commodity

Jun 14 2021

Bitcoin derivatives data shows pro traders ignored today’s $41K pump

Sometimes all Bitcoin (BTC) needs to pump 10% is a positive remark from someone like Elon Musk.

The Tesla CEO has been pointed to as the culprit for the recent downturn after the company’s May 12 announcement explaining that it would no longer accept Bitcoin payments due to environmental concerns. Musk followed up by saying that he was looking into other cryptocurrencies that required 99% less energy consumption.

However, on June 13, the situation reversed as Musk reassured the public that Tesla did not sell any additional Bitcoin. The post also said that the electric-car producer would resume taking BTC payments as soon as its Bitcoin mining relied on a minimum of 50% clean energy.

In bear markets, top traders act with caution

While retail investors and algorithmic trading bots jump into action as soon as bullish or bearish signals and news flash, top traders tend to act more with more caution. Those who have been around the crypto markets long enough know that positive news might end up being ignored or severely downplayed in bear markets.

On the other hand, even potentially negative news seems to have little to no impact during bull runs. For example, on Sept. 26, 2020, Kucoin was hacked for $150 million. The following week, on Oct. 1, the United States Commodity Futures Trading Commission charged BitMEX for operating an unregistered trading platform and violating Anti-Money Laundering regulations.

Two weeks later, police reportedly questioned the founder of OKEx, forcing the exchange to suspend crypto withdrawals. Had this series of negative news happened while Bitcoin was flat or in a bearish phase, the price would have undoubtedly have stalled during a bear market.

*Bitcoin price at Coinbase in USD, Sept. 2020. Source: TradingView*

As shown above, Bitcoin barely had any negative impact in late September and October 2020. In fact, by the end of November 2020, Bitcoin was up 74% in two months. This is the main reason why top traders tend to ignore positive news during bear markets and vice-versa.

The 3-month futures premium is neutral

A futures contract seller will usually demand a price premium to regular spot exchanges. This situation is not exclusive to crypto markets and happens in every derivatives market because in addition to the exchange liquidity risk, the seller is postponing settlement and this results in a higher price.

The 3-month futures premium (basis rate) usually trades at a 5% to 15% annualized premium in healthy markets. When futures are trading below the regular spot exchange price, it signals a short-term bearish sentiment.

*Huobi 3-month Bitcoin futures basis. Source: Skew*

As shown above, the future basis has been below 11% since May 20 and flirting with bearish territory on multiple occasions as it tested 5%. The current level indicates a neutral position from top traders.

The options skew is no longer signaling fear

The 25% delta skew compares similar call (buy) and put (sell) options side-by-side. It will turn positive when the protective put options premium is higher than similar risk call options.

The opposite holds when market makers are bullish and this causes the 25% delta skew indicator to enter the negative range.

*Deribit Bitcoin options 25% delta skew. Source: laevitas.ch*

The above chart confirms that top traders, including arbitrage desks and market markers, are currently uncomfortable with Bitcoin price as the neutral-to-bearish put options premium is higher. However, the current 7% positive skew is far from the 20% exaggerated fear seen in late May.

Derivatives markets show no evidence of top traders getting excited about the recent $40,000 hike. On the bright side, there is room for leverage buyers to mount positions. Stronger upswings usually occur when investors are least expecting, and the current scenario seems to be a perfect example.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Bitcoin derivatives data shows pro traders ignored today’s $41K pump

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Jun 13 2021

Top 5 cryptocurrencies to watch this week: BTC, AAVE, KSM, ALGO, TFUEL

Bitcoin’s (BTC) price continues to be range-bound between $30,000 and $40,000 level for the past few days, which is not necessarily a bearish sign.

Generally, after a sharp fall, the price tends to consolidate as the asset transfers from weaker hands to stronger hands. After the transition is complete, the asset breaks out and starts a new uptrend. Usually, the longer the price consolidates in a range, the stronger the next trending move will be.

Bloomberg Intelligence senior commodity strategist Mike McGlone said on Saturday that Bitcoin’s declining supply was a positive sign, which could act as a “bullish ace” for its move higher “if past patterns hold.”

*Crypto market data daily view. Source:* *Coin360*

Yoni Assia, CEO of eToro, also told Cointelegraph that Bitcoin could see a sharp rise “over the next three to five years, as there are still 5 billion people in the world that basically don’t have good local currency.”

Therefore, investors should not be discouraged by the muted price action in the short term. Bitcoin’s fundamentals remain strong and are likely to result in a new uptrend in the future.

As crypto markets consolidate, let’s analyze the charts of the top-5 cryptocurrencies that may outperform in the next few days.

BTC/USDT

Bitcoin turned down from the resistance line of the descending triangle on Jan. 12 and broke below the 20-day exponential moving average ($36,586). This suggests that the bears are aggressively defending the resistance line.

The longer the price stays below the 20-day EMA, the greater the chances of a drop to the lower levels. If bears sink the price below $34,600, the BTC/USDT pair could drop to $33,400 and then to $31,000.

A break and close below $31,000 will complete a descending triangle pattern, which has a target objective at $19,549. However, it is unlikely to be a straight drop to the lower levels because the bulls will attempt to stall the decline in the $31,000 to $28,000 support zone.

This negative view will invalidate if the price continues to move up and rises above the resistance line of the triangle. Such a move could open the gates for a rise to the 50-day simple moving average ($44,709), which is again likely to act as a stiff resistance.

A break above the 50-day SMA will suggest that the correction could be over and the bulls will gradually try to start a new up-move.

*BTC/USDT 4-hour chart. Source:* *TradingView*

The moving averages on the 4-hour chart have been crossi each other and the relative strength index (RSI) is just above the midpoint, indicating that bulls are trying to make a comeback.

A breakout and close above the resistance line of the triangle will signal that demand exceeds supply. If the bulls sustain the price above the triangle, a new up-move could begin.

Alternatively, if the price turns down from the resistance line and breaks below $34,000, it could signal a minor advantage to the bears. That could pull the price down to the critical support at $31,000. A bounce off this support will suggest accumulation at lower levels and that could keep the pair inside the triangle for some more time.

AAVE/USDT

Aave is trading inside a large range between $280 and $581.67 for the past few months. The bulls have successfully defended the support of the range on five previous occasions, hence the buyers are likely to buy the dip once again.

If the price rebounds off the current level with strength, it will suggest that the bulls continue to accumulate on dips. The buyers will then try to push the price above the 20-day EMA ($344). If they succeed, the AAVE/USDT pair could rise to the 50-day SMA ($414), which may act as a stiff hurdle.

If the price turns down from the 50-day SMA, the pair could consolidate between $280 and $414 for a few days. On the contrary, a break above the 50-day SMA will clear the path for a northward march toward $581.67.

This positive view will invalidate if the price turns down from the 20-day EMA and breaks below the $280 support. That will embolden the bears who will then try to pull the price down to $208.09 and then to $160.

*AAVE/USDT 4-hour chart. Source:* *TradingView*

The 4-hour chart shows the bears had pulled the price below $280 but they are struggling to sustain the lower levels. However, the moving averages are sloping down and the RSI is in the negative zone, indicating advantage to the bears.

If the price turns down from the current level and breaks below $266.68, the pair could start its downward journey. This negative view will invalidate if the bulls push the price above the downtrend line. Such a move will suggest the correction is over and the pair could then rise to $500.

KSM/USDT

Kusama (KSM) has been witnessing volatile moves in the past few days. Although the bulls pushed the price above the $480 overhead resistance on June 9, they could not sustain the higher levels and the price dipped back below the level on June 10. This shows that bears are selling on rallies.

However, the buyers have not allowed the price to break below the 20-day EMA ($388). This suggests that the sentiment is turning positive as the bulls are buying the dips to the 20-day EMA.

The rising 20-day EMA and the RSI near the midpoint indicate a minor advantage to the bulls. The buyers will now make one more attempt to push the price above $480. If they succeed, the KSM/USD pair could rally to $537 and then retest the all-time high at 625.

This positive view will invalidate if the price turns down from the current level or the overhead resistance and breaks below $360. That could pull the price down to $280.

*KSM/USDT 4-hour chart. Source:* *TradingView*

The 4-hour chart shows the bulls are trying to defend the trendline support. However, the 20-EMA has turned down and the RSI is in the negative zone, indicating the bears have the upper hand.

If the sellers sink the price below $380, the pair could drop to $342. A break below this support could result in a decline to $280.

This negative view will invalidate if the bulls can push the price above $429. That could attract buying, pushing the pair to $480.

ALGO/USDT

Algorand (ALGO) bounced off the trendline on June 12 and rose above the 20-day EMA ($0.97), which suggests the bulls are buying on dips. The flattish 20-day EMA and the RSI near the midpoint suggest the selling pressure has reduced.

The price action of the past few days has formed an ascending triangle pattern, which will complete on a breakout and close above $1.15. If the bulls manage to sustain the price above $1.15, the ALGO/USDT pair could rally to the target objective at $1.63.

Contrary to this assumption, if the price turns down from $1.15, the pair may extend its stay inside the triangle for a few more days. A breakdown and close below the trendline will nullify the bullish view and open the gates for a drop to $0.80 and then $0.67.

*ALGO/USDT 4-hour chart. Source:* *TradingView*

The 4-hour chart shows the bulls are attempting to push the price above the downtrend line. If they can sustain the breakout, the pair could rise to $1.15. A breakout and close above this resistance could start a new uptrend.

Conversely, if the price turns down from the current level and breaks below the moving averages, the bears will make one more attempt to sink the price below the trendline. If they succeed, it will signal the start of a deeper correction.

TFUEL/USDT

Theta Fuel (TFUEL) soared to a new all-time high at $0.679 on June 9 but the bulls could not sustain the higher levels as seen from the long wick on the day’s candlestick. That was followed by a sharp pullback to the 20-day EMA ($0.41) on June 12.

The strong rebound off the 20-day EMA shows the sentiment is positive and traders are aggressively buying on dips. The bulls will now try to push the price to the all-time high where they are likely to encounter stiff resistance from the bears.

If the price turns down from the all-time high, the bears will make one more attempt to pull the price below the 20-day EMA. If they succeed, it will suggest the start of a deeper correction.

Alternatively, if buyers propel the price above the all-time high, the TFUEL/USDT pair could resume the uptrend, with the next target objective at $0.85 and then $1.

*TFUEL/USDT 4-hour chart. Source:* *TradingView*

The 4-hour chart shows the pair rebounded strongly off the $0.40 support, which suggests accumulation at lower levels. However, the relief rally is facing resistance just below the 61.8% Fibonacci retracement level at $0.57.

This suggests that the bears have not given up yet and are selling on rallies. If the price dips below the 20-EMA, the bears will try to pull the price down to $0.40. If that happens, the pair may consolidate between these two levels for a few days.

Alternatively, if the price rebounds off the 20-EMA, it will indicate the sentiment is positive and the bulls are not waiting for a deeper fall to buy. That will increase the possibility of a break above $0.57. The pair could then rise to retest the all-time high.

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.

Top 5 cryptocurrencies to watch this week: BTC, AAVE, KSM, ALGO, TFUEL

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Jun 09 2021

Bullish reversal? Traders debate whether $37K BTC price is a trend reversal

The cryptocurrency market flashed bullish on June 9 as Bitcoin (BTC) price reversed course and rallied 20% to $37,500.

For the past few weeks, analysts had been debating whether or not BTC was entering a long-term bear trend and the argument has been further complicated by a mixture of positive and negative headlines including the adoption of Bitcoin (BTC) as legal tender in El Salvador and authorities in China ordering Chinese search engines to block results for searches related to the top crypto exchanges in the country.

Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin has surged 20% from a low at $31,000 late on June 8 to an intraday high at $37,450 as bulls look to take control of the trend.

The move higher is seen as a bullish development for many including Mike McGlone, senior commodity strategist at Bloomberg Intelligence, who now feels that BTC is more likely to reach $40,000 than collapse down to $20,000. On the other hand, traders like Rekt Capital believe that BTC needs to have a weekly close above $32,000 to avoid further downside.

#BTC is now at Weekly support (black; ~$32000)

Wicking into the orange area (~$29000) is fine as long as $BTC can Weekly Close above the black level later this week#Bitcoin pic.twitter.com/iDtjHdphKj

— Rekt Capital (@rektcapital) June 8, 2021

The coming days will determine the fate of the bull run

The steady flow of positive announcements combined with the renewed regulatory crackdown in China has led some traders to ponder whether a bullish reversal is at hand or if the current price action is nothing more than a bull trap.

According to Delphi Digital, the clear head and shoulders pattern seen on the BTC chart is a potential bearish indicator.

*Bitcoin head and shoulders pattern. Source:* *Delphi Digital*

Despite this bearish pattern, the analysts also noted that a bullish RSI divergence has also formed, indicating the possibility of a trend reversal in the near future.

*Bitcoin price and a bullish divergence on the RSI. Source:* *Delphi Digital*

According to Élie Le Rest, partner at digital asset management firm ExoAlpha, “the thesis for Bitcoin as a store of value is stronger than ever” but he feels that the top cryptocurrency “needs to increase its dominance” in order for the current bull run to continue.

Le Rest pointed to the news that El Salvador would recognize BTC as legal tender as “a huge step forward toward Bitcoin adoption” and he expects other countries to follow suit in the coming months and years.

Regarding Bitcoin’s future prospects, Le Rest mentioned that following the lower level retest of the $30,000 to $40,000 range over the past few days, a break above $40,000 “could resume the bull run that took place a month ago.”

Le Rest said:

“Traders still have some doubts on where the market is heading, so leverage has remained relatively low as forced liquidations have been painful since May. Breaking $40,000 could give the boost in traders confidence to leverage again their book to power new highs of the crypto market.”

Traders have also been keeping a close eye on Ether (ETH) and Le Rest pointed to the “massive ETH outflow” seen on June 8 as “a positive sign that the ETH bull run is not over yet,” but he cautioned that alternative chains like the Binance Smart Chain, Solana, and Avalanche “are putting a lot of efforts to take their DeFi market share.”

Altcoins rally alongside Bitcoin

*Daily cryptocurrency market performance. Source:* *Coin360*

Bitcoin’s rally to $37,500 also provided a boost to many altcoins.

Ether saw its price rally 14% from a low at $2,300 on June 8 to an intraday high near $2,630, and Delphi Digital pointed out that the price of Ether is being supported by a decline in the circulating supply of Ether as 23% of its supply is now locked up smart contracts.

*Ether supply locked in smart contracts vs. price. Source:* *Delphi Digital*

Other notable performances include a 23% gain in the price of Kusama (KSM) to an intraday high at $486 following the launch of the Kusama parachain auctions and an 18% gain in the price of the Curve DAO Token (CRV) to $2.50.

The overall cryptocurrency market cap now stands at $1.63 trillion and Bitcoin’s dominance rate is 43%.

Bullish reversal? Traders debate whether $37K BTC price is a trend reversal

Source

May 03 2021

Ethereum Cryptocurrency Breaks Past $3,000 in Record High

On Monday, May 3, 2021, the cryptocurrency ether surpassed $3,000 for the first time, setting a fresh record high in a spectacular surge that has outperformed the larger bitcoin, as investors bet that ether would be increasingly useful in a decentralized future financial framework.

By lunchtime in Asia, Ether, the ethereum blockchain’s token, had risen 3% to $3,051.99 on the Bitstamp market. It has risen more than 300 percent this year, comfortably outpacing the more successful bitcoin, which has risen 95 percent.

Ether is the second-largest cryptocurrency by market value after Bitcoin, and it is a digital currency or token that allows transactions on the Ethereum blockchain.

According to the reports published by Reuters, James Quinn, managing director at Q9 Capital said, “Half of the big rebound is a catch-up to bitcoin’s late-2020 gains.”

It also represents advancements in the ethereum blockchain, as well as an increasing trend toward “DeFi,” or decentralized finance, which applies to transactions not involving conventional banking and for which the ethereum blockchain is a critical forum, conforming to him.

Bitcoin, according to Quinn, was initially leading the rally because it was their normal first port of call when a large number of retail investors entered the market.

The expiration of $4.2 billion in options contracts may be one of the main reasons behind Bitcoin’s rally. After contract expiration, the crypto asset has historically rebounded.

However, Quinn also said that as the rally matured over the last six months, the market saw DeFi, and a lot of DeFi is based on ethereum.

The introduction of ether exchange-traded funds in Canada, as well as increased demand for ether wallets to transact non-fungible tokens like digital art, also moved the price up.

The ether/bitcoin cross rate has increased by more than 100% this year and reached a 2.5-year peak on Sunday, indicating a rotation into the second-largest cryptocurrency as investors diversify their holdings.

“DeFi volumes continue to push ethereum prices higher as investors grow confidence in crypto and see ethereum as a stable second-place commodity,” said Jehan Chu, managing partner at Hong Kong blockchain venture capital firm Kenetic Capital.

Bloomberg reported last week that the European Investment Bank wants to issue a crypto bond based on the Ethereum blockchain, while JP Morgan is considering launching a controlled bitcoin fund.

Bitcoin, the world’s most valuable crypto commodity with a market capitalization of more than $1 trillion, reclaimed $50,000 last week and hovered about $58,000 on Monday, up around 3% but still well below its all-time peak of $64,895.22.

The US dollar’s value remained largely stable.

Ethereum Cryptocurrency Breaks Past $3,000 in Record High

Source

Apr 12 2021

Price analysis 4/12: BTC, ETH, BNB, XRP, ADA, DOT, UNI, LTC, LINK, XLM

Bloomberg Intelligence senior commodity strategist Mike McGlone equated the current consolidation in Bitcoin (BTC) price to that of a “caged bull, well-rested to escape.” When compared with the rallies a year after the previous two Bitcoin halvings in 2012 and 2016, the strategist called the current price action “tame.’

According to McGlone, Bitcoin is “still in price-discovery mode” and its plateau is still far away.

While Bitcoin remains in focus, altcoins have continued to steal the show. Bitcoin’s market dominance, which stood closer to 70% on Jan. 4 has continued to slide even though its price has risen more than 104% year-to-date. The current market dominance at 54.3% is the lowest since April 2019 according to data from CoinMarketCap. This suggests that several altcoins are outperforming Bitcoin by a large margin.

However, approval of a Bitcoin exchange-traded fund could tilt the advantage back in favor of Bitcoin. Mike Novogratz’s Galaxy Digital became the latest to file an application with the United States Securities and Exchange Commission for a Bitcoin ETF on Monday. The growing list of candidates applying to launch a Bitcoin ETF shows that there is still huge demand for the digital asset

Will Bitcoin continue to trade sideways while altcoins rally or will it resume its uptrend and lead from the front. Let’s analyze the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin formed an inside day candlestick pattern on April 11, indicating indecision among the bulls and the bears. The bulls tried to resolve this uncertainty to the upside today by piercing the all-time high at $61,825.84, but the bears had other plans. They again successfully defended the overhead resistance.

Although the bears are defending the overhead resistance, they have not been able to sink the price further away from $60,000. This suggests the bulls are not closing their long positions in a hurry as they anticipate the uptrend to continue.

If the bulls can drive and sustain the price above $61,825.84, the BTC/USDT pair will complete a bullish inverse head and shoulders pattern. That could result in a rally to the pattern target at $69,540. If the momentum sustains, the next target to watch out for is $79,566.

This bullish view will invalidate if the pair turns down and breaks below the 50-day simple moving average ($54,7823). Such a move could signal the start of a deeper correction.

ETH/USDT

Ether (ETH) has been trading above the breakout level at $2,040.77 for the past three days, but the up-move lacks momentum. The long wick on the April 10 candlestick and the inside day candlestick pattern on April 11 suggests hesitation by the bulls to push the price higher.

If the price does not pick up momentum within the next few days, the bears will try to pull the price back below $2,040.77. If the ETH/USDT pair breaks below the 20-day exponential moving average ($1,985), the next stop could be the trendline. A break below this support could signal the start of a deeper correction.

However, the upsloping 20-day EMA and the relative strength index (RSI) above 61 indicate advantage to the bulls. If the bulls punch the price above $2,200 with force, the pair may start the next leg of the uptrend that could reach $2,618.14.

BNB/USDT

Binance Coin (BNB) is in a strong uptrend, but the up-move of the past two days is showing signs of a melt-up. The long wick on today’s candlestick suggests some traders are booking profits at higher levels.

Although the 20-day EMA ($385) is sloping up, the RSI above 84 indicates the rally is overheated in the short term. This could result in a minor correction or consolidation for the next few days. In strong uptrends, the corrections generally do not last for more than three days.

The first support on the downside is the 38.2% Fibonacci retracement level at $483.95. If the price rebounds off this support, it will suggest the sentiment remains positive and bulls are buying on dips. They will then try to resume the uptrend by pushing the price above the all-time high at $638.56.

If they succeed, the next leg of the uptrend could begin, which may propel the BNB/USDT pair to $888.70. On the contrary, if bears sink the price below $483.95, the pair could drop to the 20-day EMA.

XRP/USDT

The volatility contraction on April 9 was resolved to the upside on April 10 and XRP rallied above $1.11. The bulls continued their purchase on April 11 and pushed the price to $1.50. However, the long wick on the day’s candlestick suggests traders booked profits at higher levels.

The bears could not build up on the advantage today and start a correction. The bulls tried to resume the uptrend but failed, resulting in the formation of a Doji candlestick pattern. This suggests indecision among the bulls and the bears about the next directional move.

If the buyers can propel the price above $1.50, the XRP/USDT pair could rally to $2. Contrary to this assumption, if the price turns down and dips below $1.30, the pair could start a correction.

The major support on the downside is $1.11. If the buyers can flip this level into support, the pair will make one more attempt to rise above $1.50. On the other hand, a break below $1.11 may result in a drop to the 20-day EMA ($0.89).

ADA/USDT

The bulls successfully held Cardano (ADA) above the 50-day SMA ($1.17) in the past few days and are currently attempting to start an up-move. However, the long wick on today’s candlestick suggests that buying dries up above $1.33.

If the bulls fail to sustain the price above $1.33, the aggressive bears may again try to sink the price below the 50-day SMA. If they manage to do that, the ADA/USDT pair could drop to the $1.03 to $0.98 support zone.

A rebound off this zone could keep the pair range-bound for a few more days. Alternatively, if the bears sink the price below the zone, the pair could decline to $0.80.

This negative view will invalidate if the pair sustains the price above $1.33. That could push the price to $1.48. A break above this resistance could start the next leg of the uptrend that may reach $2.

DOT/USDT

Polkadot (DOT) has been sandwiched between the 20-day EMA ($39.30) and the overhead resistance at $42.28 for the past few days. However, this tight range trading is unlikely to continue for long.

If the bulls can propel the price above $42.28, the DOT/USDT pair could rally to $46.80. The bears may again offer resistance at this level but if the bulls can overcome the barrier the pair could climb up to $53.50 and then $57.

The marginally upsloping 20-day EMA and the RSI above 54 suggest only a minor advantage to the bulls. If the bears can sink the price below the moving averages, it will open the gates for a decline to $32.50 and then $26.50.

UNI/USDT

Uniswap (UNI) has soared above the all-time high at $36.80 today. Although the moving averages are yet to turn up, the RSI has risen close to the overbought territory, indicating a pick-up in momentum.

If the bulls can sustain the price above $35.20, it will suggest strong demand at higher levels. The UNI/USDT pair could then march up to $43.43 and if this level also gets taken out, the up-move may hit $50.

Contrary to this assumption, if the bulls fail to sustain the price above $35.20, it will suggest that traders are booking profits at higher levels. If the price dips and sustains below $35.20, the range-bound action in the pair could continue.

LTC/USDT

Litecoin’s (LTC) volatility contraction on April 8 and 9 was followed by an expansion in favor of the bulls. The buyers pushed the price above $246.96 on April 10 and have successfully managed to sustain the price above it since then.

The upsloping 20-day EMA ($218) and the RSI above 63 suggest the path of least resistance is to the upside. If the buyers can drive the price above $262.93, the LTC/USDT pair could rally to its next target objective at $307.42.

This bullish view will invalidate if the price breaks and sustains below $246.96. Such a move will suggest that traders booked profits at higher levels. The critical support to watch on the downside is the 20-day EMA.

A strong bounce off it will suggest the sentiment remains positive and the bulls will once again try to resume the uptrend. Conversely, a break below the 20-day EMA could pull the price down to $170.

LINK/USDT

Chainlink (LINK) is stuck between $24 and $36.93. The marginally rising 20-day EMA ($30.92) and the RSI above 55 suggest the bulls have a slight edge. However, the failure of the bulls to challenge the $36.93 overhead resistance indicates that demand dries up at higher levels.

The bears are currently trying to sink the price below the $32 support. If they can accomplish that, the possibility of a break below the moving averages increases. Such a move could pull the price down to $24.

Contrary to this assumption, if the price bounces off the 20-day EMA, the bulls will make one more attempt to drive the price above $36.93. If they succeed, the LINK/USDT pair could resume its uptrend and rally toward $40 and then $50.

XLM/USDT

The bulls are attempting to resume the uptrend in Stellar Lumens (XLM) but they are facing stiff resistance at the $0.60 level. The bulls pushed the price above the overhead resistance on April 11 and today but they could not sustain the breakout.

If the bulls do not allow the price to slip below $0.55, it will suggest accumulation on dips. The upsloping 20-day EMA ($0.47) and the RSI near the overbought territory suggest the bulls are in control.

A breakout and close above $0.60 will be the first sign that bulls have overpowered the bears. If that happens, the XLM/USDT pair could resume the uptrend and rally to $0.72 and then $0.85.

On the other hand, if the bears sink the price below $0.55, the pair could drop to the 20-day EMA.

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.

Market data is provided by HitBTC exchange.

Price analysis 4/12: BTC, ETH, BNB, XRP, ADA, DOT, UNI, LTC, LINK, XLM

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