Interest in Crypto Constantly on the Rise — Price Analysis, 14 Sep 2020
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Interest in cryptocurrencies is constantly increasing. In August, the trading volumes on crypto exchanges went up by 75%, according to data by The Block.
Last month, the spot crypto trading volume reached $191.2 billion. In July, this figure was $109.3 billion:
One of the reasons behind the growing interest in cryptocurrencies is the fact that the Internet needs its own currency. And Bitcoin is its best implementation, according to Twitter CEO Jack Dorsey:
However, other crypto enthusiasts think that some alternative coins have bigger potential than Bitcoin. For example, Dan Morehead, CEO of Pantera Capital, believes that DeFi will outperform Bitcoin in the next five years. In a recent interview for Cointelegraph, Morehead stated:
“ t’s much more likely that the entire DeFi space goes up a 100x over the next five years than Bitcoin.”
The digital currency market has been fluctuating sideways in the past few days as most of the top cryptocurrencies have been consolidating in a relatively broad range. However, the current week starts with a red wave for the crypto market. At the time of writing, according to Coin360.com, one Bitcoin costs €8,748.64 (-1.69%), one Ethereum — €310.39 (-5.15%), and one Litecoin — €40.32 (-5.92%):
Now let’s have a look at the price charts of the major cryptocurrencies against the euro.
BTC/EUR
In the daily chart (1D), BTC/EUR is consolidating at the level of the lower line of the Descending Triangle (S1 or approximately €8,700 per one digital coin) that formed in the summer of 2019:
In our estimation, if Bitcoin is not able to bounce off the current support level (S1), it may drop to the level of the previous local low (S2 or approximately €7,984 per one digital coin), receive solid support, and after that, it may rebound.
That’s why if the price of BTC falls below S1, but remains above S2, we will open a long position if a buy signal occurs.
ETH/EUR
In the daily time frame (1D), ETH/EUR has already received initial support within the range of the previous local highs and that’s why it’s trying to resume the uptrend:
We would like to outline that the support range (or the range of the previous local highs) is approximately between the levels of €245 and €285.
According to the technical analysis theory, many conservative traders will wait for a second test of the support range, and, in case of a price rebound, they will enter the market by opening long trades.
YFI/USD
Now let’s have a look at Yearn.Finance (YFI) — one of the best performers for the last week.
Yearn Finance is a suite of decentralized finance (DeFi) products focused on creating a simple way to generate high risk-adjusted returns for depositors of various assets via best-in-class lending protocols, liquidity pools, and community-made yield farming strategies on Ethereum, according to public info on the site.
While most of the major cryptocurrencies have been under pressure since the beginning of September, some of the DeFi representatives (such as YFI) have been able to reach new all-time highs, which is a sign of strength for the decentralized finance sector:
As seen in the chart above, YFI/USD has been able to surpass the recent local high and to mark a new all-time high (ATH) at a level close to $44,000 per one digital coin. The latest rally of YFI has coincided with its Coinbase listing.
Although the hype in the DeFi sector may continue, we would like to share our point of view that, if in the next few days the bulls cannot defend the psychological level of $40,000, a new correction may start, a panic may occur, and the price of YFI may sink very fast below the psychological level of $30,000.
Conversely, if the bulls can sustain the bearish pressure, then YFI/USD will attempt to reach its ATH again, or the level of approximately $44,000.
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The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex’s content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.
Originally published at https://bitvalex.com.
