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BTC, NEO, XMR, ADA, LINK

September 20, 2020

The total capitalization of the cryptocurrency market rebounded from its September 6 lows near $ 314 billion. It’s difficult to stay above the $ 350 billion mark, however. This shows that higher levels continue to attract sellers.

Bitcoin (BTC) dominance fell from over 68% in mid-May to almost 56% in the first half of this month when DeFi tokens started a strong bull run.

In the last few days, however DeFi assets have been revised sharply, increasing their volatility. This could draw traders’ attention to Bitcoin. It is also possible that Bitcoin’s inability to stay above the $ 11,000 level could have a negative impact on the confidence of altcoin and DeFi token traders.

BTC, NEO, XMR, ADA, LINK
BTC, NEO, XMR, ADA, LINK

Daily look at the cryptocurrency market. Source: Coin360

Daily look at the cryptocurrency market. Source: Coin360

Even if Bitcoin is struggling to find momentum. The good news is that Bitcoin futures trading volume on Bakkt has increased and the average number of whales sending money to exchanges is close to annual lows. This may be due to an accumulation phase of whales and institutional traders.

Indeed, Most major cryptocurrencies do not follow a general trend as the price movement was mainly specific to each coin. This offers us short and long term opportunities. Hence, in today’s list, we’re going to discuss two quick ideas for traders who are bearish in the cryptocurrency market.

BTC / USD

The recovery move in Bitcoin is facing strong resistance near the 50% Fibonacci retracement level of $ 11,147.60. This shows that the bears took advantage of the recovery action to open shorts.

Daily chart for the BTC / USD pair. Source: trade view

Daily chart for the BTC / USD pair. Source: TradingView

If the bears can pull the price below the rising trendline and support at $ 10.625, it is a sign of weakness. If the BTC / USD pair stays below $ 10,625, the chance to retest $ 9,835 increases.

However, If the pair bounces sharply off the support at $ 10.625, this will be the first sign that the correction may have peaked. Trading momentum is likely to accelerate after breaking above the downtrendline.

When the price (UTC time) closes above the downtrend line, the likelihood increases that we will see a rally towards USD 12,460. While there is $ 12,000 resistance, it seems possible that it can be overcome.

4-hour chart for the BTC / USD pair

4-hour chart for the BTC / USD pair. Source: TradingView

The pair is trying to ricochet off the rising trendline andThis suggests that the bulls bought into this support during the collapse. Buyers will now make another attempt to push the price above the $ 11,147.60 resistance.

If the rebound is weak and the bears are causing the pair to dip below the rising trendline, A drop to $ 10,625 could occur. This is very important support for the bulls as sales are likely to increase if this level breaks.

If the pair bounces above $ 10.625, we may see a few days of limited range. The flat moving average on the 4-hour chart shows that there is a balance between supply and demand.

NEO / USD

NEO is currently facing strong resistance at $ 25.23. This shows us that bears are aggressively defending this resistance. However, since it is an uptrend, traders may see dips as the perfect buying opportunity.

Daily chart for the NEO / USD pair. Source: trade view

Daily chart for the NEO / USD pair. Source: TradingView

One immediate support on the downside is at $ 23 and below the next is the 10-day SMA ($ 22.26). If the NEO / USD pair does manage to bounce off any of these supports, it suggests that the bulls are not waiting for a deeper drop to buy. That would be a very positive sign.

If the bulls can push price above the resistance zone between $ 25.23 and $ 25.78923, we could see the uptrend resuming. The next goal on the top is $ 29.

A break below the 10-day SMA is the first sign that momentum is weakening. and a drop below $ 20.9633 indicates a possible change in trend.

4-hour NEO / USD chart

4-hour chart for the NEO / USD pair. Source: TradingView

The 4-hour chart shows that the bulls held the price above the $ 25.23 resistance twice but were unable to stay at the higher levels. This means that the bears will try to stop the run at this resistance.

On the other hand, however The bulls did not allow the price to stay below $ 23. We can argue that buyers are hoarding at every small bathroom.

This could hold the pair between $ 23-25.50 for a few more days. The moving averages have flattened out, suggesting that there is a balance between supply and demand.

XMR / USD

The rebound in Monero (XMR) from its September 5th low of $ 74.1012 was strong and the bulls pushed the price above the moving averages. This increases the likelihood that the correction will be completed.

Daily chart for the XMR / USD pair

Daily chart for the XMR / USD pair. Source: TradingView

However, The bears are unlikely to lower their arms at $ 97.4615 resistance. If the XMR / USD pair drops sharply from its current levels and breaks below $ 84, we may see a decline towards $ 74.1012.

Vice versa, If the bulls can stop the next drop in the 20-day exponential moving average ($ 89), it increases the likelihood of a breakout of $ 97.4615. Above this resistance, a move towards $ 105.9131 or $ 107.3742 is possible. A break above $ 107.3742 could cause a rally towards $ 120.

4-hour chart for the XMR / USD pair

4-hour chart for the XMR / USD pair. Source: TradingView

The 4-hour chart shows that the rebound from $ 74,1012 has been gradual. Although the bears broke the pair below the 30 EMA several times, they were unable to take advantage of this opportunity to bolster sales.

This shows that the bulls accumulate during the immersion. Currently the price has fallen back below the 30 EMA. If the pair bounces off its current level, the bulls will attempt to push the price above the overhead resistance at $ 97.4615.

The short-term momentum is likely to weaken if the bears sink and hold price por with immediate assistance at $ 87.5629.

ADA / USD

The recovery in Cardano (ADA) from the lows of $ 0.0855982 on September 6th met strong resistance at $ 0.0997444 on September 13th. The moving averages are falling and we could suggest that the bears are in command.

Daily chart for the ADA / USD pair

Daily chart for the ADA / USD pair. Source: TradingView

In a downtrend, the bears are short during the breakdown to resistance levels as it improves the risk / reward ratio of trading. If the bears can pull the ADA / USD pair below the $ 0.0855982 support, the downside could resume for now.

Traders may consider taking short-term positions with a reasonable stop loss in order to take advantage of the possible downward movement. The next downside support is at $ 0.074. However, if that support is not in place, the decline may extend to $ 0.05.

This bearish view will be invalidated if the pair bounces above $ 0.0855982 and the bulls push the price above $ 0.10. Such a move suggests that the downtrend may have ended.

However, you don’t have to start a new uptrend once a downtrend ends. because often the price stays in the range while trying to bottom out.

So, Traders can step aside and wait for a new bullish setup to form if the price can exceed USD 0.10.

4-hour chart for the ADA / USD pair

4-hour chart for the ADA / USD pair. Source: TradingView

The 4 hour chart shows that The pair has gradually moved back towards critical support at $ 0.0855982 and closing (UTC time) below this level can initiate the next level of downward movement.

However, If the pair bounces above $ 0.0855982, the bulls will try again to push the price above $ 0.10. When they have their way, a speedy recovery is possible.

Conversely, if the price falls again from $ 0.10, The pair could remain in a limited range for a few more days.

LINK / USD

Chainlink (LINK) is in a downtrend and has had a pattern of a lower high and a lower low over the past few days. suggesting the bears are taking advantage of the recovery moves to sell.

Daily chart for the LINK / USD pair

Daily chart for the LINK / USD pair. Source: TradingView

The downward sloping moving averages suggest that the trend is in favor of the bears. If they can get the LINK / USD pair below $ 9.65, it can drop to $ 9. This is an important support to look out for as any break below it will likely resume the downtrend.

The next support on the downside is $ 7. Hence Traders can consider taking advantage of the potential downside.

This bearish view will be zero if the pair is spinning around its current levels or bouncing sharply off the $ 9 levels. and breaks above the downtrend line.

4-hour chart for LINK / USD

4-hour chart for the LINK / USD. Source: TradingView

On September 5th and 6th The bears were unable to keep the price below $ 10.50. which shows that the cops tried to defend this level.

However, during the current slump, the price has stayed below $ 10.50 for the past two days. suggesting the purchase is sold out.

The moving averages are gradually falling and the price is below them. this means that the bears are in control.

A break above the 30 EMA is the first sign that the bears are losing their grip. Until then, the path of least resistance is down.

The views and opinions expressed here are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and business move is associated with risks. You must do your own research when making a decision.

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