In this week, Mike Alfred, CEO of Digital Assets Data, told Cointelegraph that major investors are “skeptical of Bitcoin and the ecosystem.”
However, Alfred believes this “skepticism and disbelief” will pay off for Bitcoin (BTC) because when “traditional people capitulate, their customers and partners will force them to get involved at significantly higher prices”.
While Bitcoin has struggled to initiate a sustained uptrend in the past few weeks, some Altcoins and tokens in the DeFi space have been in a strong uptrend. This shows that traders’ attention has turned away from Bitcoin.
Daily insight into market data for cryptocurrencies. Source: Coin360
Pantera Capital founder and CEO Dan Morehead believes the DeFi space will overtake Bitcoin and grow around 100 times over the next five years.
Long term, Most analysts are very optimistic about the crypto space, but what can traders expect in the coming days?
Let’s take a look at the cryptocurrencies that could offer short-term trading opportunities and identify the critical levels in each one.
BTC / USD
Bitcoin completed a bullish inverse pattern of the head, shoulders, and shoulders on July 27th when it closed above $ 10,500 and normally The price retests the breakout levels of such reversal patterns.
Daily chart of the BTC / USD pair. Source: TradingView
Under ideal conditions Price shouldn’t fall below the neckline of the inverted shoulders, head, and shoulders pattern, but the trade is far from ideal.
Although the bears dragged the BTC / USD pair under the neck on September 3rd, there hasn’t been much subsequent selling, suggesting the bulls are buying at lower levels. However, that purchase will be exhausted when the price tries to climb above the $ 10,500 level.
Because of this, the pair is currently stuck in the $ 9,835-10,625 range. After the bears failed to cut the price below the range on September 8th, the bulls attempted to push the price above general resistance today but failed.
The 20-day exponential moving average ($ 10,719) is just above the area’s resistance, so bears are likely to be aggressively defending it.
However, If the bulls push the pair above the 20-day EMA and hold the higher levels for three days, it suggests the correction has ended. This could result in a retest of $ 12,460. If this resistance is exceeded, the uptrend is likely to resume.
This bullish view will be invalidated if the pair breaks down and stays below the USD 9,835 support.
BTC / USD 4 hour chart. Source: TradingView
The 4-hour chart shows the bears are aggressively defending the resistance at $ 10,625. However, unless they lower the price below the $ 10,200 support, the bulls will again attempt to clear the upper resistance of the area.
If successful, aggressive traders are likely to step in, which could result in a quick switch to $ 11,400 and possibly $ 12,000.
Contrary to this assumption If the bears pull the price below the $ 10,200 support, a drop to $ 10,000 and then to $ 9,835 is possible.
BNB / USD
While most of the major cryptocurrencies are targeting a low point, Binance Coin (BNB) has resumed its uptrend and hit a new 52-week high, which is a sign of strength.
Daily chart of the BNB / USD pair. Source: TradingView
Although the Relative Strength Index was showing bearish divergence, the sharp move on September 12th invalidated this bearish statement.
Currently, the BNB / USD pair is facing strong resistance at the USD 32 level. However, if the bulls do not allow the price to drop below the critical support of $ 27.1905, the test of $ 32 will likely be repeated. A break above this resistance could bring the price to $ 38.
Contrary to that assumption, it suggests that the current move may have been a bullish trap if the bears cut the pair below $ 27.1905.
4-hour chart of the BNB / USD pair. Source: TradingView
The bears are aggressively defending $ 32 levels, as indicated by the long bearish candle on the 4-hour chart. However, The positive sign is that the bulls don’t panic and keep buying the dip.
Now they will try again to push the price above the USD 32 resistance. If successful the momentum is likely to accelerate, but if the price falls back below $ 32 the pair could stay within reach for a few days.
NEO / USD
The bears’ failure to move and hold NEO below the breakout level of $ 16.72441 attracted buying in the bulls, pushing the price to $ 21.97869 today.
NEO / USD daily chart. Source: TradingView
The bears are aggressively defending the resistance zone of $ 22-22.82612, however If the NEO / USD pair bounces off the 20-day exponential moving average ($ 18.54) the bulls will try again to push the price above the resistance zone.
If they are successful, the next stage of the upward move will likely begin. There is minor resistance at $ 25.23 above which momentum is expected to accelerate.
However, If the bears cut the price below the 20-day EMA, the pair could fall to $ 16.72441. A pause and a close below this support will be very negative.
NEO / USD 4 hour chart. Source: TradingView
Failure to break the $ 22 level could have resulted in profit posting on short-term bulls. This has brought the price below the 20 EMA.
However, if the bulls can hold the price above $ 19.27244 (Fibonacci retracement level of 50%), another attempt to remove the overhead resistance will likely be made.
A break below the $ 19.27244 – $ 18.63376 support could weaken momentum and lower it to $ 16.72441.
YFI / USD
The correction in Yearn.finance (YFI), which began on August 31, found support near $ 21,345. This was the 50% Fib retracement level for the entire period from $ 3,000 to $ 39,690.
YFI / USD daily chart. Source: TradingView
Repeated attempts by the bears to break below the USD 21,345 support failed and the range narrowed between September 5th and 8th, suggesting indecision between bulls and bears.
This uncertainty was resolved with a strong uptrend on September 9th, indicating that the bulls had reaffirmed their dominance.. The target for this next phase of the uptrend is $ 46,632.46 and the psychological resistance is $ 50,000.
However, The bears are trying to stop the rally at $ 43,966.31. If they can bring the YFI / USD pair below the 50% fib retracement level from the final leg of the rally at $ 31,011.37, The momentum is likely to decrease.
The developing bearish divergence in the Relative Strength Index (RSI) should be viewed with caution. However, if the pair rebounds from the USD 34,068.74 to USD 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 the pair below the 20-day exponential moving average (EMA), suggesting that short-term momentum has subsided.. Next downside support is $ 31,011.37.
If the pair rebounds sharply at $ 31,011.37, the bulls will make another attempt to push the price above the overhead resistance at $ 43,966.31.
LINK / USD
Chainlink (LINK) has been three times lower than the $ 13.28 level since September 6, but the positive sign is that the bears have not been able to bring the price below the trendline, indicating that they are buying at lower levels. .
LINK / USD daily chart. Source: TradingView
If the LINK / USD pair rebounds from the trendline, the bulls will make another attempt to push the price above $ 13.28. If successful, the pair is likely to gain momentum and move towards the downtrend line.
This level is likely to act as resistance again, but if the bulls get past it the pair could rebound to $ 17.7777.
However, if the bears pull the price below the trendline, it indicates weakness that could result in a fall to $ 8.908. Such a step will be very negative and hurt the mood.
LINK / USD 4 hour chart. Source: TradingView
The 4-hour chart shows that the bears are aggressively defending $ 13.28 levels, but the positive sign is that the bulls did not allow the price to drop below the $ 11 level.
If the pair recovers from current levels or trendline, the bulls will make another attempt to push the price above the resistance at $ 13.28. If they are successful, The momentum is likely to pick up and likely move quickly to $ 15.
This bullish view will be invalidated if the bears sink and keep the price below the trendline.
The views and opinions expressed here are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risks. You should do your own research when making a decision.