Bitcoin and Ripple’s XRP – Weekly Technical Analysis – October 19th, 2020

Bitcoin

Bitcoin rose by 1.18% in the week ending 18th October. Following a 6.53% gain from the week prior, Bitcoin ended the week at $11,518.0.

It was a choppy start to the week. Bitcoin fell to a Monday intraweek low $11,111.0 before finding support.

Steering clear of the first major support level at $10,782, Bitcoin bounced back to a Monday intraweek high $11,740.0.

Coming up against the first major resistance level at $11,746, Bitcoin fell back to $11,210 levels and into the red on Friday.

A relatively bullish end to the week, coming off the back of 2 consecutive days in the green delivered the upside for the week.

4 days in the green that included a 1.54% gain on Monday delivered the upside for the week. A 1.60% slide on Friday, limited the upside for the week, however.

For the week ahead

Bitcoin would need to avoid a fall through $11,456 pivot to support a run the first major resistance level at $11,802.

Support from the broader market would be needed for Bitcoin to break out from last week’s high $11.740.0.

Barring an extended crypto rally, the first major resistance level and last week’s high $11,740.0 would likely cap any upside.

In the event of a breakout, Bitcoin could test resistance at $12,000 before any pullback. The second major resistance level sits at $12,085.

Failure to avoid a fall through the $11,456 pivot would bring the first major support level at $11,173 into play.

Barring an extended sell-off, Bitcoin should steer clear of sub-$11,000 support levels. The second major support level sits at $10,827

At the time of writing, Bitcoin was down by 0.31% to $11,482.0. A mixed start to the week saw Bitcoin hit an early Monday morning high $11,550.0 before falling to a low $11,459.1.

Bitcoin left the major support and resistance levels untested at the start of the week.

BTC/USD 19/10/20 Daily Chart

Ripple’s XRP

Ripple’s XRP slid by 5.21% in the week ending 18th October. Reversing a 3.07% gain from the previous week, Ripple’s XRP ended the week at $0.24216.

It was a mixed start to the week. Ripple’s XRP rose to a Tuesday intraweek high $0.25998 before hitting reverse.

Falling short of the first major resistance level at $0.2638, Ripple’s XRP slid to a Friday intraweek low $0.23783 and into the deep red.

Ripple’s XRP fell through the first major support level at $0.2438 before finding support through the weekend.

In spite of 2 consecutive days in the green, however, Ripple’s XRP failed to break back through the first major support level.

3-days in the red that included a 2.89% slide on Tuesday and a 2.36% fall on Friday delivered the downside for the week.

For the week ahead

Ripple’s XRP would need to move through the $0.2467 pivot level to support a run at the first major resistance level at $0.2555.

Support from the broader market would be needed, however, for Ripple’s XRP to break back through to $0.2550 levels.

Barring an extended crypto rally, the first major resistance level and last week’s high $0.25998 would likely cap any upside.

In the event of a breakout, Ripple’s XRP could test resistance at $0.26 before any pullback. The second major resistance level sits at $0.2688.

Failure to move through the $0.2467 would bring the first major support level at $0.2333 into play.

Barring an extended crypto market sell-off, however, Ripple’s XRP should steer clear well clear of sub-$0.23 levels. The second major support level sits at $0.2245.

At the time of writing, Ripple’s XRP was down by 0.01% to $0.24214. A mixed start to the week saw Ripple’s XRP rise to an early Monday morning high $0.24281 before falling to a low $0.24203.

Ripple’s XRP left the major support and resistance levels untested at the start of the week.

XRP/USD 19/10/20 Daily Chart

The Crypto Daily – Movers and Shakers – October 19th, 2020

Bitcoin, BTC to USD, rose by 1.25% on Sunday. Following on from a 0.44% gain on Saturday, Bitcoin ended the week up by 1.18% to $11,518.0.

It was a mixed start to the day. Bitcoin fell to an early morning intraday low $11,364.9 before making a move.

Steering clear of the first major support level at $11,294, Bitcoin rallied to a final hour intraday high $11,520.0.

Bitcoin broke through the first major resistance level at $11,437 and the second major resistance at $11,499.

The near-term bullish trend remained intact, supported by the latest move back through to $11,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $6,400 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Sunday.

Crypto.com Coin slid by 9.12% to buck the trend on the day.

It was a bullish day for the rest of the majors, however.

Chainlink (+2.88%), Ethereum (+2.74%), and Polkadot (+2.00%) led the way.

Binance Coin (+1.52%), Cardano’s ADA (+1.49%), and Litecoin (+1.39%) also found strong support.

Bitcoin Cash ABC (+0.57%), Bitcoin Cash SV (+0.80%), and Ripple’s XRP (+0.63%) trailed the front runners on the day.

It was also a mixed week for the crypto majors in the week ending 18th October.

Crypto.com Coin slumped by 21.56% to lead the way down.

Bitcoin Cash SV (-6.73%), Litecoin (-5.73%), Polkadot (-4.29%), and Ripple’s XRP (-5.21%) also saw red.

Binance Coin (+7.57%), Bitcoin Cash ABC (+3.71%), Cardano’s ADA (+0.87%), Chainlink (+0.75%), and Ethereum (+1.12%) joined Bitcoin in the green, however.

For the week, the crypto total market rose to a Monday high $365.23bn before falling to a Friday low $343.10. At the time of writing, the total market cap stood at $353.28bn.

Bitcoin’s dominance fell to a Monday low 59.47% before rising to a Friday high 60.45%. At the time of writing, Bitcoin’s dominance stood at 60.18%.

This Morning

At the time of writing, Bitcoin was down by 0.31% to $11,482.0. A mixed start to the day saw Bitcoin rise to an early morning high $11,550.0 before falling to a low $11,479.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day for the crypto majors.

Bitcoin Cash SV and Ripple’s XRP were up by 0.01% and by 0.06% respectively to buck the trend early on.

It was a bearish start for the rest of the majors, however.

At the time of writing, Crypto.com Coin was down by 1.23% to lead the way down.

BTC/USD 19/10/20 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid a fall through the pivot level at $11,468 to bring the first major resistance level at $11,570 back into play.

Support from the broader market would be needed, however, for Bitcoin to break out from the morning high $11,550.0.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of another crypto breakout, Bitcoin could test the second major resistance level sits at $11,623.

Failure to avoid a fall through the $11,468 pivot would bring the first major support level at $11,415 into play.

Barring an extended crypto sell-off, Bitcoin should steer clear of sub-$11,400 support levels. The second major support level sits at $11,313.

The Crypto Daily – Movers and Shakers – October 18th, 2020

Bitcoin, BTC to USD, rose by 0.44% on Saturday. Partially reversing a 1.62% fall from Friday, Bitcoin ended the day at $11,375.0.

It was a mixed start to the day. Bitcoin fell to an early morning low $11,290.0 before striking a mid-morning high $11,388.0.

Leaving the major support and resistance levels untested, Bitcoin slid to an early afternoon intraday low $11,275.0.

Steering clear of the first major support level at $11,176, Bitcoin hit a mid-afternoon intraday high $11,418.0 before easing back.

Falling short of the first major resistance level at $11,511, Bitcoin fell back to end the day at sub-$11,400 levels.

The near-term bullish trend remained intact, supported by the latest move back through to $11,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $6,400 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Saturday.

Bitcoin Cash ABC (-1.52%), Bitcoin Cash SV (-0.19%), Crypto.com Coin (-1.91%), and Litcoin (-1.49%) saw red on the day..

Binance Coin (+0.53%), Cardano’s ADA (+1.61%), Chainlink (+0.31%), Ethereum (+0.80%), Polkadot (+1.16%), and Ripple’s XRP (+0.17%) joined Bitcoin in the green.

In the current week, the crypto total market rose to a Monday high $365.23bn before falling to a Friday low $343.10. At the time of writing, the total market cap stood at $350.42bn.

Bitcoin’s dominance fell to a Monday low 59.47% before rising to a Friday high 60.45%. At the time of writing, Bitcoin’s dominance stood at 60.19%.

This Morning

At the time of writing, Bitcoin was up by 0.14% to $11,391.0. A mixed start to the day saw Bitcoin fall to an early morning high $11,364.9 before rising to a high $11,410.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day for the crypto majors.

Bitcoin Cash SV was down by 0.35% to buck the trend early on.

It was a bullish start for the rest of the majors, however.

At the time of writing, Binance Coin was up by 1.40% to lead the way.

BTC/USD 18/10/20 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid a fall through the pivot level at $11,356 to bring the first major resistance level at $11,437 back into play.

Support from the broader market would be needed, however, for Bitcoin to break out from Saturday’s high $11,418.0.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of another crypto breakout, Bitcoin could test the second major resistance level at $11,499.

Failure to avoid a fall through the $11,356 pivot would bring the first major support level at $11,294 into play.

Barring an extended crypto sell-off, Bitcoin should steer clear of sub-$11,200 levels. The second major support level at $11,213 should limit any downside.

The Crypto Daily – Movers and Shakers – October 17th, 2020

Bitcoin, BTC to USD, fell by 1.62% on Friday. Reversing a 0.60% gain from Thursday, Bitcoin ended the day at $11,325.0.

It was a mixed start to the day. Bitcoin rose to an early morning intraday high $11,547.0 before hitting reverse.

Falling short of the first major resistance level at $11,668, Bitcoin fell to an early morning intraday low $11,212.0.

The morning pullback saw Bitcoin fall through the first major support level at $11,313.

Finding support in the late morning, Bitcoin briefly revisited $11,400 levels before falling back through the first major support level.

A late move back through to $11,320 levels reduced the deficit on the day. The late move also saw Bitcoin break back through the first major support level at $11,313.

The near-term bullish trend remained intact, supported by the latest move back through to $11,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $6,400 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a bearish day on Friday.

Binance Coin (-4.18%), Bitcoin Cash ABC (-5.22%), and Bitcoin Cash SV (-5.16%) led the way down.

Cardano’s ADA (-2.25%), Ethereum (-3.26%), Litecoin (-3.87%), Polkadot (-2.81%), and Ripple’s XRP (-2.31%) also struggled.

Chainlink (-1.57%) and Crypto.com Coin (-1.94%) saw relatively modest losses on the day.

In the current week, the crypto total market rose to a Monday high $365.23bn before falling to a Friday low $343.10. At the time of writing, the total market cap stood at $347.00bn.

Bitcoin’s dominance fell to a Monday low 59.47% before rising to a Friday high 60.45%. At the time of writing, Bitcoin’s dominance stood at 60.28%.

This Morning

At the time of writing, Bitcoin was down by 0.25% to $11,297.0. A mixed start to the day saw Bitcoin rise to an early morning high $11,334.0 before falling to a low $11,290.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a bearish start to the day for the crypto majors.

At the time of writing, Bitcoin Cash SV was down by 1.68% to lead the way down.

BTC/USD 17/10/20 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to move through the pivot level at $11,361 to bring the first major resistance level at $11,511 into play.

Support from the broader market would be needed, however, for Bitcoin to break back through to $11,500 levels.

Barring an extended crypto rally, the first major resistance level and Friday’s high $11,547.0 would likely cap any upside.

In the event of another crypto breakout, Bitcoin could test resistance at $11,600 before any pullback. The second major resistance level sits at $11,696.

Failure to move through the $11,361 pivot would bring the first major support level at $11,176 into play.

Barring an extended crypto sell-off, Bitcoin should steer clear of the second major support level at $11,026.

The Crypto Daily – Movers and Shakers – October 16th, 2020

Bitcoin, BTC to USD, rose by 0.60% on Thursday. Following a 0.02% decline on Wednesday, Bitcoin ended the day at $11,509.0.

It was a bearish start to the day. Bitcoin fell to a late morning intraday low $11,277 before making a move.

The morning pullback saw Bitcoin fall through the first major support level at $11,311.

Finding support going into the afternoon, however, Bitcoin struck a late intraday high $11,632.

Bitcoin broke through the first major resistance level at $11,566 before falling back to sub-$11,500 levels.

Finding late support, however, Bitcoin broke back through to $11,500 levels to end the day in the green. Resistance at $11,500 continued to peg Bitcoin back, however.

The near-term bullish trend remained intact, supported by the latest move back through to $11,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $6,400 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Thursday.

Binance Coin (+1.69%), Bitcoin Cash ABC (+1.04%), and Bitcoin Cash SV (-0.14%) joined Bitcoin in the green.

It was a bearish day for the rest of the majors.

Polkadot led the way down, falling by 3.00%.

Chainlink (-1.20%), and Ripple’s XRP (-1.23%) also struggled.

Cardano’s ADA (-0.36%), Crypto.com Coin (-0.29%), Ethereum (-0.28%), and Litecoin (-0.46%) saw relatively modest losses on the day.

In the current week, the crypto total market slid to a Monday low $344.29bn before rising to a Monday high $365.23bn. At the time of writing, the total market cap stood at $353.67bn.

Bitcoin’s dominance fell to a Monday low 59.47% before rising to a Thursday high 60.21%. At the time of writing, Bitcoin’s dominance stood at 60.19%.

This Morning

At the time of writing, Bitcoin was down by 0.06% to $11,502.0. A mixed start to the day saw Bitcoin fall to an early morning low $11,489.0 before rising to a high $11,512.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day for the crypto majors.

Cardano’s ADA (-0.64%), Chainlink (-0.61%), Ethereum (-0.10%), Litecoin (-0.26%), Polkadot (-0.15%), and Ripple’s XRP (-0.09%) joined Bitcoin in the red.

At the time of writing, Binance Coin was up by 0.56% to lead the way. Bitcoin Cash SV (+0.19%) and Crypto.com Coin (+0.14%) also found early support.

BTC/USD 16/10/20 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid a fall through the pivot level at $11,473 to bring the first major resistance level at $11,668 into play.

Support from the broader market would be needed, however, for Bitcoin to break back through to $11,600 levels.

Barring an extended crypto rally, the first major resistance level and Thursday’s high $11,632.0 would likely cap any upside.

In the event of another crypto breakout, Bitcoin could test resistance at $11,900 before any pullback. The second major resistance level sits at $11,828.

Failure to avoid a fall through the $11,473 pivot would bring the first major support level at $11,313 into play.

Barring an extended crypto sell-off, Bitcoin should to steer clear of the second major support level at $11,118.

The Crypto Daily – Movers and Shakers – October 14th, 2020

Bitcoin, BTC to USD, fell by 1.02% on Tuesday. Partially reversing a 1.55% gain from Monday, Bitcoin ended the day at $11,442.0.

It was a mixed start to the day. Bitcoin rose to a late morning intraday high $11,574.9 before hitting reverse.

Falling well short of the first major resistance level at $11,830, Bitcoin fell to an early afternoon intraday low $11,333.0.

Steering clear of the first major support level at $11,201 Bitcoin briefly revisited $11,470 levels before easing back.

The near-term bullish trend remained intact, supported by the latest move back through to $11,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $6,400 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Tuesday.

Binance Coin (+0.26%), Bitcoin Cash ABC (+5.77%), Bitcoin Cash SV (+0.71%), and Ripple’s XRP (+0.25%) found support.

It was a bearish day for the rest of the majors. Chainlink and Crypto.com Coin slid by 3.84% and by 4.77% respectively to lead the way down.

Cardano’s ADA (-0.24%), Ethereum (-1.40%), Litecoin (-1.30%), and Polkadot (-0.35%) saw relatively modest losses on the day.

At the start of the week, the crypto total market slid to a Monday low $344.29bn before rising to a Monday high $365.23bn. At the time of writing, the total market cap stood at $355.63bn.

Bitcoin’s dominance rose to a Monday high 60.10% before falling to a Monday low 59.47%. At the time of writing, Bitcoin’s dominance stood at 59.66%.

This Morning

At the time of writing, Bitcoin was up by 0.22% to $11,467.0. A mixed start to the day saw Bitcoin fall to an early morning low $11,427.0 before rising to a high $11,467.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a bullish start to the day.

At the time of writing, Chainlink was up by 1.72% to lead the way.

BTC/USD 14/10/20 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid a fall back through the pivot level at $11,450 to bring the first major resistance level at $11,567 into play.

Support from the broader market would be needed, however, for Bitcoin to break back through to $11,500 levels.

Barring an extended crypto rally, the first major resistance level and Tuesday’s high $11,574.9 would likely cap any upside.

In the event of another crypto breakout, Bitcoin could test resistance at $11,700 before any pullback. The second major resistance level sits at $11,692.

Failure to avoid a fall back through the $11,450 pivot would bring the first major support level at $11,325 into play.

Barring an extended crypto sell-off, however, Bitcoin should steer clear of sub-$11,200 levels. The second major support level at $11,208 should limit any downside.

Bitcoin and Chainlink – Weekly Technical Analysis – October 12th, 2020

Bitcoin

Bitcoin rose by 6.53% in the week ending 11th October. Reversing a 1.08% decline from the week prior, Bitcoin ended the week at $11,385.0.

It was another mixed but bearish start to the week. Bitcoin fell to a Thursday intraweek low $10,541 before making a move.

Steering clear of the first major support level at $10,390, Bitcoin rallied to a Saturday intraweek high $11,505.0.

Bitcoin broke through the first major resistance level at $10,985 and the second major resistance level at $11,283.

A brief fall back to sub-$11,300 levels on Saturday saw Bitcoin find support at the second major resistance level to wrap up the week at $11,300 levels.

6 days in the green that included a 2.40% rally on Thursday delivered the upside for the week.

For the week ahead

Bitcoin would need to avoid a fall through $11,144 pivot to support a run the first major resistance level at $11,746.

Support from the broader market would be needed for Bitcoin to break out from last week’s high $11,505.

Barring another extended crypto rally, the first major resistance level would likely pin Bitcoin back.

In the event of a breakout, Bitcoin could test the second major resistance level at $12,108 before any pullback.

Failure to avoid a fall through the $11,144 pivot would bring the first major support level at $10,782 into play.

Barring an extended sell-off, Bitcoin should steer clear of sub-$10,500 support levels. The second major support level sits at $10,180.

At the time of writing, Bitcoin was up by 0.02% to $11,387.0. A mixed start to the week saw Bitcoin fall to an early Monday morning low $11,360.0 before rising to a high $11,408.0.

Bitcoin left the major support and resistance levels untested at the start of the week.

BTC/USD 12/10/20 Daily Chart

Chainlink

Chainlink rallied by 15.70% in the week ending 11th October. Reversing a 12.95% loss from the previous week, Chainlink ended the week at $10.8756.

It was a mixed start to the week. Chainlink rose to a Monday high $9.7076 before hitting reverse.

Falling well short of the major resistance levels, Chainlink fell to a Tuesday intraweek low $8.3827 before making a move.

While steering clear of the first major support level at $7.99, Chainlink fell through the 62% FIB of $8.5.

Finding support on Wednesday, Chainlink rallied to a Sunday intraweek high $11.0437 before easing back.

Breaking back through the 62% FIB, Chainlink also broke through the first major resistance level at $10.94.

A Sunday pullback, however, saw Chainlink wrap up the week at sub-$10.90 levels.

6-days in the green that included a 9.01% rally on Friday delivered the upside. An 8.86% slide on Monday limited the upside for the week, however.

For the week ahead

Chainlink would need to avoid a fall through the $10.10 pivot level to support a run at the first major resistance level at $11.82.

Support from the broader market would be needed, however, for Chainlink to break out from last week’s high $11.0437.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of a breakout, Chainlink could test resistance at $12.00 before any pullback. Chainlink will likely fall well short of the second major resistance level at $12.76 and the 38.2% FIB of $12.9, however.

Failure to avoid a fall through the $10.10 would bring the first major support level at $9.16 and 62% FIB of $8.5 into play.

Barring an extended crypto market sell-off, however, Chainlink should steer clear well clear of sub-$8.5 levels.

At the time of writing, Chainlink was down by 0.91% to $10.7764. Chainlink fell from an early Monday morning high $10.8667 to a low $10.6968.

Chainlink left the major support and resistance levels untested at the start of the week.

LINK/USD 12/10/20 Daily Chart

The Crypto Daily – The Movers and Shakers – October 12th, 2020

Bitcoin, BTC to USD, rose by 0.68% on Sunday. Following on from a 2.14% rally on Saturday, Bitcoin ended the week up by 6.53% to $11,385.0.

It was a bullish start to the day. Bitcoin rose to a mid-afternoon intraday high $11,451.0 before easing back.

Falling short of the first major resistance level at $11,518, Bitcoin fell to a late intraday low $11,279.5.

Steering well clear of the first major support level at $11,084, Bitcoin briefly moved back through to $11,400 levels before easing back. The late recovery delivered the upside on the day.

The near-term bullish trend remained intact, supported by the latest move back through to $11,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $6,400 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Sunday.

Crypto.com Coin (-0.51%) and Polkadot (-0.80%) bucked the trend on the day.

It was a bullish day for the rest of the majors, with Chainlink and Litecoin rallying by 3.33% and by 3.32% to lead the way.

Binance Coin (+0.46%), Bitcoin Cash ABC (+0.48%), Bitcoin Cash SV (+0.26%), Cardano’s ADA (+1.61%), Ethereum (0.98%), and Ripple’s XRP (+0.54%) also joined Bitcoin in the green.

For the week, it was also a mixed bag for the majors.

Binance Coin (-1.52%) and Polkadot (-4.49%) saw red for the week.

It was a bullish week for the rest of the pack, however.

Cardano’s ADA (+10.15%) and Chainlink (+15.7%) led the way, with Bitcoin Cash ABC (+7.47%) and Litecoin (+8.07%) also seeing solid gains.

Bitcoin Cash SV (+6.21%), Crypto.com Coin (+5.09%), Ethereum (+6.23%), and Ripple’s XRP (+3.07%), trailed the front runners.

In the week, the crypto total market slid to a Wednesday low $322.55bn before rising to a Saturday high $357.46bn. At the time of writing, the total market cap stood at $351.25bn.

Bitcoin’s dominance fell to a Monday low 59.15% before rising to a Tuesday high 61.29%. At the time of writing, Bitcoin’s dominance stood at 59.95%.

This Morning

At the time of writing, Bitcoin was down by 0.01% to $11,384.0. A mixed start to the day saw Bitcoin rise to an early morning high $11,388.0 before falling to a low $11,360.0

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Binance Coin (+1.25%) and Bitcoin Cash SV (+0.30%) bucked the trend early on.

It was a bearish start for the rest of the majors, however.

At the time of writing, Chainlink was down by 1.43% to lead the way down.

BTC/USD 12/10/20 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid a fall through the pivot level at $11,372 to bring the first major resistance level at $11,464 into play.

Support from the broader market would be needed, however, for Bitcoin to break back through to $11,400 levels.

Barring an extended crypto rally, the first major resistance level and Sunday’s high $11,451 would likely cap any upside.

In the event of another crypto breakout, Bitcoin could test resistance at $11,500 and the second major resistance level at $11,543.

Failure to avoid a fall through the $11,372 pivot would bring the first major support level at $11,293 into play.

Barring an extended crypto sell-off, however, Bitcoin should steer clear of sub-$11,200 levels. The second major support level sits at $11,200.

The Rise of Defi: Powering the Next Crypto Boom

After a number of years of consolidation across the cryptomarket, new innovative protocols are drawing interest.

The interest has created a new crypto hype that is more than just reminiscent of the 2017 ICO boom.

As was the case back in 2017, there are a mass number of protocols hitting the crypto market.

This time around, the focus has shifted away from the CeFi space to DeFi. Decentralized Finance, better known as DeFi has become the buzz word of 2020.

Bitcoin and the broader crypto market delivered blockchain technology and decentralization. There was, however, an element of centralization in the CeFi space. Centralized finance became laden with governance and KYC/AML requirements and more in order to meet investor and government demands.

DeFi, by contrast, currently stands as truly decentralized. With an ethos of Permissionless and Trustless, there is no actual governance. And, there are no KYC/AML requirements. In fact, to access decentralized finance all a user needs is a wallet.

In concept alone, it is a mouthwatering prospect. True cryptocurrencies have yet to really make a dent in fiat money’s unwavering position as a primary payment source.

When considering the unbanked, the disgruntled, and the anonymous, however, DeFi may well give the banking sector a run for its money.

The Projects and the Returns

As entrepreneurs and scam artists enter the world of DeFi, a number of protocols have caught the eye amidst the mist…

While there are no guarantees that these protocols will be here tomorrow, there is the hope and with it the dream of incredible earnings potential.

Based on DeFi market caps from Coingecko, some of the more promising protocols that have enjoyed early success. These include:

Chainlink (“LINK”)

Chainlink sits at the top of the DeFi coin charts at the time of writing. Not only is Chainlink at the top of the DeFi list, but Chainlink’s meteoric rise has also seen it join the crypto giants in the top 10 by market. CoinMarketCap has Chainlink currently sitting at number 8, impressively outgunning the likes of Litecoin…

Year-to-date return: 473.2% to the end of day 28th September 2020.

What’s the hype? With DeFi driven by smart contracts, Chainlink connects smart contracts to data sources. Additionally, users can send payments from a smart contract to bank accounts and payment networks.

Dai

Dai sits at number 3 on the DeFi market cap table and is ranked at number 25 on the CoinMarket Cap.

Year-to-date: Investors will have missed gains from elsewhere, however, with Dai up by just 2.02%.

Why the lowly return? Dai is decentralized and backed by collateral. In other words, Dai is a stablecoin and as such, looks to maintain a value of $1.00. The position by market cap, however, reflects the degree of adoption across the DeFi space.

Uniswap (“UNI”)

Uniswap comes in at number 6 and number 42 on the CoinMarketCap ranking.

New to the market and launched on 17th September, founding investors have received a return of 1,318%.

The protocol allows investors to supply liquidity and to swap tokens.

Yearn.finance (“YFI”)

Yearn.finance sits at number 4 on the DeFi market cap list and number 27 in the crypto CoinMarketCap ranking.

New to the market, with a launch date of July 2020, YFI has delivered genesis investors a since launch return of 2,623%.

What’s on the package?

Yearn.finance provides investors with an array of financial products. These are categorized under:

  • Earn: A yield aggregator that seeks out the best ROI from leading DApps.
  • ZAP: Allows investors to swap between assets, whilst saving on gas fees.
  • Vaults: Delivers returns from liquidity mining and higher yields from more aggressive investments.
  • Cover: Yinsure allows investors to get insurance. A key product in the world of decentralized finance.

The Rest

And there are other worthy protocols worth mentioning including Synthetix, Ox, Oracle, Kava, Band, and Aava

In addition to viewing the DeFi rankings by market cap, DeFi Pulse provides a platform for protocols to list. Here, you are given a brief summary of what the protocol delivers and a direct link to the webpage.

The Road Ahead

While a number of these protocols will likely survive the early boom days, there are many that will fall by the wayside.

Investors only need to go back 3-years to the ICO boom of 2017 to get a glimpse of what likely lies ahead.

Just like back in 2017, however, talk of 1,000% returns are drawing investors back into the crypto world. For those, who entered the 2017 boom late, it may take a little longer, however.

At present, market leaders report the large existence of scammers and Ponzi schemes in the DeFi space. The current upward trend in DeFi’s market cap suggests that investors are willing to take another bite of the cherry.

Unlike investing in CeFi protocols, however, DeFi is a Trustless and Permissionless space. This means that there is little to no governance, testing, auditing, etc. It, therefore, means that some of the protocols drawing investor money could vanish in weeks, if not days.

For that very reason, investors are seeing exception returns. The protocols are drawing investors into the DeFi space, wooing them with double-digit returns from the least risky products on offer.

These include Yield Farming and Liquidity Pooling that puts the cherry on the top for investors today.

When considering the fact the DeFi is still niche, the rally may have some way to go. This is assuming, of course, that the victims of the 2017 crypto meltdown lick their wounds and return to the fray…

With platforms such as Binance setting up US$100m funds to seed new projects and fund development, the future of DeFi does look bright. It does not mean, however, that there will not be any cautionary tales.

The Crypto Daily – Movers and Shakers – October 11th, 2020

Bitcoin, BTC to USD, rallied by 2.14% on Saturday. Following on from a 1.17% gain on Friday, Bitcoin ended the day at $11,308.0

It was a bullish start to the day. Bitcoin rallied from an intraday low $11,071.0 to an early morning intraday high $11,505.0.

Steering clear of the major support levels, Bitcoin broke through the first major resistance level at $11,186 and the second major resistance level at $11,300.

Hitting resistance at $11,500, Bitcoin fell back to sub-$11,300 levels before finding support in the afternoon.

A move back through to $11,400 levels was brief, however, with Bitcoin falling back to end the day at $11,300 levels.

The second major resistance level at $11,300 delivered support late in the day.

The near-term bullish trend remained intact, supported by the latest move back through to $11,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $6,400 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Saturday.

Cardano’s ADA rallied by 3.65% to lead the way. Crypto.com Coin (+2.10%) and Litecoin (+2.26%) weren’t far behind.

Bitcoin Cash ABC (+0.53%), Bitcoin Cash SV (+1.47%), Chainlink (+1.01%), Ethereum (1.48%), and Ripple’s XRP (+0.36%) also joined Bitcoin in the green.

Binance Coin (-0.04%) and Polkadot (-2.33%) bucked the trend on the day, however.

In the current week, the crypto total market slid to a Wednesday low $322.55bn before rising to a Saturday high $357.46bn. At the time of writing, the total market cap stood at $350.08bn.

Bitcoin’s dominance fell to a Monday low 59.15% before rising to a Tuesday high 61.29%. At the time of writing, Bitcoin’s dominance stood at 60.04%.

This Morning

At the time of writing, Bitcoin was up by 0.49% to $11,363.0. It was a mixed start to the day. Bitcoin fell to an early morning low $11,297.0 before striking a high $11,402.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Binance Coin (-0.83%), Bitcoin Cash ABC (-0.39%), Crypto.com Coin (-0.39%), Chainlink (-1.14%), and Polkadot (-0.88%) saw red early on..

It was a bullish start for the rest of the majors, however.

At the time of writing, Cardano’s ADA was up by 1.16% to lead the way.

BTC/USD 11/10/20 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid a fall through the pivot level at $11,295 to bring the first major resistance level at $11,518 into play.

Support from the broader market would be needed, however, for Bitcoin to break back through to $11,500 levels.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of another crypto breakout, Bitcoin could test resistance at $11,700 and the second major resistance level at $11,729.

Failure to avoid a fall through the $11,295 pivot would bring the first major support level at $11,084 into play.

Barring an extended crypto sell-off, however, Bitcoin should continue to steer clear of sub-$11,000 levels. The second major support level sits at $10,861.

The Crypto Daily – Movers and Shakers – October 10th, 2020

Bitcoin, BTC to USD, rose by 1.17% on Friday. Following on from a 2.39% rally on Thursday, Bitcoin ended the day at $11,071.0

It was another bearish start to the day. Bitcoin fell to a mid-morning intraday low $10,853.1 before making a move.

Steering clear of the first major support level at $10,666, Bitcoin rallied to a late morning intraday high $11,134.0.

Bitcoin broke through the first major resistance level at $11,096 to visit $11,100 levels before easing back. It was Bitcoin’s first close out at $11,000 levels since 20th September.

The near-term bullish trend remained intact, in spite of the recent pullback to sub-$11,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $6,400 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a bullish day on Friday.

Cardano’s ADA (+5.05%) and Chainlink (+8.89%) led the way.

Binance Coin (+2.31%), Ethereum (4.04%), and Polkadot (+2.39%) weren’t far behind.

Bitcoin Cash ABC (+1.47%), Bitcoin Cash SV (+1.79%), Crypto.com Coin (+0.86%), Litecoin (+1.23%), and Ripple’s XRP (+0.68%) trailed the pack, however.

In the current week, the crypto total market slid to a Wednesday low $322.55bn before rising to a Friday high $346.22bn. At the time of writing, the total market cap stood at $344.02bn.

Bitcoin’s dominance fell to a Monday low 59.15% before rising to a Tuesday high 61.29%. At the time of writing, Bitcoin’s dominance stood at 59.62%.

This Morning

At the time of writing, Bitcoin was up by 0.22% to $11,095.8. A bullish start to the day saw Bitcoin rise from an early morning low $11,071.0 to a high $11,111.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Crypto.com Coin was down by 0.26% to buck the trend early in the day.

It was a bullish start for the rest of the majors, however.

At the time of writing, Cardano’s ADA was up by 2.29% to lead the way.

BTC/USD 10/10/20 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid a fall through the pivot level at $11,019 to bring the first major resistance level at $11,186 into play.

Support from the broader market would be needed, however, for Bitcoin to break out from Friday’s high $11,134.0.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of a crypto breakout, Bitcoin could test the second major resistance level at $11,300.

Failure to avoid a fall through the $11,019 pivot would bring the first major support level at $10,905 into play.

Barring an extended crypto sell-off, however, Bitcoin should continue to steer clear of sub-$10,800 levels. The second major support level sits at $10,739.

The Crypto Daily – Movers and Shakers – October 9th, 2020

Bitcoin, BTC to USD, rallied by 2.39% on Thursday. Following on from a 0.70% gain on Wednesday, Bitcoin ended the day at $10,943.0.

It was a bearish start to the day. Bitcoin fell to an early morning intraday low $10,541.0 before making a move.

The reversal saw Bitcoin fall through the first major support level at $10,603.

Supported by a broad-based crypto rebound, however, Bitcoin rallied to a late afternoon intraday high $10,971.0.

Bitcoin broke through the day’s major resistance levels to wrap up the day at $10,900 levels.

The near-term bullish trend remained intact, in spite of the pullback to sub-$11,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $6,400 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a bullish day on Thursday.

Chainlink (+6.18%) and Polkadot (+4.16%) led the way.

Bitcoin Cash ABC (+2.84%), Cardano’s ADA (+2.75%), and Ethereum (+2.79%) weren’t far behind.

Binance Coin (+0.07%), Bitcoin Cash SV (+0.70%), Crypto.com Coin (+1.97%), Litecoin (+1.50%), and Ripple’s XRP (+1.01%) trailed the pack, however.

In the current week, the crypto total market slid to a Wednesday low $322.55bn before rising to a Thursday high $339.24bn. At the time of writing, the total market cap stood at $334.78bn.

Bitcoin’s dominance fell to a Monday low 59.15% before rising to a Tuesday high 61.29%. At the time of writing, Bitcoin’s dominance stood at 60.12%.

This Morning

At the time of writing, Bitcoin was down by 0.50% to $10,888.6. A mixed start to the day saw Bitcoin rise to an early morning high $10,959.0 before falling to a low $10,885.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was also a bearish start to the day for the broader market.

At the time of writing, Chainlink was down by1.31% to lead the way down.

BTC/USD 09/10/20 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid a fall through the pivot level at $10,818 to bring the first major resistance level at $11,096 into play.

Support from the broader market would be needed, however, for Bitcoin to break through to $11,000 levels.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of a crypto breakout, Bitcoin could test the second major resistance level at $11,248 and resistance at $11,300.

Failure to avoid a fall through the $10,818 pivot would bring the first major support level at $10,666 into play.

Barring an extended crypto sell-off, however, Bitcoin should continue to steer clear of sub-$10,800 levels. The second major support level sits at $10,388.

Bitcoin: Buying Opportunity If It Breaks Higher Or Lower?

These triangle formations tend to serve as trend continuation patterns and since the broader trend is bullish, probability favors a break higher. It is just a matter of the right catalyst.

We entered a new swing trade long at 10,675 and have placed a stop in the low 10Ks to mitigate risk. IF price can take out the consolidation resistance of around the 10,850 area, it is possible to see a short squeeze into the mid to high 11Ks. The current minor bearish movements have a tendency to lure many shorts that are betting against the broader trend. When new buyers enter the market, these shorts will be forced to cover and it is this combination of buying activity that can move price higher quickly.

IF price breaks the consolidation support by clearing the 10,200 area, it is within reason to see a test of the 9850 support. We will be stopped out, BUT looking for a new long position in this area since any bullish reversal patterns here will establish a double bottom or failed low setup.

If you have any questions, please feel free to reach out. Also for our swing trade signals and 7 day free trial, visit here.

Ethereum, Litecoin, and Ripple’s XRP – Daily Tech Analysis – October 8th, 2020

Ethereum

Ethereum rose by 0.26% on Wednesday. Following a 3.69% slide on Tuesday, Ethereum ended the day at $341.68.

A bearish start to the day saw Ethereum slide to an early morning intraday low $332.87 before making a move.

Ethereum fell through the first major support level at $333.23 before rising to a mid-afternoon intraday high of $342.83.

Falling well short of the first major resistance level at $351.83, Ethereum fell back to $336 levels before finding support.

A late move back through to $341 levels reversed losses from the day.

At the time of writing, Ethereum was down by 0.20% to $340.98. A mixed start to the day saw Ethereum rise to an early morning high of $342.36 before falling to a low $340.70.

Ethereum left the major support and resistance levels untested early on.

ETH/USD 08/10/20 Hourly Chart

For the day ahead

Ethereum would need to avoid a fall through the $339.13 pivot to support a run at the first major resistance level at $345.38.

Support from the broader market would be needed, however, for Ethereum to break out from Wednesday’s high $342.83.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

Failure to avoid a fall through the $345.38 pivot would bring the first major support level at $335.42 into play.

Barring another extended sell-off, however, Ethereum should continue to avoid sub-$330 levels. The second major support level sits at $329.17.

Looking at the Technical Indicators

First Major Support Level: $335.42

Pivot Level: $339.13

First Major Resistance Level: $345.38

23.6% FIB Retracement Level: $257

38.2% FIB Retracement Level: $367

62% FIB Retracement Level: $543

Litecoin

Litecoin rose by 1.22% on Wednesday. Reversing a 0.73% fall from Tuesday, Litecoin ended the day at $46.58.

It was a mixed start to the day. Litecoin slid to an early morning intraday low $45.03 before making a move.

Steering clear of the first major support level at $44.97, Litecoin rallied to a late intraday high $46.92.

Falling short of the first major resistance level at $47.64, Litecoin slipped back to end the day at $46.5 levels.

At the time of writing, Litecoin was down by 0.19% to $46.48. A mixed start to the day saw Litecoin rise to an early morning high of $46.64 before falling to a low $46.46.

Litecoin left the major support and resistance levels untested early on.

LTC/USD 08/10/20 Hourly Chart

For the day ahead

Litecoin would need to avoid a fall through the $46.18 pivot to support a run at the first major resistance level at $47.32.

Support from the broader market would be needed, however, for Litecoin to break back through to $47 levels.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of another breakout, Litecoin could test resistance at $48 before any pullback. The second major resistance level sits at $48.07.

Failure to avoid a fall through the $46.18 pivot level would bring the first major support level at $45.43 into play.

Barring another extended sell-off on the day, however, Litecoin should steer clear of sub-$44 levels. The second major support level at $44.29 should limit any downside.

Looking at the Technical Indicators

First Major Support Level: $45.43

Pivot Level: $46.18

First Major Resistance Level: $47.32

23.6% FIB Retracement Level: $45.30

38.2% FIB Retracement Level: $71

62% FIB Retracement Level: $100

Ripple’s XRP

Ripple’s XRP rose by 1.31% on Wednesday. Partially reversing a 2.12% decline from Tuesday, Ripple’s XRP ended the day at $0.24882.

It was also a mixed start to the day. Ripple’s XRP fell to an early morning intraday low $0.24105 before making a move.

Steering clear of the first major support level at $0.2377, Ripple’s XRP rose to a late afternoon intraday high $0.25127.

Falling short of the first major resistance level at $0.2565, Ripple’s XRP fell back to end the day at sub-$0.25 levels.

At the time of writing, Ripple’s XRP was down by 0.28% to $0.24813. A mixed start to the day saw Ripple’s XRP rise to an early morning high of $0.24905 before falling to a low $0.24813.

Ripple’s XRP left the major support and resistance levels untested early on.

XRP/USD 08/10/20 Hourly Chart

For the day ahead

Ripple’s XRP will need to avoid a fall through the $0.2470 pivot to support a run at the first major resistance level at $0.2530.

Support from the broader market would be needed, however, for Ripple’s XRP to break out from Wednesday’s high $0.25127.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of an extended rally, the second major resistance level at $0.2573 would likely come into play. Resistance at $0.26 would likely pin Ripple’s XRP back, however.

Failure to avoid a fall through the $0.2470 pivot would bring the first major support level at $0.2428 into play.

Barring another extended crypto sell-off, Ripple’s XRP should steer clear of sub-$0.24 levels. The second major support level sits at $0.2368.

Looking at the Technical Indicators

First Major Support Level: $0.2428

Pivot Level: $0.2470

First Major Resistance Level: $0.2530

23.6% FIB Retracement Level: $0.3638

38.2% FIB Retracement Level: $0.4800

62% FIB Retracement Level: $0.6678

Please let us know what you think in the comments below.

Thanks, Bob

The Crypto Daily – Movers and Shakers – October 7th, 2020

Bitcoin, BTC to USD, fell by 1.79% on Tuesday. Reversing a 1.12% gain from Monday, Bitcoin ended the day at $10,613.7.

It was a mixed start to the day. Bitcoin rose to an early morning intraday high $10,820 before hitting reverse.

Coming up short the first major resistance level at $10,870, Bitcoin slid to a late intraday low $10,548.0.

Bitcoin fell through the first major support level at $10,691 and the second major support level at $10,574.

Steering clear of sub-$10,500 levels, Bitcoin broke back through the second major support level to end the day at $10,600 levels.

The near-term bullish trend remained intact, in spite of the pullback to sub-$11,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $6,400 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Tuesday.

Crypto.com Coin rose by 0.13% to buck the trend on the day.

It was a bearish day for the rest of the major, however.

Chainlink and Polkadot slid by 8.95% and by 8.29% respectively to lead the way down.

Binance Coin (-3.21%), Bitcoin Cash SV (-2.80%), Cardano’s ADA (-4.71%), Ethereum (-3.69%), and Ripple’s XRP (-2.12%) also saw heavy losses.

Bitcoin Cash ABC (-1.16%) and Litecoin (-0.73%) saw relatively modest losses.

At the start of the week, the crypto total market rose to a Monday high $335.65bn before sliding to a Tuesday low $324.30bn. At the time of writing, the total market cap stood at $325.65bn.

Bitcoin’s dominance fell to a Monday low 59.28% before rising to an early Wednesday high 60.23%. At the time of writing, Bitcoin’s dominance stood at 60.17%.

This Morning

At the time of writing, Bitcoin was down by 0.11% to $10,602.0 A bearish start to the day saw Bitcoin fall from an early morning high $10,616.0 to a low $10,596.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day. Bitcoin Cash SV was up by 0.61% to buck the trend early on.

It was a bearish start for the rest of the majors, however.

At the time of writing, Crypto.com Coin was down by 1.48% to lead the way down.

BTC/USD 07/10/20 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to move through the pivot level at $10,661 to bring the first major resistance level at $10,773 into play.

Support from the broader market would be needed, however, for Bitcoin to break back through to $10,700 levels.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of a crypto breakout, Bitcoin could test resistance at $10,800 before any pullback. The second major resistance level sits at $10,933.

Failure to move through the $10,661 pivot would bring the first major support level at $10,501 into play.

Barring another extended crypto sell-off, however, Bitcoin should steer clear of sub-$10,400 support levels. The second major support level sits at $10,389.

Q3 2020 Recap: Bitcoin Continues Rising Despite Global Uncertainty

Bitcoin Investors Gain 18% Returns in Q3

Bitcoin provided investors the opportunity to grasp a Q3 return of more than 18% even with the substantial losses that came in September. Although the so-called “September Effect” was quite significant, it seems like nothing can prevent BTC from achieving its upside potential.

The pioneer cryptocurrency kicked off the third quarter of the year, hovering around $9,134.88. While prices were mostly contained within a narrow trading range throughout July, the Bollinger bands squeeze on the daily chart suggested that a major price movement was underway. It was until the end of the month that a breakout finally materialized.

Indeed, Bitcoin was able to slice through the $9,500-$9,000 trading range in an upward direction on July 22nd. The breakout was followed by a considerable spike in the buying pressure behind BTC, allowing prices to shoot up by nearly 31.50%. By August 17th, the bellwether cryptocurrency had made a new yearly high of $12,475.91.

Such a milestone was met with a high number of sell orders that were able to contain rising prices at bay. What followed was a 10.80% nosedive that saw Bitcoin retrace to $11,130.34. This price hurdle served as strong support, letting prices rebound and take another aim at the infamous $12,000 resistance level.

On September 1st, BTC had surged 8.43% from the support level previously mentioned to move just a few dollars above the $12,000 mark. But just as it has happened since 2010, it seems like the “September Effect” came into play, crushing bulls’ dreams of higher highs. The exponential increase in sell orders across the board pushed prices down by 18.38%.

As a result, Bitcoin dipped below the psychological $10,000 support level for the first time since July. Sidelined investors seem to have taken advantage of the low prices to re-enter the market. As buy orders began to get filled, BTC was able to recover some of the losses incurred and close Q3 at $10,791.74.

Uncertainty Reigns in the Market

Regardless of the significant returns that Bitcoin was able to generate in Q3, investors remain uncertain about what the future holds. U.S. President Donald Trump has tested positive for COVID-19, and his ability to participate in the upcoming elections may put in danger the stability of the global financial markets. Even though Bitcoin has served as a hedging asset before, it remains to be seen how it will react to the U.S. presidential elections’ results.

From a technical perspective, BTC’s price action will be decided by its ability to break out of the $11,130-$10,330 range where it has been contained over the past two weeks. On the upside, it would likely aim for the $12,500 resistance level, but if sell orders begin to pile up, Bitcoin could plunge to $9,500. Therefore, it is imperative to wait for a clear break of this trading pocket to determine whether the uptrend will resume.

Konstantin Anissimov, Executive Director at CEX.IO

For a look at all of today’s economic events, check out our economic calendar.

Bitcoin and Binance Coin – Weekly Technical Analysis – October 5th, 2020

Bitcoin

Bitcoin fell by 1.08% in the week ending 4th October. Following on from a 1.21% decline from the week prior, Bitcoin ended the week at $10,687.0.

It was a mixed but bearish start to the week. Bitcoin rose to a Monday intraweek high $10,986.0 before hitting reverse.

Coming up short of the first major resistance level at $11,151, Bitcoin slid to a Friday intraweek low $10,391.0.

Steering clear of the first major support level at $10,303 Bitcoin revisited $10,700 levels before easing back.

5 days in the red that included a 1.49% loss on Thursday delivered the downside for the week. A 1.33% gain on Tuesday and 1.22% rise on Sunday offset some of the losses from earlier in the week, however.

For the week ahead

Bitcoin would need to avoid a fall back through $10,688 pivot to support a run the first major resistance level at $10,985.

Support from the broader market would be needed for Bitcoin to break back through to $10,900 levels.

Barring an extended crypto rally, the first major resistance level and resistance at $11,000 would likely pin Bitcoin back.

In the event of a breakout, Bitcoin could test the second major resistance level at $11,283 before any pullback.

Failure to avoid a fall back through the $10,688 pivot would bring the first major support level at $10,390 into play.

Barring an extended sell-off, Bitcoin should steer clear of sub-$10,300 support levels. The second major support level sits at $10,093.

At the time of writing, Bitcoin was up by 0.36% to $10,726.0. A bullish start to the week saw Bitcoin rise from an early Monday morning low $10,680.0 to a high $10,758.0.

Bitcoin left the major support and resistance levels untested at the start of the week.

BTC/USD 05/10/20 Daily Chart

Binance Coin

Binance Coin rallied by 10.44% in the week ending 4th October. Reversing a 0.30% loss from the previous week, Binance Coin ended the week at $28.99.

It was a mixed start to the week. Binance Coin fell to a Monday intraweek low $25.27 before finding support.

Steering clear of the first major support level at $23.15 and the 38.2% FIB of $23.5, Binance Coin rallied to a Wednesday intraweek high $29.83.

Binance Coin broke through the first major resistance level at $28.17 and the 23.6% FIB of $27.5 before hitting reverse.

The reversal saw Binance Coin fall back to sub-$26 levels before a bullish end to the week.

The bullish end saw Binance Coin break back through the 23.6% FIB of $27.5 and the first major resistance level at $28.17.

5-days in the green that included a 7.07% rally on Tuesday delivered the upside. A 6.15% slide on Thursday limited the upside for the week, however.

For the week ahead

Binance Coin would need to avoid a fall through the $28.03 to support a run at the first major resistance level at $30.79.

Support from the broader market would be needed, however, for Binance Coin to break out from last week’s high $29.83.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of another breakout, Binance Coin could test the second major resistance level at $32.59 and $33 levels before any pullback.

Failure to avoid a fall through the $28.03 would bring the 23.6% FIB of $27.50 and the first major support level at $26.23 into play.

Barring an extended crypto market sell-off, however, Binance Coin should steer clear of sub-$25 support levels. The second major support level sits at $23.47, with the 38.2% FIB of $23.50 also unlikely to be tested.

At the time of writing, Binance Coin was up by 0.80% to $29.22. A Bullish start to the week saw Binance Coin rise from a Monday morning low $28.84 to a high $29.38

Binance Coin left the major support and resistance levels untested at the start of the week.

BNB/USD 05/10/20 Daily Chart

The Crypto Daily – Movers and Shakers – October 5th, 2020

Bitcoin, BTC to USD, rose by 1.22% on Sunday. Reversing a 0.26% fall from Saturday, Bitcoin ended the week down by 1.08% to $10,678.0.

It was a mixed start to the day. Bitcoin fell to an early morning intraday low $10,541.0 before finding support.

Steering clear of the first major support level at $10,509, Bitcoin rose to a mid-morning high $10,676.0.

Bitcoin broke through the first major resistance level at $10,612 and the second major resistance level at $10,666.

A pullback through the late morning saw Bitcoin fall back through to sub-$10,600 levels going into the afternoon.

Through the 2nd half of the day, Bitcoin rallied to a late intraday high $10,713.0 before easing back to end the day at $10,680 levels.

The rally saw Bitcoin break back through the first and second major resistance levels.

The near-term bullish trend remained intact, in spite of the latest pullback to sub-$11,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $6,400 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a bullish day on Sunday.

Ripple’s XRP rallied by 6.50% to lead the way.

Binance Coin (+2.80%), Cardano’s ADA (+3.71%), and Litecoin (+2.52%) also found strong support.

Bitcoin Cash ABC (+0.73%), Bitcoin Cash SV (+1.23%), Chainlink (+1.38%), Crypto.com Coin (+0.48%), Ethereum (+1.82%), and Polkadot (+1.48%) trailed the front runners.

For the week, it was a mixed bag for the majors, however.

Binance Coin rallied by 10.44% to lead the way, with Litecoin (+1.35%) and Ripple’s XRP (+1.86%) also making gains.

It was a bearish week for the rest of the pack, however.

Chainlink led the way down, sliding by 12.95%.

Bitcoin Cash ABC (-3.71%), Bitcoin Cash SV (-5.46%), Cardano’s ADA (-4.39%), Crypto.com Coin (-4.53%), Ethereum (-1.41%), and Polkadot (+1.98%) also joined Bitcoin in the red.

In the week, the crypto total market rose to a Thursday high $344.75bn before falling to a Friday low $320.03bn. At the time of writing, the total market cap stood at $334.06bn.

Bitcoin’s dominance fell to a Thursday low 58.73% before rising to a Friday high 60.02%. At the time of writing, Bitcoin’s dominance stood at 59.31%.

This Morning

At the time of writing, Bitcoin was up by 0.27% to $10,716.0. A bullish start to the day saw Bitcoin rally from an early morning low $10,680.0 to a high $10,758.0.

Bitcoin tested the first major resistance level at $10,753 early on.

Elsewhere, it was a mixed start to the day.

Litecoin was down by 0.30% to buck the trend early on.

It was a bullish day for the rest of the majors, however.

At the time of writing, Cardano’s ADA was up by 2.39% to lead the way.

BTC/USD 05/10/20 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid a fall back through the pivot level at $10,647 to bring the first major resistance level at $10,753 back into play.

Support from the broader market would be needed, however, for Bitcoin to hold onto $10,700 levels.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of a crypto breakout, Bitcoin could test the second major resistance level at $10,819 before any pullback.

Failure to avoid a fall back through the $10,647 pivot would bring the first major support level at $10,581 into play.

Barring an extended crypto sell-off, however, Bitcoin should steer clear of sub-$10,500 support levels. The second major support level sits at $10,475.

The Future of DeFi: Boom or Bust?

After a slow start, with a number of DeFi protocols having been around for a few years, the segment has recently drawn plenty of attention.

Projects are on the rise and some of the main players within the CeFi space are making sure that they aren’t left behind.

As with any new space, however, the pitfalls are many and the gold rush could be short and sweet.

At the time of writing, simply comparing the market cap of non-stable coins and stable coins shows how far behind DeFi is from CeFi.

Based on numbers at the time of writing, the total market cap of non-stable coins stood at US$310bn. By contrast, the total market cap of stable coins stood at just US$16bn

Some of the main players within the DeFi space predict a 20 fold increase in the market cap of stablecoins. It is, therefore, unsurprising that there is an explosion in the number of protocols hitting DeFi.

The Projects

To view the current protocols launched within DeFi, DeFi Pulse provides a platform for protocols to list.

The list is broken down by function to make it easier for investors to find the protocol of their liking. These categorizations include:

Lending; Trading; Payments; Wallets; Interfaces; Infrastructure; Assets; and Scaling.

Additionally, there are the following categories to assist DeFi communities or new entrants:

Analytics; Education; Podcasts; Newsletters; and Communities.

While the projects are readily accessible, with DeFi Pulse making it easier for DeFi investors, key risks exist.

As a result of the very nature of DeFi, which is Permissionless and Trustless, not all of the protocols are audited.

Without governance and the anonymous nature, the protocol developers are anonymous. This has led to a vast number of scams and Ponzi schemes. Akin to any industry, bad news and dishonest participants tend to slow progress and, in particular, adoption.

Due to the sheer number of projects coming to the market, we, therefore, expect a period of consolidation. Many of the main players within the DeFi space expect that the vast majority of the existing projects will eventually fail.

What to look out for

When considering the view that a large number of scams and Ponzi schemes exist, there are ways to at least mitigate some of the risks.

These would include:

  • Avoid protocols that are unaudited or unverified: While DeFi is a Trustless and Permissionless world, the more serious projects provide investors with the necessary comfort.
  • Look for projects with longer vesting and incentive periods: Projects with vesting periods of as little as 2-weeks are unlikely to be there in a few months, let alone a few years. The anonymous founders will take their money and run… The same view is taken on incentives given to protocol communities. Within the DeFi space, it is the communities that are of greater importance. Short-term incentive schemes will not keep a community together for the longer-term. This should be considered negative.
  • Look for innovative protocols: The key to the success of DeFi is to deliver protocols over and above those available within the CeFi and banking space. Finding protocols that bring innovative financial services to the DeFi space will find support. This is assuming that they address the issues raised above.
  • Reputable Communities: As previously mentioned, communities are key to the success of a project. Not only must they be appropriately incentivized but they must also be reputable.
  • Governance and Transparency: Alongside the communities, some sort of governance is also needed. That should come from a degree of transparency in the early years before becoming fully Permissionless and Trustless.

The Risks

As with anything nascent, there are plenty of risks associated with DeFi. An advantage for the DeFi space, however, is certainly the lessons learned from the ICO boom.

For the DeFi space key risks and threats to its evolution include:

  • Bad news: As with any investment opportunity, bad news does not help. The ever-present threat of scams and hacks leave DeFi exposed to unscrupulous participants. News of thefts and hacks would give DeFi a bad name and put its advancement back by years.
  • Blockchain constraints: Ethereum’s blockchain is already at capacity. This means that the market requires a degree of fragmentation. Currently, Tron’s blockchain is the next viable alternative. Ensuring that there is not a complete fragmentation is important, however. A degree of specialization would be an acceptable solution. Here different blockchains would support different sectors…
  • Vesting and incentive periods: As previously discussed these would need to tie in developers and communities for the long haul. A cut and run mentality would slow the evolution and adoption of DeFi.
  • Financial Risk: Investors are currently exposed to the risk of significant loss. The developers and communities can mitigate some of the risks by:
    • Carrying out greater testing and verification to eliminate debilitating bugs.
    • Provide insurance to protect investor capital.
    • Educate: Vastly increase the education currently available on DeFi.
  • Platform Access: Simplify access to DeFi. The more user-friendly the greater the degree of user comfort. This is another avenue to build trust in the Trustless world of DeFi.

Looking Ahead

When considering the risks associated with DeFi, these are not wholly different from those seen in the CeFi space.

The key to the success of DeFi is to deliver communities with solutions that are also available in the CeFi and banking space. At a minimum, DeFi must deliver viable alternatives that deliver greater earning power.

Additionally, DeFi will need to be far more innovative and offer protocols that address the shortcomings of both CeFi and banks. In essence, this would be the development and mass adoption of automated asset managers.

Communities don’t need people but smart contracts that are able to locate the best earnings power across DeFi.

Coupled with smoother user experience, zero gas fees, and addressing the issue of unaudited smart contracts, the future does look bright.

DeFi will need to experience some consolidation, however. As was the case in the .Com and ICO booms, a large number of the DeFi projects will not last.

To prevent a DeFi implosion, however, developers and communities must address existing blockchain constraints. There will also need to be a greater degree of auditing, addressing vesting and incentive periods, and the availability of insurance to protect investors.

Fishing out the scammers and Ponzi schemes with limited reputational damage to DeFi will also be a must.

The Positives

Having said that, there are certainly some positives that yield optimism. These include:

  • Speed of innovation: While currently lagging CeFi, market leaders expect DeFi to grow exponentially relative to CeFi.
  • The benefit of hindsight: DeFi can take the lessons learned from CeFi and the ICO boom and avoid the same mistakes.
  • Early Awareness: There is early awareness of some of the key DeFi risks. This gives communities the opportunity to mitigate the risks quickly to support growth.
  • Education: As the news wires report huge earnings potential, the education side is also improving. There is yet the widespread awareness needed, however, to compete with the banking sector. DeFi remains a niche space today and will likely remain so for the near-term.

When considering the risks and the positives, addressing these while continuing to offer a greater earnings multiple would support a positive future for DeFi.

There is a sizeable audience that DeFi can capture with relative ease. Target audiences would include:

  • The non-banked: At the time of writing, the World Bank estimated 1.7bn people with access to basic banking. In the DeFi world, all a user would need is a mobile phone or a computer. There are no KYC or AML requirements…
  • CeFi Users: For CeFi users, a migration to DeFi seems a natural one. Once DeFi has gone through its teething problems it is hard to envisage CeFi keeping up.
  • Disgruntled banking customers: This is possibly the largest target audience of them all. For DeFi, the inflection point is expected to be when users don’t know that they are on DeFi. At this point, the banking community and CeFi may well find themselves in the history books.

In conclusion

We don’t expect a bust. The more innovative and transparent projects will likely enjoy longevity.

There is undoubtedly going to be some pain ahead, however, something that is hard to avoid in the early days.

As with blockchain and cryptos, the concepts are right and so it rests in the hands of innovators to deliver.

One curveball to consider, as always, is whether governments and central banks will allow the untimely demise of the global banking system.

If we learned anything from back in 2017 and 2018, anonymity within the world of finance is a no-no for governments.

How this plays out may eventually decide the fate of DeFi

The Crypto Daily – Movers and Shakers – October 4th, 2020

Bitcoin, BTC to USD, slipped by 0.26% on Saturday. Following on from a 0.44% decline on Friday, Bitcoin ended the day at $10,558.6.

It was a relatively range-bound day on Saturday. Bitcoin fell to a mid-morning intraday low $10,513.0 before finding support.

Steering clear of the first major support level at $10,423, Bitcoin rose to a late afternoon intraday high $10,616.0.

Falling well short of the first major resistance level at $10,718, Bitcoin fell back to sub-$10,600 levels and into the red.

The near-term bullish trend remained intact, in spite of the latest pullback. For the bears, Bitcoin would need to slide through the 62% FIB of $6,400 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Saturday.

Binance Coin rose by 3.18% to lead the way.

Cardano’s ADA (+0.52%), Chainlink (+0.52%), Ethereum (+0.13%), and Litecoin (+1.47%) also found support.

It was a bearish day for the rest of the majors, however.

Polkadot slid by 1.28% to lead the way down.

Bitcoin Cash ABC (-0.93%), Bitcoin Cash SV (-0.36%), Crypto.com Coin (-0.14%), and Ripple’s XRP (-0.57%) also joined Bitcoin in the red.

In the current week, the crypto total market rose to a Thursday high $344.75bn before falling to a Friday low $320.20bn. At the time of writing, the total market cap stood at $328.15bn.

Bitcoin’s dominance fell to a Thursday low 58.78% before rising to a Friday high 59.99%. At the time of writing, Bitcoin’s dominance stood at 59.55%.

This Morning

At the time of writing, Bitcoin was up by 0.20% to $10,579.4. A mixed start to the day saw Bitcoin fall to an early morning low $10,541.0 before rising to a high $10,580.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Bitcoin Cash ABC (-0.35%), Bitcoin Cash SV (-0.59%), Cardano’s ADA (-0.29%), Chainlink (-0.51%), Polkadot (-0.48%), and Ripple’s XRP (-0.03%) saw red early on.

It was a bullish start for the rest of the majors, however.

At the time of writing, Binance Coin was up by 0.54% to lead the way.

 BTC/USD 04/10/20 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid a fall back through the pivot level at $10,563 to bring the first major resistance level at $10,612 into play.

Support from the broader market would be needed, however, for Bitcoin to break back through to $10,600 levels.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of a crypto breakout, Bitcoin could test the second major resistance level at $10,666 and resistance at $10,700 before any pullback.

Failure to avoid a fall back through the $10,563 pivot would bring the first major support level at $10,509 into play.

Barring an extended crypto sell-off, however, Bitcoin should steer clear of sub-$10,400 support levels. The second major support level at $10,460 should limit any downside.