395 resistance levels, it might start a fresh downside correction. An initial support on the downside is near the $382 level.

The main support is forming near the $373 low. Any further losses could lead the price towards the crucial $365 support (a multi-touch zone).

Technical Indicators

4 hours MACD – The MACD for ETH/USD is struggling to gain momentum in the bullish zone.

4 hours RSI – The RSI for ETH/USD is currently just below the 50 level.

Major Support Level – $382

Major Resistance Level – $395

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Bitcoin Corrects After Rejection at $14K: Trend Remains Bullish

Bitcoin price traded to a new monthly high at $14,081 before starting a downside correction against the US Dollar. BTC is now approaching the $13,600 and $13,500 support levels.

• Bitcoin extended its rise above the $13,500 and $13,800 resistance levels.
• The price traded as high as $14,081 and settled well above the 100 simple moving average (4-hours).
• There is a key rising channel forming with support near $13,600 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
• The pair could resume its rise as long as it is trading above the $13,600 and $13,500 support levels.

Bitcoin Price Correcting Gains

This past week, bitcoin followed a bullish path above the $13,000 resistance against the US Dollar. The BTC/USD pair broke many hurdles near $13,500 and $13,800 to move further into a positive zone.

It traded as high as $14,081 and settled well above the 100 simple moving average (4-hours). Recently, the price started a downside correction and traded below $14,000 and $13,800. There was a break below the 23.6% Fib retracement level of the upward move from the $13,139 swing low to $14,081 high.

Bitcoin price is now approaching the $13,600 support zone. There is also a key rising channel forming with support near $13,600 on the 4-hours chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

The channel support is close to the 50% Fib retracement level of the upward move from the $13,139 swing low to $14,081 high. On the upside, the $13,800 level is an initial hurdle for the bulls. The main resistance is now forming near the $14,000 level.

A successful daily close above the $14,000 resistance level might open the doors for more upsides. The next stop for the bulls could be $14,400 or even $14,650.

Downsides Could Be Limited in BTC

If bitcoin fails to clear regain strength above the $13,800 resistance, it could correct lower. An initial support is near the channel trend line zone and the $13,600 level.

The next major support is near the $13,500 level. A downside break below the $13,600 and $13,500 support levels could push the price towards the $13,000 support in the near term.

Technical indicators

4 hours MACD – The MACD for BTC/USD is likely to move into the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is still well above the 50 level.

Major Support Level – $13,600

Major Resistance Level – $13,800

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Yearn.finance (YFI) Plunges Back Toward $10,000 Despite 20% Relief Rally

Yearn.finance (YFI) underwent a strong bounce on Friday after the coin hit multi-week lows of $9,800. The cryptocurrency surged around 20% from $9,800 to $11,900 over the span of eight hours.

But unfortunately for buyers of the cryptocurrency, it has continued to decline. Yearn.finance’s governance token currently trades for $10,500, failing to hold the aforementioned highs despite strength in the Bitcoin price.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Yearn.finance Drops Toward $10,000

YFI currently trades for $10,500, down over 10% from the local highs of $11,900.

Market data suggests that this continued sell-off is a byproduct of futures short selling. Mechanism Capital’s Andrew Kang shared the tweet seen below on October 30th, noting that YFI’s recent downward price action has been predicated on the open interest of Binance’s YFI futures market rising. This indicates that investors may be increasingly shorting the asset, resulting in downward price action.

There were also a number of transactions spotted by investors where early YFI adopters deposited large sums of the cryptocurrency into Binance. It is believed that those coins were sold for fiat, resulting in some of the downward price action we are seeing now.

OI on $YFI at new ATHs, surpassing first capitulation at 12k earlier this month

12k-15k liquidity capitulated into high volume at 10ks (same as first capitulation into 12ks

Sell side orderbooks thin

What happens to shorts on a bounce up? pic.twitter.com/Bc03Vhm2Cn

— Andrew Kang (@Rewkang) October 30, 2020

The drop in the price of the Yearn.finance coin comes in the face of positive fundamental trends. Yields offered by the protocol’s Vaults products have begun to move higher as fresh strategies have been activated. Yearn.finance developers are also expected to roll out Vaults V2 shortly, which should further improve the performance of the protocol and fees accrued to YFI holders.

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

Expect Altcoins to Underperform?

While YFI may have fundamentals going for it, they may not be enough to stop the cryptocurrency from underperforming relative to Bitcoin.

Su Zhu, CIO and CEO of Three Arrows Capital, recently stated that Bitcoin rallying rapidly will automatically compress altcoin returns:

“$BTC going up swiftly is not only not bullish for alts but it’s bearish. Reasons for this are myriad but boil down to the fact that money is a coordination game and Bitcoin is the Schelling point; this is independent of how you feel about it, community is literally irrelevant.” 

Analyst Qiao Wang also recently stated that he wouldn’t be surprised to see DeFi coins such as Yearn.finance’s YFI drop further from here.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing

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Yearn.finance (YFI) Plunges Back Toward $10,000 Despite 15% Relief Rally

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Bullish Trend: Chainlink’s Top Investors are Accumulating at a Rapid Pace

Chainlink’s price action has been rather lackluster as of late, with its price lacking a clear trend as it consolidates alongside Ethereum and the rest of the crypto market.

However, there’s a strong possibility that this will soon shift as Bitcoin’s ongoing uptrend will eventually lead to a capital rotation even that causes significant inflows of capital to move from BTC and into higher-risk assets like altcoins.

Once this occurs, LINK will likely be one of the first altcoins to gain some serious momentum due to its tendency to post parabolic movements.

Not only is Chainlink bullish from a technical standpoint, with strong support below $11.00 sparking rebounds with every attempted selloff, but the cryptocurrency also has some fundamental factors playing in its favor.

According to one analytics firm, the top 100 Chainlink holders have been aggressively accumulating at these price levels, providing it with strong buy-side support and showing that large investors are confident that upside is imminent.

Chainlink Continues Consolidating Above $11.00 as Altcoins Struggle to Gain Momentum

At the time of writing, Chainlink is trading up just under 1% at its current price of $11.15. This is around where it has been trading for the past several days.

Overnight, LINK’s price dipped as low as $10.80, but the buying pressure here was significant and stopped it from seeing any intense selloff.

It has been struggling to gain any momentum as of late, and it is becoming closely tied to Ethereum’s price action.

ETH has been guiding most altcoins, so until it catches a tailwind from Bitcoin and pushes higher, there’s a strong chance that Chainlink and most other altcoins will also continue consolidating.

Analytics Firm: Top LINK Investors are Accumulating

Per a recent report from analytics firm Santiment, the top Chainlink holders have been taking the recent consolidation phase as an opportunity to accumulate large positions.

“If this isn’t the depiction of steady accumulation for Chainlink’s top 100 non-exchange whales in the past year, we don’t know what is. LINK’s offline increase in tokens at this rate truly shows confidence in the asset from those with most at stake.”

Image Courtesy of Santiment.

It could be quite a while before Chainlink breaks its current accumulation phase and rallies higher, but when it does, it could see some immense gains that allow it to gain ground against Bitcoin.

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Uniswap, Aave, Synthetix Continue to Slip Lower in Face of Bitcoin Bump

Top coins in the decentralized finance (DeFi) space such as Uniswap’s UNI and AAVE have slipped lower even as Bitcoin inches higher. Most top DeFi coins have dropped approximately five percent in the past 24 hours as per CoinGecko while Bitcoin has gained over 2%. The leading cryptocurrency briefly traded above the pivotal $14,000 resistance level today but has since dropped due to large sell orders in the $14,000 range.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Strong Fundamentals Contadict Drop in Coins Such Uniswap, Aave, & More

The strong decline in the coins of top DeFi players such as Uniswap, Aave, Synthetix, and Yearn.finance is contradicted by fundamentals. The fundamentals of the decentralized finance space have only strengthened over recent weeks and months, confusing investors in the space.

Head of DTC Capital Spencer Noon noted that while top coins are down by over 60% from their highs, the “most important indicators” of the health of DeFi are pushing new all-time highs:

“Despite a month that saw most tokens fall 50% or more, #DeFi is *still* at ATHs with its most important indicators… Don’t listen to the degens who burned out. Phase 2 of this #DeFi bull market will make this summer look like nothing… And yes, I believe burnout played a major factor in the recent DeFi drawdown. Farmers spent 3 months making serious gains but with barely any sleep. When the market naturally corrected, anecdotally many of my farmer friends decided to hit the sidelines out of sheer exhaustion.””

This was echoed by analysts like Jack Purdy of Messari. On-chain trends show that a large amount of capital continues to enter DeFi contracts to be used in the ecosystem.

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

More Losses to Come

Despite this, some fear that more losses are to come for this market due to the losses being seen in Uniswap, Aave, Synthetix, and Yearn.finance.

Qiao Wang, a prominent crypto-asset analyst, recently commented on the matter:

“I constantly update my views and unfortunately it looks like there’s going to be more pain in DeFi. Originally I thought we won’t see an 80–90% crash which is typical of alts because of the level of sophistication of DeFi investors but that thesis is being invalidated.”

He explained that due to the weak performances of top DeFi tokens, other assets pertaining to the space will drop by affinity.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing

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Uniswap, Aave, Synthetix Continue to Slip Lower in Face of Bitcoin Bump

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MicroStrategy’s Bitcoin Bet Reaches Front Page of the Wall Street Journal

One of the biggest Bitcoin stories of the year was the news that MicroStrategy, a business services company, had deployed $425 million into BTC. The move garnered much attention within the cryptocurrency space, with many seeing this as validation of Bitcoin’s store of value properties.

But outside of crypto, few knew about this purchase. The move was widely covered by industry media like NewsBTC, but coverage about this move by mainstream media was somewhat scarce. At least until recently.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Bitcoin Hits Front Page of the WSJ

On Friday morning, the Wall Street Journal published an article covering MicroStrategy’s half-a-billion Bitcoin bet and about the space as a whole. As noted by Su Zhu, CIO of Three Arrows Capital, the story about the investment hit the front page of the Wall Street Journal’s online edition.

front page of WSJ$BTChttps://t.co/zsUIcAMsc2

— Su Zhu (@zhusu) October 30, 2020

While the article was somewhat critical of this move, basing this sentiment around the stagnation of MicroStrategy’s share pre-Bitcoin, many see this as validation of the space. There were likely many Wall Street investors that saw this, along with mainstream investors with subscriptions to the WSJ. It is unclear if this story was printed in the print version of the paper.

This article comes as this space has seen a strong uptick in mainstream media coverage.

CNBC, for instance, has hosted at least four separate TV segments on Bitcoin and cryptocurrencies over the past two weeks. For most of the year, this space barely got a peep on the outlet.

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

Retail Involvement to Drive BTC Above $20,000

Despite this coverage, retail involvement in the Bitcoin space remains minimal. Hans Hague, head of quantitative strategy at Ikigai, recently shared the chart below. It shows that Bitcoin interest as per Google Trends remains at lows, far from the highs seen in 2017’s bull market.

Do you see how it's different this time? This is not the top of a bubble-induced mania, it's orderly and quiet. The next peak in Google Trends will make the last one look like nothing, because it was. #Bitcoin pic.twitter.com/hDsxXiPEC5

— Hans HODL (@hansthered) October 31, 2020

Analysts say that once retail investors enter the space en-masse as they did during the last cycle, prices will shoot past $20,000 easily. How soon this happens, though, remains to be seen.

But with increased coverage and increased institutional interest, it is likely to play out over the coming months or year.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing

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Yearn.finance (YFI) Open Interest Hits an All-Time High as Selloff Continues

Yearn.finance’s YFI token failed to gain any momentum following yesterday’s sharp rebound following a brief dip below $10,000.

The cryptocurrency is now on the cusp of once again breaking below this level, with the immense selling pressure coming about as open interest for the token reaches an all-time high.

Although the sell-side of YFI’s order books are rather thin at the moment, a lack of any intense inflows of capital has perpetuated its recent technical weakness – which is showing few signs of slowing down any time soon.

The governance token’s price is also dipping in tandem with the implementation of a new proposal to redirect the ecosystem’s income towards YFI token buybacks, which is widely expected to boost its price.

Investors don’t seem to care too much, however, as the selling pressure placed on the token has been relentless.

Unless it traps short positions and sees a more sustainable rally in the near-term, there’s a decent chance that significantly further downside is imminent.

Yearn.finance (YFI) Struggles to Gain Momentum as Descent Continues

At the time of writing, Yearn.finance’s governance token is trading down over 6% at its current price of $10,370.

Yesterday, the crypto rallied to highs of $12,000 following a dip to lows of $9,600 set just a few days ago.

This decline marked capitulation, and the subsequent rebound made many analysts suspect that this was a short squeeze that could help mark these lows as a long-term bottom.

However, the decline seen throughout the past day signals that this selloff is not over and that further downside may be seen in the days and weeks ahead.

YFI Open Interest Hits All-Time Highs as Traders Bet on Volatility

Open interest for Yearn.finance’s YFI token is now at an all-time high, which indicates that an explosive move could be right around the corner.

Prominent investor Andrew Kang spoke about this in a recent tweet, explaining that OI is surging following the move towards $15,000 that cleared the upside liquidity.

“OI on YFI at new ATHs, surpassing first capitulation at 12k earlier this month. 12k-15k liquidity capitulated into high volume at 10ks (same as first capitulation into 12ks. Sell side orderbooks thin. What happens to shorts on a bounce up?”

Image Courtesy of Andrew Kang. Source: BTCUSD on TradingView.

Although he seems to believe that this indicates a move higher is imminent, the lack of any short squeeze during yesterday’s relief rally seems to point to immense underlying weakness amongst bulls.

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Bitcoin Could Rally to an All-Time High if It Hits One Key Level

Bitcoin could be on the cusp of posting a move to fresh all-time highs if it can close its monthly candle today above one critical level.

The benchmark cryptocurrency has been caught within the throes of an intense uptrend throughout the past several days and weeks, with each selloff being fleeting and followed by it setting higher highs.

This type of price action shows that it is now in a clear bull market, and the fundamental and technical strength underpinning it at the present moment suggests new all-time highs could be on the table.

One analyst is stating that a monthly close above $13,900 could be all that it takes to rally significantly higher in the days and weeks ahead.

In 2017 during the peak of the bull run, Bitcoin’s price was rejected at $20,000 mid-way through the month, with its monthly candle for December closing below $14,000.

This means that tonight’s monthly candle close could be one of the most significant ones that Bitcoin has ever seen before.

Bitcoin Rallies to Fresh Post-2017 Highs as Bulls Maintain Control 

At the time of writing, Bitcoin is trading up over 2% at its current price of $13,855. This marks a slight decline from its daily highs of $14,100 that were set overnight.

The cryptocurrency has not seen any sustainable declines since this uptrend first began, which is an incredibly positive sign that speaks to bulls’ current strength.

So long as buyers continue absorbing any intense selling pressure, there’s a strong likelihood that upside is imminent.

The key level to watch in the near-term is roughly $13,900, as a daily candle close above this level would allow BTC’s monthly candle to see its highest close ever.

Analyst: Break Above $13,900 Could Send BTC to Its All-Time Highs

Highlighting the importance of breaking and closing above $13,900, one analyst explained that he would not be surprised to see a rally to all-time highs of over $20,000 if Bitcoin’s monthly close takes place above this level.

“Lets close BTC above that green line on the monthly and send it to ATH,” he said.

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

Bitcoin bears have been vying to stop this from taking place, which means that it will require a significant influx of buying pressure in the coming hours for this crucial breakout to occur.

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Expect Bitcoin to Break $14,000 Once Altcoin Bleeding Ends: Analyst

It’s been a brutal past few days and weeks for altcoins despite Bitcoin’s strength. Top digital assets aside from BTC have plunged a handful of percent, even dozens of percent, against the U.S. dollar, even as Bitcoin hits new year-to-date highs.

This divergence has shocked many investors in the space, especially those that entered the altcoin market late this summer. This pain may eventually end, though, an analyst noted. This same individual added that this may coincide with BTC breaking $14,000.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Bitcoin to Break $14,000 Once Altcoin Hemorrhaging Ends

Bitcoin analyst “Light,” who is celebrated by fund managers like Su Zhu of Three Arrows Capital, thinks that Bitcoin could soon break above $14,000 once the market sell-off ends:

“BTC is behaving in an incredibly strong fashion, up 0.9% l24hrs while alts hemorrhage and derisking continues in equities. Expect it to break $14,000 after the bloodletting runs its course.”

BTC is behaving in an incredibly strong fashion, up 0.9% l24hrs while alts hemorrhage and derisking continues in equities.

Expect it to break $14,000 after the bloodletting runs its course. pic.twitter.com/Zxeaq2FIcM

— light (@lightcrypto) October 30, 2020

$14,000 has long been a critical technical level for the leading cryptocurrency. It almost perfectly marked the highs of 2019’s rally, and also is in the vicinity of where Bitcoin closed its yearly candle at the end of 2017. Bitcoin moving above, then closing on a notable time frame on $14,000 will likely suggest the cryptocurrency will move dramatically higher.

Real Vision CEO Raoul Pal recently commented that $14,000 and $20,000 are the only two technical levels stopping new Bitcoin all-time highs.

Analysts assign much more importance to $14,000 than they do to $20,000 due to the amount of trading volume around the former price level.

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

Altcoins to Bounce

Altcoins are expected to bounce once Bitcoin begins to consolidate or distribute and once global markets turn risk-on once again.

The fundamentals of certain altcoins are stronger than ever. Case in point: the total value locked in decentralized finance (DeFi) contracts recently hit a new all-time high above $12 billion, around five times higher than this metric was in June.

Analysts expect these fundamentals to eventually translate into price action in the DeFi market.

Other altcoin sectors have also shown fundamental strength. Though, whether enough this will allow altcoins to outperform Bitcoin remains to be seen.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing

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Ethereum Reaches Bedrock Support Against BTC as Sellers Run Out of Fuel

Ethereum is in the process of trying to reclaim its key $380 support level following a brief dip below it earlier today.

The cryptocurrency has been struggling to gain any momentum despite the intense strength seen by Bitcoin as of late, which is currently grinding up towards its key resistance at $13,800 as buyers maintain full control over its price action.

Although BTC and ETH have been highly correlated in the past, they are now trading fully independent from one another.

This correlation only returns when BTC is showing signs of weakness, which places immense pressure on Ethereum.

The weakness seen by ETH as of late is particularly transparent while looking towards the cryptocurrency’s Bitcoin trading pair.

One analyst is noting that ETH/BTC has now reached a bedrock support level that he has been watching for quite some time. A strong defense of this level could confirm it as a long-term bottom and help catalyze a strong rebound in the days ahead.

Conversely, a break below this level would be dire.

Ethereum Struggles to Match Bitcoin’s Momentum as Bulls Try to Reclaim $380 

Earlier this week, Bitcoin faced a dire rejection at $480 that caused its price to see some immense short-term weakness that has since been erased.

Before this rejection, Ethereum was stable within the lower-$400 region. The subsequent BTC decline to lows of $12,800 caused ETH to reel all the way down to lows of $370.

It is now in the process of trying to reclaim its $380 support level but remains well below its multi-week highs of $420, while Bitcoin is just a stone’s throw away from setting fresh 2020 highs.

It is unclear when or if there will be a rotation of capital out of the benchmark cryptocurrency and back into altcoins.

Trader: ETH Reaches Critical Support Level

One trader explained in a recent tweet that Ethereum has now reached what he describes as a crucial support level on ETHBTC that he has been watching for quite some time.

He said that he is now lightening up on his bearishness and will reassess once the monthly candle closes tomorrow.

“I’ve been short biased (&short) ETH for quite a while now anticipating weakness into the monthly close. That has largely played out. Now that we’re hitting supports on the ETHBTC chart I’m going to lighten up and reassess once the monthly chart has actually closed.”

Image Courtesy of DonAlt. Source: ETHUSD on TradingView.

Unless Bitcoin dives lower in the near-term, there’s a possibility that Ethereum will start bottoming out and recoup some of its recent losses.

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Timing Tops & Bottoms In Bitcoin: Data Suggests New Peak Is Less Than A Year Away

Bitcoin, although a powerful and disruptive financial technology, at its core, is mere mathematics. Its code is what keeps the network operating, its supply hard-capped at 21 million BTC, and much more.

But could that computer code and supply mechanism also help provide clues to when the crypto market tops and bottoms? According to a strange correlation with the asset’s block reward halving and the timing of tops and bottoms, the solution could be nothing more than simple addition and subtraction.

Adding Up All The Reasons The Bitcoin Bull Run Is Here

All signs point to Bitcoin breaking into a new bull market after bottoming now nearly two full years ago. A higher low set this year on Black Thursday during one of the worst selloffs the young asset has ever seen was one half of the equation in confirming a new uptrend.

The other half of the puzzle is a higher high, which Bitcoin this week came just dollars away from setting.

Related Reading | Bitcoin RSI Moves Into Bull Market Territory, Here’s What Happens Next

The cryptocurrency is now trading a few hundred dollars away and declining, however, another higher high this year post-election, or at the start of 2021 is still very likely.

Bitcoin for the first time this week since 2019 entered bull market territory on the weekly RSI – yet another signal that its clear skies again for the crypto asset once it cracks $14,000.

Could crypto tops and bottoms be related to the halving also? | Source: BLX on TradingView.com

Can Math Plus The Halving Subtract The Stress Out Of Timing Crypto Market Tops and Bottoms?

Bitcoin’s bottom is now two years behind us, and even the halving is now in the past. All the necessary ingredients are here for the perfect storm bull market for cryptocurrencies.

But the time distance between those two important events could provide a solution to predicting when the next peak in Bitcoin arrives.

Timing tops and bottoms isn’t easy and should be avoided at all costs. But once the bottom is in, there is a chance of perfectly timing the top, according to one crypto analyst’s striking discovery.

Related Reading | Bloomberg Intelligence Strategist Hints At Bitcoin Bull Run In 2021

They have found that the distance between each Bitcoin bottom and the block reward halving, just so happens to have been nearly the exact distance from the halving to the top (pictured above).

Other crypto analysts fact-checked the data and found it to be within 2% accuracy, suggesting there is possibly credence to the analyst’s speculative conclusion.

If they are correct, that puts the next Bitcoin peak at roughly eleven months away, on October 4, 2021.

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Chainlink’s Parabolic Trendline is Intact, But Analysts Fear a Breakdown

Chainlink has been struggling to gain momentum over the past couple of days, with the ongoing bout of capitulation within the altcoin market, creating far-reaching shockwaves that have impacted LINK.

The crypto is now struggling to hold above its $11.00 support level, and some analysts believe that it could be at risk of seeing further losses if this level is broken.

That said, while looking towards LINK’s BTC trading pair, the cryptocurrency’s parabolic trendline formed throughout the past few years remains fully intact. A break below this, however, could mark the start of a new – and bearish – era for the cryptocurrency.

Where altcoins like Chainlink trend next should depend largely on whether or not Ethereum can gain momentum in the near-term.

ETH has been firmly guiding the altcoin market, but it has been unable to match Bitcoin’s momentum – which has led it to drift lower throughout the past few days.

Bitcoin and ETH have broken their correlation to one another, which means that Bitcoin’s price action in the near-term will do little to provide insight into that of altcoins like Chainlink.

Chainlink Struggles to Find Support as Selling Pressure Ramps Up

Prior to the strong decline seen by altcoins over the past couple of days, Chainlink was flashing some signs of strength as its price climbed above $12.00

It has since broken below this level and is now at risk of also breaking below $11.00.

At the time of writing, Chainlink is trading down just over 2% at its current price of $11.00. This is around the price at which it has been trading throughout the past few days and weeks.

If it breaks below $11.00, it could see a capitulatory decline driven by panic selling.

Analyst: LINK Defends Parabolic Trendline, But Risk of Downside Remains

While sharing his thoughts on where the aggregated market might trend in the near-term, one analyst explained that its multi-year parabola against its Bitcoin trading pair is still intact.

The same analyst also said that it does appear to be entering a corrective phase on a lower time frame, which could mean that some downside is imminent.

“LINK Parabola still intact. Macro structure is bullish until proven otherwise. Ltf structure seems corrective,” he said while pointing to the below chart.

Image Courtesy of il Capo of Crypto. Source: LINKBTC on TradingView.

The coming few days should provide investors with greater insights into where altcoins like Chainlink will trend in the near-term. Any further Ethereum downside could place some serious pressure on LINK.

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Yearn.finance Could Rally to $14,000 Following Sub-$10,000 Dip

Yearn.finance’s YFI token saw a sharp capitulatory decline overnight that caused it to post some massive losses. This decline briefly sent it below $10,000, which is a level that had not been broken below since weeks before its parabolic move to $45,000 started.

This decline has come about amidst a capitulatory bout of panic selling amongst altcoins, as many are trading down 20% or more today while Bitcoin continues consolidating.

Part of this weakness may stem from Ethereum’s intense underperformance, as it is now trading below $380 while BTC pushes past $13,300.

YFI has been able to get some relief, however, as the break below $10,000 was rapidly absorbed and followed by a sharp upswing that sent it to highs of $11,500.

It now appears to be consolidating as its bulls look to build a strong base of support around its recent lows.

One analyst is noting that this range reclaim is bullish and could indicate that a push towards $13,000 or $14,000 is imminent in the near-term.

This would be a serious rebound that helps negate some of the technical weaknesses resulting from this latest decline.

Yearn.finance Price Craters Below $10,000 During Brief Overnight Selloff

At the time of writing, Yearn.finance’s YFI token is trading up just over 2% at its current price of $11,000. This is around where it has been trading all morning following its brief decline to lows of $9,750.

The selling pressure it faced last night was intense and likely came about due to a mixture of panic selling and capitulation.

Where it trends next will undoubtedly depend largely on whether or not bulls can guard against another decline.

Analyst: YFI Could Rally Towards $14,000 Following Bullish Range Reclaim

While sharing his thoughts on Yearn.finance’s price action, one analyst explained that he is watching for YFI to rally up towards $13,000 or $14,000 following a bullish range reclaim.

He pointed to this technical development in a recent tweet, noting that a failure to print a sharp upwards movement would be grave.

“YFI: Range reclaim – might get a long back upto 13-14k. Blue arrow trigger, otherwise doesn’t look good – price capped nicely within the down trending channel,” he said.

Image Courtesy of TraderXO. Source: YFIUSD on TradingView.

Yearn.finance’s YFI has become a benchmark for the DeFi sector, so a strong rebound could create shockwaves across the market that allow other altcoins to rally in tandem.

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Ethereum Approaches “Do or Die” Level Against BTC, Analyst Claims

Ethereum spent most of 2020 outperforming Bitcoin by a large margin, thanks to the burning hot DeFi trend and the related tokens’ reliance on the second-ranked crypto asset.

But since things have reversed and Bitcoin has gone on its own individual run, on the ETHBTC trading pair, Ethereum has reached a point of “do or die” according to one crypto analyst. Here are the key levels and factors to look for in the weeks ahead to see if the top altcoin was able to withstand the force of a BTC bull run, or if it gets chewed up and spit out as Bitcoin has done so recently.

Ethereum Approaches Do Or Die Level Against On BTC Trading Pair

Bitcoin has been surging for the last few weeks while altcoins have struggled to come anywhere near close to the top crypto asset’s bullish momentum.

A surge of buying after a key breakout combined with sudden PayPal support and a massive increase of corporations adding BTC to their treasure reserves.

Related Reading | Ethereum Lagging Behind Bitcoin Could Demonstrate Altcoin Weakness

With so little BTC supply to go around, the buying has resulted in an explosive move. And with Bitcoin potentially heading off onto a new bull run, crypto investors have been dumping their altcoins and FOMO buying the leading cryptocurrency by market cap.

It has even put a major damper on Ethereum, which spent the rest of the year outperforming Bitcoin by a mile. But with DeFi floundering itself, there’s nothing left to prop up the top altcoin any longer. And its left Ethereum on the ropes against Bitcoin, and at a “do or die” level on the ETHBTC pair.

Its do or die for the top altcoin according to il Capo of Crypto via Twitter | Source: ETHBTC on TradingView.com

How A Bitcoin Bull Run Could Leave Altcoins And DeFi Bleeding Out

According to a crypto analyst and their interpretation of the ETHBTC chart, the top altcoin is facing a “do or die” level against Bitcoin.

If Ethereum falls further, the altcoin could dive on the USD pair, while Bitcoin keeps on racing toward all-time highs. Other crypto analysts have called for such a scenario to play out any day, and the theory is presently being proven correct.

Related Reading | Ethereum Matching Market Psychology Roadmap Leads To Bull Run Next

BTC dominance, a crucial metric weighing Bitcoin against the rest of the crypto market cap, also points to prolonged altcoin weakness against the most dominant crypto.

Unfortunately for Ethereum, most takes suggest that the altcoin will choose “die” against Bitcoin for the rest of the year, but in early 2021, the altcoin season that follows will be something not to be missed.

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Career Trader Calls Yearn.Finance A “Strong Buy” If It Hits $7K

The DeFi trend is finally dying down, and it has left even the once hottest and most hyped coins reeling in the wake. Yearn.Finance, for example, was once trading at over $40,000 and four times the price of Bitcoin. Now, it could be headed for just half a BTC per YFI token, where one career trader claims the altcoin will be a “strong buy.”

Here’s how the once piping hot DeFi token might get there.

Yearn.Finance Carnage Continues, But Will Make An Ideal HODL Eventually

Yearn.Finance was one of the hottest tokens of the summer of DeFi. FOMO only recently began to fizzle as the summer’s sizzle started to cool off, and investors began to worry about the upcoming election and began moving profits into the now trending Bitcoin.

The token that was once worth four times as much as one full BTC, is now trading nearly on par with the leading cryptocurrency by market cap. In fact, the DeFi coin with a 30,000 token supply that was previously worth over $40,000, is now trading $2,000 below Bitcoin, and it could fall much lower, according to career trader Bob Loukas.

Related Reading | DeFi Hangover: Yearn.Finance Falls Nearly 20% From Weekend Highs

Loukas shares his calls and ideas on crypto Twitter, and today posted a chart of YFIUSD that shows the ominous head and shoulders top that anyone who is interested in the asset at all should have seen by now. Except rather than talking trash about the falling Yearn.Finance, he says it’s a “strong buy.’

The only problem with Loukas’ statement is that the strong buy occurs when the token trades at $7,000 per YFI.

Yearn.Finance falling wedge retest and math matches Loukas' target | Source: YFIUSD on TradingView.com

YFI Charts, Patterns, And Math Create Roadmap To Loukas’ Strong Buy Support

Yearn.Finance has already fallen 78% from peak to the current bottom, so a drop to $7,000 would likely shock early investors who expected the scarce asset to charge toward $100,000, not $10,000.

After the high of $44,000, Yearn.Finance plummeted to the current low of $9,600 but is now trading around $11,200. The DeFi token’s volatility makes Bitcoin seem like a smooth-riding Cadillac compared to a beaten-down destruction derby car.

The peak to the neckline of the head and shoulders structure that acted as the top of the uptrend measured as a 52% collapse. After the neckline was broken, YFI went crashing lower by another 52%.

Related Reading | Coinbase Users Lose $25K On Yearn.Finance Since DeFi Token’s Debut

When assets reverse, they tend to reach around 50% – also the 0.5 Fibonacci level – of the previous advance before another leg down.

The current reversal and break out from a potential falling wedge pattern could take Yearn.Finance 50% of the way, or potentially all the way back to the neckline. If the DeFi coin falls back from the halfway point, another 52% decline would fall exactly where Bob Loukas points to as a “strong buy” for YFI.

Interestingly, the complete downtrend from $44,000 to just $7,000 would result in a full 84% decline – roughly the same exact retracement as Bitcoin after it peaked at $20,000.

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Altcoins Bleed Out as Bitcoin Consolidates, But This Trend May Soon Shift

It has been a rough past few days for altcoins, with many posting capitulatory losses as Bitcoin continues struggling to garner any sustained upwards momentum that can send it past its $13,800 resistance.

Despite the lack of momentum seen by BTC, it remains incredibly strong from a technical perspective, and there’s no real justification for today’s altcoin bloodbath beyond simply investors capitulating.

Overnight, DeFi darling Yearn.finance’s YFI governance token plunged below $10,000 for a brief period, marking a massive descent from its multi-month highs of $45,000.

There are countless other DeFi and non-DeFi related altcoins that have posted 10%+ losses over the past 24 hours, with this coming about during an otherwise quiet day in the market.

Because there’s no real impetus for this movement, one analyst is now noting that the coming few days could provide an ideal entrance opportunity into some embattled altcoins.

This indicates that he expects them to enter oversold territory shortly, which could mean that strong upside is right around the corner.

Bitcoin Consolidates as Altcoins Bleed Out

At the time of writing, Bitcoin is trading down just over 1% at its current price of $13,300. This is around the price at which it has been trading throughout the past few days.

Earlier this week, it was able to rally as high as $13,800 before facing a rejection, highlighting the significance of the resistance sitting at this level.

Although Bitcoin has been consolidating at relatively high prices in the time following its latest rejection, Ethereum and many other altcoins have still witnessed massive inflows of selling pressure.

ETH broke below $380 earlier today, while YFI plunged beneath $10,000. Many other DeFi-related altcoins like SNX are trading down 15% or more – and it remains unclear as to why this move is taking place.

Analyst: Aggressive Altcoin Selloff Could Provide Glorious Buy Opportunity

While speaking about the intensity of the recent altcoin selloffs, one pseudonymous analyst explained that this appears to be driven by panic selling.

As such, he notes that the week ahead could provide some decent buy-in opportunities for Bitcoin’s smaller counterparts.

“Very aggressive down trend in DeFi, a lot of sell volume came in today, seems like panic selling is really settling in. For the least amount of pain and waiting, you could wait until the base forms, but for glory, im guessing you could try your luck in the coming week.”

Ethereum has been largely guiding the altcoin market as of late, which means that an impulse higher for ETH could be what helps put an end to the ongoing altcoin bloodbath.

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Bitcoin Hitting $20,000 in Early 2021 is “Highly Unrealistic:” Analyst

Bitcoin has every likelihood of touching its previous record high of $20,000. But, one should not expect it to happen in early 2021, says a TradingView analyst.

The pseudonymous entity, operating under the alias of ‘XForceGlobal,’ said the significant upside move is “highly unrealistic,” given the public interest in Bitcoin is nowhere near the Google trend levels of late 2017/early 2018.

Additionally, the market lacks the hype that propelled the cryptocurrency to $20,000 earlier. That is visible in the lack of fresh capital entering the Bitcoin space in 2020. Nevertheless, bids are growing higher due to supportive fundamental and technical catalysts, mainly concerning the devaluation of the US dollar.

“I believe more and more that the market lengthening cycle is at play here,” the analyst added. “And unless your neighbors are talking about buying Bitcoin, this market is currently playing with ‘recycled’ money.”

An analysis of the keyword ‘Bitcoin’ shows a comparatively lower public interest than in 2017. Source: Google Trends

An analysis of the keyword 'Bitcoin' shows a comparatively lower public interest than in 2017. Source: Google Trends

Bitcoin rose by more than 200 percent after crashing to $3,858 in March 2020. Its rally borrowed cues from the Federal Reserve’s decision to keeping interest rates near-zero and to purchasing government and corporate debt “as long as needed.” Furthermore, an injection of $2 trillion via US Congress’s coronavirus relief bill into the economy further improved the cryptocurrency’s upside bias.

Mature Asset in Making

XForceGlobal highlighted the negative correlation between Bitcoin and the US Dollar Index (DXY), a barometer to measure the greenback’s strength against top foreign currencies, noting that the latter is driving the former’s “real price action.”

The analyst also spotted Bitcoin in a so-called “growth cycle phase,” wherein the cryptocurrency’s investors have become more mature and accustomed to its style of trends. There is no “dumb money” in the market that could shoot the Bitcoin price from $13,000 to $20,000 in just one week, as was the case of the 2017 and 2019 bull runs.

Comparing Bitcoin’s recent bull runs. Source: BTCUSD on TradingView

Comparing Bitcoin's recent bull runs. Source: BTCUSD on TradingView

“Bitcoin’s 202 bull run creates a series of “HIGHER LOWS,” which is extremely healthy for the overall picture,” he added. “It may be good for “buying the dips.”

Bitcoin Cup and Handle

The analyst then presented a super-bullish outlook for Bitcoin that may also see a period of a bloodbath in the market.

Dubbed as Cup and Handle, the technical pattern comes to life after an asset’s price moves sharply in an upward direction. After that, the market begins to sell-off, causing the price to retrace downwards slightly. That forms the ‘Cup’ section of the pattern.

As the price continues trading upward, it retraces once again – this time more gradually as it forms the ‘Handle’ section of the pattern. Finally, the price breaks out to the upside.

Bitcoin Cup & Handle pattern, as highlighted by XForceGlobal. Source: BTCUSD on TradingView.com

Bitcoin Cup & Handle pattern, as highlighted by XForceGlobal. Source: BTCUSD on TradingView.com

That said, the analyst expected Bitcoin to fall lower to complete the ‘Handle’ section. A breakout above the overall pattern would put the cryptocurrency en route to $20,000 – slowly and steadily.

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New Cardano Roadmap Puts March 2021 Date For Goguen Mainet Rollout

IOHK fired up the Cardano community by releasing details of the Goguen roadmap yesterday. After the successful rollout of Shelley, many look to Goguen as the final hurdle before challenging Ethereum on level ground.

The roadmap puts the Goguen mainnet launch at around March 2021. Considering the frequent delays to Shelley, this represents an ambitious but welcome call.

Source: twitter.com

Cardano Gunning For Ethereum

Goguen is a significant leap forward in the capabilities of the Cardano network. With it comes the ability to build decentralized applications and a whole host of other features, including a multi-asset ledger.

Developers, IOHK have gone to great lengths to cater to both technical and non-technical users. This will see the use of a new smart contract language in Plutus. It gives programmers a smart contract platform with functionality built into, or “native” to, the ledger itself.

“It also allows one code base to support both on and off-chain components, improving the coherency and usability of the development experience compared with existing smart contract implementations.”

This contrasts with Ethereum’s ERC-20 “contract standard,” which works through copy-pasting proforma code and modifying it to fit requirements.

There are several advantages to Plutus, including wider interoperability with other smart contracts. But the critical difference is that Goguen allows for smart contracts to be written in different languages. In comparison, Ethereum smart contracts use Solidity only.

As well as that, there’s Marlowe, a high-level domain specific language (DSL) built on top of Plutus. It will enable everyday people with no technical expertise to create smart contracts. Cardano hopes this will cultivate a new class of enterprise-level smart contract development with real-world use.

Who Is Jumping The Ethereum Ship?

IOHK released Goguen’s details via the Cardano Development October Update hosted by Marketing & Communications Director Tim Harrison.

The update included a section on the up and coming ERC-20 converter, which encourages Ethereum ERC-20 projects to port over to Cardano.

During the broadcast, Vukašin Vukoje, the former COO of Tenderly, an Ethereum monitoring platform, demonstrated using the ERC-20 converter. It showed options for converting BAT, DAI, AGI, USDC, and USDT.

“There are three ways in which our partner can convert their tokens. The first one would be by airdropping on the destination network, basically cloning the token. The second one would be by burning the token on the source network and creating one on the destination network. And the third one would be by locking the token on the source network and releasing it on the destination network.”

Source: youtube.com

SingularityNET CEO Ben Goertzel has already spoken about his reasons for moving AGI tokens from Ethereum to other blockchains.

But the real surprise was the inclusion of DAI, USDC, and USDT. What’s more, as stablecoins, does this give insight into Cardano’s DEX ambitions?

The end of Q1 2021 represents a pivotal period in Cardano’s development. Not only is Goguen scheduled for rollout, but IOHK CEO Charles Hoskinson estimates the network will be fully decentralized by then as well.

Source: ADAUST on Tradingview.com

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