In trading, selling a position is as important as buying it at the right time. Therefore, the big question that could be troubling traders is whether or not Bitcoin (BTC) price will enter a bearish phase or will the bull run continue after this week’s pullback.
PlanB, the creator of the popular Bitcoin stock-to-flow model, recently tweeted that the crypto bull run has only started and is “nowhere near the end of it.”
PlanB is not the only voice that is hugely bullish on Bitcoin. Mike McGlone, the senior commodity strategist at Bloomberg Intelligence, believes that if previous behavior is considered, Bitcoin’s 2021 peak could be nearer to $400,000.
One of the main reasons that could be drawing institutional investors to cryptocurrencies is the possible debasing of the U.S. dollar. In an interview with Bloomberg, Soros Fund Management chief information officer Dawn Fitzpatrick said the 25% increase in the U.S. money supply over the past 12 months has ensured that Bitcoin no longer remains a fringe asset.
The fund recently participated in the $200 million funding round held by NYDIG and also invested in crypto accounting firm Lukka. This shows that institutional investors are broadening their perspective and are looking at investing opportunities other than Bitcoin.
Let’s study the charts of top-5 cryptocurrencies that may resume their uptrend in the short term.
Bitcoin is currently in a corrective phase and trading inside a descending channel. The strong rebound off the 50-day simple moving average ($52,000) on March 26 shows the bulls continue to accumulate at lower levels.
The bears may mount stiff resistance near the resistance line of the channel but if the bulls can push the price above it, the BTC/USDT pair could once again challenge the $60,000 to $61,825.84 resistance zone.
A breakout of this zone could signal the start of the next leg of the uptrend that has a target objective at $71,112.06. The 20-day exponential moving average ($54,820) has started to turn up and the relative strength index (RSI) is sustaining in the positive zone, suggesting that the bulls are trying to assert their supremacy.
Contrary to this assumption, if the price turns down from the resistance line of the channel, the bears will try to sink the pair below the 50-day SMA. If they succeed, the pair may drop to the support line and a break below it could start a deeper correction to $43,006.77.
The 4-hour chart shows the relief rally is facing stiff resistance near $56,500. If the price turns down from the current level, it could drop to the 20-EMA and then to $54,000.
A strong bounce off this support could eventually form an inverse head and shoulders pattern that will complete on a breakout and close above $56,618. This setup has a target objective at $63,339.98.
On the contrary, a break below $54,000 will suggest weakness and a lack of buyers at higher levels.
Klaytn (KLAY) has been in a strong uptrend since mid-February. The altcoin recently completed a minor correction as the bulls purchased the dip to the 20-day EMA ($2.76) on March 26, suggesting the sentiment remains positive.
The bulls are currently attempting to resume the uptrend by pushing the price above the all-time high at $3.50. If they succeed, the KLAY/USD pair could rally to $4.86. The upsloping moving averages and the RSI in the overbought zone suggest the path of least resistance is to the upside.
This view will invalidate if the price turns down and breaks below the 20-day EMA. Such a move will suggest a possible change in sentiment. The first support is at $2.58 and a break below this level could start a deeper correction.
The 4-hour chart shows the moving averages have completed a bullish crossover and the RSI has jumped into the overbought zone, suggesting that bulls have the upper hand. The momentum could pick up further if the bulls can push and sustain the price above the overhead resistance at $3.50.
Even if the price turns down from $3.50 but finds support at the 20-EMA, it will suggest that the sentiment remains bullish. A strong rebound off this support will increase the possibility of the resumption of the uptrend.
Conversely, a break below the moving averages could pull the price down to the critical support at $2.60.
VeChain (VET) is in a strong uptrend. The altcoin bounced off the 20-day EMA ($0.078) on March 25, indicating the sentiment is positive and the bulls view the dips as a buying opportunity.
Both moving averages are sloping up and the RSI is close to the overbought territory, suggesting the path to least resistance is to the upside. The long wick on the March 27 candlestick shows the bears are trying to defend the overhead resistance at $0.098.
However, the bulls have not allowed the bears to establish their supremacy. If the buyers can drive the price above $0.098, the VET/USDT pair could resume the uptrend. The next target level on the upside is $0.136.
This bullish view will invalidate if the price turns down from the current levels or the overhead resistance and breaks the 20-day EMA. Such a move could pull the price down to the 50-day SMA ($0.059).
The 4-hour chart shows the bears are defending the $0.095 level while the bulls are buying on dips to the moving averages. If the bulls can thrust the price above $0.095, it will complete an inverse head and shoulders pattern, which has a target objective at $0.114.
Conversely, if the bears sink and sustain the price below the moving averages, a drop to $0.076 is possible. A break below this support could signal the start of a deeper correction.
Solana (SOL) had formed a bearish descending triangle pattern, which would have completed on a break and close below $11.90. However, that did not happen. The bulls aggressively purchased the dip to the $11.90 support on 26 March and pushed the price above the downtrend line on March 27, invalidating the bearish setup.
The failure of a bearish pattern is a bullish sign because it traps several aggressive bears who initiate short positions in anticipation of the completion of the pattern. When the pattern invalidates, the bears rush to cover their positions resulting in a short squeeze.
Sustained buying from the bulls has propelled the price to a new all-time high today. If the bulls can sustain the price above $18.20, the SOL/USDT pair may rally to $24.84.
On the contrary, if the price turns down from the current level, a drop to the 20-day EMA ($14.60) is possible. A strong rebound off this support will suggest accumulation by the bulls at lower levels and may enhance the prospects of the resumption of the uptrend.
The 4-hour chart shows a sharp rally from $12.30 to a high at $19.26. This has pushed the RSI into overbought territory, suggesting the pair could be vulnerable to a pullback in the short term.
If the bulls can sustain the price above $18.20, it will suggest the resistance has flipped into support and the uptrend may resume.
This bullish view will invalidate if the bears sink the price below the 20-EMA. Such a move could keep the pair range-bound for a few days.
Kusama (KSM) is in a strong uptrend. The recent dip to the 20-day EMA ($381) on March 25 was purchased aggressively, as seen from the long tail on the day’s candlestick. This shows strong demand on every minor dip as traders expect the rally to extend further.
The KSM/USDT pair rose to a new all-time high on March 27 but the bulls are facing stiff resistance at higher levels as seen from the long wick on the day’s candlestick. The pair has formed an inside day candlestick pattern today, indicating indecision among traders.
If the bulls can push and sustain the price above $505.33, the pair could extend its up-move to $583.
The pair has not broken and stayed below the 20-day EMA since Jan. 14. Therefore, traders can watch this level carefully because a break and close below it will suggest that the bullish momentum has weakened.
The 4-hour chart shows the bears are aggressively defending the $490 to $505.33 resistance zone as the price has repeatedly turned down from it. However, the positive thing is that the bulls have not given up much ground. A breakout and close above $505.33 could signal the resumption of the uptrend.
Conversely, if the bears sink the price below the moving averages, it will suggest profit-booking by traders. That could pull the price down to $370 where buyers may again step in.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Reef Finance’s Schedules Mainnet Release for May, Promises Polkadot Integration
Reef Finance has announced that its Substrate-based mainnet will see the light of day in May 2021. Called Reef Chain, it promises to “make DeFi easy” by enabling developers to use a highly scalable and fully EVM-compatible network that’s integrated into the Polkadot ecosystem.
Reef Chain Coming in May
Reef Finance is a cross-chain DeFi operating system allowing traders to access liquidity from centralized and decentralized exchanges through its smart liquidity aggregator and yield machine. The project outlined the date for its long-anticipated mainnet launch in a press release shared with CryptoPotato.
According to it, Reef Chain will be launched next month after finishing the final checks of the current Maldives testnet. The precise date will “depend on the result of the rigorous tests being conducted right now, though the team is confident that they will be completed soon.”
Upon its release, Reef Chain will enable DeFi developers to produce scalable and EVM-compatible systems integrated into the Polkadot ecosystem. Reef’s new product will be rolled out as a standalone blockchain based on the Substrate framework. This feature will simplify the integration to the Polkadot parachain network.
The mainnet’s compatibility with EVM, meaning developers can write contracts in Solidity or Vyper and deploy them on the chain, and its ability to bridge with other blockchains, including Ethereum, should enhance its interoperability features.
No Better Timing
Denko Mancheski, CEO of Reef Finance, outlined Reef Chain’s launch as perfect timing because of the “insatiable” demand for DeFi and the issues he sees with the current ecosystem. More specifically, those are the record-high transaction costs on the Ethereum network and even the struggling lately Binance Smart Chain.
Apart from promising scalability and deeper liquidity integration, Reef Chain is also “committed to helping out developers in their quest to bring their DeFi idea to life.” It plans to do so by enabling them access to Reef’s user base, network partners, investors, exchanges, and media.
“We know the struggles of up and coming developers all too well, and a lot of the time, technical skills are only a part of the equation. By tapping into Reef’s business network, DeFi builders will multiply their chances of success.” – concluded Mancheski.
CEO of a Turkish Crypto Exchange Thodex Reportedly Runs Off With $2 Billion
Nearly 400,000 users of a Turkish cryptocurrency exchange were left out of their accounts without being able to withdraw their funds. The platform’s website has been down for several days, while reports suggest its CEO has already fled the country with up to $2 billion.
Turkish Exchange Does a Rug Pull?
Bloomberg reported yesterday that Thodex, a Turkey-based crypto exchange, has ceased trading, citing an “unspecified partnership transaction.” The founded in 2017 trading platform issued a statement explaining that all services will remain shut down for about five working days. However, the message reassured customers that they shouldn’t worry about their funds.
Approximately at the same time, though, users started to complain about their inability to access their own assets. Some took it to Twitter to exemplify the absurdity of the situation.
A local #Crypto exchange where I’d ~20% of my entire trading capital got rug pulled
-20 days no withdrawal (fiat & crypto)
-Then the website went offline
-Then the CEO run abroad
I’m not broke, but it hurts… Alot
It sucks, Even when u deal with regulated exchanges#Thodex
— Feras_Crypto (will Never DM you First) (@FeraSY1) April 21, 2021
More recent coverages asserted that the exchange’s chief executive officer and founder, Faruk Fatih Ozer, who refrained answering comments before, had fled the country.
Users Alleging of Fraud
Upon the news of Ozer’s alleged escape from Turkey, users of the local exchange hired a law firm to file a complaint against Thodex. Oguz Evren Kilic, representing an unspecified number of Thodex customers, confirmed the development, saying, “we have filed a legal complaint on Wednesday.”
He speculated that the funds on the Turkish exchange could be worth “hundreds of millions of dollars,” keeping in mind that the user base is just shy of 400,000. A prosecutor in Istanbul has reportedly launched an investigation.
According to another report, Thodex’s CEO and founder has run away in Thailand with an estimated amount of roughly $2 billion.
It’s worth noting that Turkish authorities have already taken a steep approach towards the cryptocurrency industry. CryptoPotato informed last week of the country’s latest rule on digital assets, banning users from using them as payment instruments from April 30th.
Chainlink is uniquely placed to play this out in the market
2021 has been a good year for Chainlink, the project growing leaps and bounds over the past few months. What’s more, LINK has continued to build on its foundations from last year, with the altcoin surging up the charts over the past few months. In fact, on the back of the wider market’s bullishness, LINK touched a new ATH on the charts just a few days ago.
At the time of writing, however, the aforementioned bullishness had given way to a wave of corrections, with the altcoin trading at a price level that was 18% away from its ATH.
What does this mean then? Has LINK’s price rally finally exhausted itself? On the contrary, a closer look at factors such as ecosystem-centric developments, metrics, and technical fundamentals would suggest quite the opposite.
The most crucial of these ecosystem-centric developments came to the fore a few days ago when the project released the whitepaper for its next protocol upgrade – Chainlink 2.0. As the DeFi sector’s leading decentralized oracle provider, this is a significant development, especially in light of the inflows that have been moving into DeFi over the past few months.
The whitepaper in question proposed a roadmap of Chainlink’s future, one which sought to address the limitations that were part of the initial whitepaper. Smart contracts with limited functionality, for instance. According to a recent report by OKEx Insights,
“Chainlink 2.0 addresses these limitations by enabling hybrid smart contracts in DONs — allowing blockchain protocols to access off-chain data sources and perform off-chain computations.”
What’s more, 2.0 also seeks to make oracles much more scalable, with the addition of the ability to perform off-chain calculations and the introduction of a “transaction-execution framework for Decentralized Oracle Networks which processes off-chain transactions and oracle reporting.”
Finally, Chainlink 2.0 will also be a step towards strengthening privacy protections on the blockchain network with the addition of confidentiality-preserving adapters and support for confidential layer-2 systems.
Needless to say, this a major update, one that could have major repercussions on the value of LINK on the price charts. However, contrary to expectations, when the paper was first made public on the 15th of April, the altcoin’s market failed to react. In fact, it corrected instead.
Why? Well, because the rest of the market corrected too on the back of Bitcoin’s depreciation and fall below the $60,000-level. In doing so, what can be argued is that LINK’s price is yet to price in the aforementioned development. This means that when the bearish phase passes and consolidation ensues, there is potential for a lot more upside in the Chainlink market.
In fact, it can be hypothesized that LINK, more than most altcoins in the space, is better placed to see more upside in its price action in the near term. This, because despite how it has performed over the past week, LINK’s fundamentals remain pretty strong.
Consider this – According to Glassnode, the top 1% of LINK addresses now hold over 84.44% of the altcoin’s supply, a 3-year high. This finding is a testament to the accumulation trend in the Chainlink market, one that underlines the confidence the market’s whales have in the alt’s long-term credentials.
Further, LINK’s Exchange Outflow Volume (7d MA) also touched an ATH of $3,753,855.00 recently, with the same suggesting that more and more people are now moving their crypto-assets off exchanges to HODL, with these unlikely to be sold anytime soon.
Here, it’s worth noting that in the past, whenever this metric has risen, the altcoin’s value has fallen on the charts immediately after. However, LINK’s price has also touched higher highs whenever recovery has ensued, meaning, this could be a sign to buy in.
Finally, the number of active LINK addresses also surged to a 1-month high in the last 48 hours, despite the general market bearishness another sign of there being a lot of optimism associated with the alt’s price performance.
It’s no wonder then that many in the community expect the cryptocurrency to reignite its rally in the near term, especially since traditionally, the cryptocurrency has maintained a lower correlation with the king coin, when compared to the likes of Ethereum and Litecoin. This, coupled with its strong fundamentals, might allow LINK to surge again, independent of the rest of the market.
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