Bitcoin Moves Towards $14K as DBS Opens Crypto Exchange

Minutes after DBS announced its foray into the cryptocurrency exchange business, Bitcoin resumed its uptrend.

Another Bitcoin Rally

The BTC/USD exchange rate added up to $411, or 3.14 percent, to set another year-to-date high just shy of $13,500. The pair corrected lower by $100 amid renewed profit-taking but left the Bitcoin market more bullish than it was at the beginning of this week.

Part of the reason was its overnight sell-off that appeared almost in sync with a similar downside move across the three Wall Street indexes: the S&P 500, the Dow Jones, and the Nasdaq Composite. But unlike its traditional peers, Bitcoin was able to move back into positive territory.

On Tuesday, traders receive more bullish cues from DBS, the most extensive banking corporation in Singapore, announced “DBS Digital Exchange.”

According to its official website, which went offline for unknown reasons, only to resume later, the new DBS venture will offer “trading services from fiat currencies to four of the top digital currencies in circulation – Bitcoin, Bitcoin Cash, Ether, and XRP.”

Analysts Extend Upside Bias

The news helped to revive the bullish sentiment in the Bitcoin market, with top analysts sharing their revised upside targets for the sessions ahead. Alex Saunders, the founder of Nugget News AU, shared a chart that showed BTC/USD in a clear uptrend towards $14,000.

bitcoin, btcusd, xbtusd, btcusdt, cryptocurrency
Bitcoin price outlook, as shared by Alex Saunders. Source: BTCUSD on Coinbase
Bitcoin price outlook, as shared by Alex Saunders. Source: BTCUSD on Coinbase

A pseudonymous daytrader also stretched his Long targets towards $14,000, with stopover profit-taking levels near $13,600 and $13,800.

“Get ready for the ride fam,” the analyst added.

Ronnie Moas, the founder of Standpoint Research, noted that the latest rally pushed the Bitcoin price to its highest level in 16 months. The analyst further highlighted that the cryptocurrency is now just 8 percent away from its three-year high.

“Recent watershed moments including, but not limited to, Square, PayPal, MicroStrategy, and Fidelity are not yet fully priced-in,” he added. “2021 target = $28,000.”

Bitcoin was trading at $13,458 at the time of this writing. It recently rejected a close below $13,350-support.

Polkadot (DOT) Jumps 9% as Altcoins Bleed; What’s Driving This Rally?

Polkadot’s native cryptocurrency DOT was among the biggest gainers in the last 24 hours even as other top altcoin projects reported losses.

The DOT/USD exchange rate rose about 9 percent, hitting $4.93 as its intraday high during the European trading session Tuesday. The rally emerged out of nowhere, with no concrete fundamentals backing it as catalysts, leaving traders focusing on the pair’s technical prospects.

DOT Setups Bullish

One pseudonymous analyst on Twitter called it a breakout above a crucial technical resistance level at $4.50. He stated that he would open fresh Long positions at the flipped support, iterating his short-term bullish outlook on the DOT market.

“I didn’t buy on the initial break out as price action wasn’t exactly clean,” the analyst noted. “Now that the $4.50 resistance has been broken, things are looking much better. [I am] looking for a retest of the level as support to enter.”

DOT, DOTUSD, DOTUSDT, Polkadot, DeFi, cryptocurrency

Polkadot technical trade setup, as shared by PostyXBT. Source: DOTUSD on TradingView.com

Meanwhile, a TradingView contributor saw the latest DOT move as a breakout above a medium-term Descending Trendline resistance. He placed the price action on a Fibonacci retracement graph, churning out a set of ideal supports and resistances as DOT continues its ascent.

DOT, DOTUSD, DOTUSDT, Polkadot, DeFi, cryptocurrency

Polkadot trade outlook by THECRYER. Source: DOTUSD on TradingView.com

“Dot is still performing a good come back as you can see by his multiple bounces on a forming uptrend Line,” the contributor said. “Like always the King is controlling those coins by his dominance so you always have to check BTC before entering a trade and exit fast if a dip happens.”

Market analyst Scott Melker also iterated his DOT price target against BTC about 15 percent higher from where it was trading at the time of this writing. In his outlook published 22 hours ago, the trader said that he is waiting for DOT/BTC to break above its Descending Trendline to target 49,553 sats.

As of now, the pair was trading at 35,871 sats, above the said Trendline resistance.

Fundamental

As a standalone blockchain project, DOT’s parent protocol Polkadot stands among the tallest Ethereum rivals in business. They started earlier in 2017 with a much larger investor base and has since earned a dedicated supporter base.

More recently, a total of five decentralized projects running atop the Polkadot blockchain raised about $18.5 million. While the sum is way lesser than that procured by average Ethereum-based projects, it shows that Polkadot is growing in the right direction, albeit slowly.

“There’s ample opportunity outside of Ethereum, and new Layer-1s can stand out by targeting niche sectors (think Flow and gaming) and bringing radically different designs to the table (the unparalleled flexibility afforded by modular frameworks like Polkadot and Cosmos,” said Messari in its October 2020 report on smart contract platforms.

Singapore’s Biggest Bank Reportedly Plans Bitcoin Trading—How Would BTC React?

DBS Bank Ltd is looking to offer support for Bitcoin as it looks to capitalize on the growing demand for cryptocurrency investments among consumers.

Singapore’s biggest banking corporation unveiled a flagship cryptocurrency trading service, dubbed as DBS Digital Exchange, in a “soft-launch.” It later removed the webpage from public view, leaving the Bitcoin community guessing about the correct timeframe of the launch. (Cached page accessible here)

Based on the information available on the original page, the platform primarily intends to assist SMEs and larger corporations in raising capital via the creation and sale of digitized securities and assets.

Meanwhile, it brings forth “trading services” that allow users to exchange fiat currencies for top cryptocurrencies: Bitcoin, Bitcoin Cash, Ether, and XRP.

“Unlike most digital exchanges today, DBS Digital Exchange does not hold any digital assets,” the platform’s official portal reads. “Instead, all digital assets are kept at DBS Bank, which is globally recognized for its custodial services.”

Bitcoin Adoption Booms

The informal revelation appears almost a month after Taimur Baig–the DBS Bank’s chief economist–openly recognized Bitcoin as people’s hedge against worrisome dollar outflow.

“This thing has fixed circulation, it will not be debased,” said Mr. Baig in September. “People worry about dollar outflow and wondering if they should hold crypto in addition to gold as a safe-haven currency.”

Bitcoin rose by more than 80 percent in 2020 – and by more than 250 percent after the Federal Reserve introduced unlimited bond-buying and near-zero interest policies in March 2020. The cryptocurrency received a further upside boost from the US government after it announced a $2 trillion aid to help Americans through the coronavirus-induced lockdown.

bitcoin, btcusd, xbtusd, btcusdt, cryptocurrency

Bitcoin is trading 80 percent higher YTD on global expansionary policies. Source: BTCUSD on TradingView.com

As the expansionary decisions came into effect, the US dollar lost its value against leading foreign currencies. The greenback’s unattractiveness pushed investors further into the safety of riskier and other safe-haven assets, including Bitcoin.

Bullish

Billionaire investor Paul Tudor Jones, asset management firm StoneRidge, and corporations like MicroStrategy and Square, invested large sums into the Bitcoin sector to effectively replace their cash reserves. PayPal, a global payments giant, also announced its foray into the cryptocurrency sector.

Each event led the Bitcoin prices higher across its spot and derivatives markets. With DBS further hinting to take the cryptocurrency mainstream, and a second stimulus deal underway, Bitcoin’s likelihood of adding more valuation to its market has surged highly.

A $13,500 Bitcoin Looks Inevitable as Price Fixes “Overbought” Worries

A combination of supportive fundamental and technical catalysts are pointing towards an extended Bitcoin bull run.

The BTC/USD exchange rate kicked off the new week in positive territory on signs of institutional adoption, lower sell-off sentiment, and the global market uncertainty over the second coronavirus fiscal aid and the November 3 presidential election.

The pair was up 0.87 percent ahead of the New York opening bell Monday, trading at $13,158. It persistently held onto the gains it made last week on the news of PayPal foraying into cryptocurrency space. The fintech firm’s decision to allow its users to store and spend Bitcoin raised the asset’s demand in the retail market.

As a result, it posted its highest weekly close since 2018, closing more than 13 percent higher.

On-Chain Metrics Boom

Before PayPal, Bitcoin had become a part of the portfolio of many asset management and standalone institutions.

Anthony Pompliano, in a recent note to his Morgan Creek Digital’s clientele, counted StoneRidge, MicroStrategy, Square, and billionaire investor Paul Tudor Jones for their recent exposure in the Bitcoin market. He further stated that the crypto adoption at its current pace could push its price up towards a minimum of $100,000 in the next fifteen months.

Other analysts also presented their respective bull case for Bitcoin, a sentiment that later started reflecting on the cryptocurrency’s blockchain.

Data analysts at Glassnode found that Bitcoin addresses that hold balances of at least 1,000 BTC reached an all-time high on Monday. That showed accumulation at the end of “whales,” albeit they may also include wallets of exchanges and other types of Bitcoin custodian firms.

Meanwhile, another data showing that 98 percent of the unspent Bitcoin now remain in a state of profit further increased the possibilities of investors not selling but holding/accumulating more BTC units.

Bitcoin to $13.5K and Beyond?

What further strengthened Bitcoin’s fundamentals are the prospect of the release of at least $2 trillion in coronavirus aid after the November 3 presidential election.

The massive liquidity leaves a trail of underperforming assets behind. First, an oversupply status reduces the value of the US dollar. Second, the use of liquidity in buying government and corporate bonds subsidizes their yields, thereby making them unattractive for long-term investors. And third, it raises the possibility of higher inflation.

All the three narratives tend to benefit Bitcoin, as the crypto connoisseurs believe. The cryptocurrency’s 200 percent price rally this year also came on the backs of the same fundamentals.

That leads to even stronger technicals, as shown in the chart below.

bitcoin, BTCUSD, XBTUSD, BTCUSDT, cryptocurrency

Bitcoin consolidation pattern suggests upside continuation. Source: BTCUSD on TradingView.com

BTC/USD is now consolidating sideways, with a neutral RSI, in what appears to be two different channels. The first is a Pennant – a small symmetrical triangle that begins wider but converges as the pattern matures. The structure succeeds an uptrend – a flagpole whose height is nearly $1,800.

In the event of a breakout, therefore, Bitcoin could rise by as much as $1,800. That ideally puts the cryptocurrency’s price target around $15,000.

Nevertheless, the second channel appears more constrained to bulls. Dubbed as Ascending Channel, the structure begins when price forms a sequence of higher highs and higher lows amid two parallel trendlines. A breakout from the Pennant could turn artificial upon facing resistance at the upper trendline of the Ascending Channel.

That is near $13,500.

Therefore, Bitcoin has every possibility of hitting $13.5K in the coming sessions, but its upside target remains near $15,000 given the supportive fundamentals of the market.

Analyst Calls for Yearn Finance (YFI) Rally on Bitcoin’s Stabilization Signals

As Bitcoin catches a break after exploding above $13,000 last week, it’s mid-cap rival Yearn Finance (YFI) is looking to rally higher.

The prediction comes from a pseudonymous analyst on Twitter who expects a consolidating Bitcoin to disperse a portion of its bullish sentiment across the altcoin market. YFI, an alternative investment asset to Bitcoin and thousands of its offspring cryptocurrencies, could merely benefit from the capital outflow from the king crypto market.

“[YFI is] honestly not looking so bad at the moment,” the analyst explained. “As though [the] price action is holding above $15K for now, there could be room for a further 20 percent-plus move to the upside. If BTC can consolidate here then there should be room for the majority of [altcoins] to start moving higher.”

The analogy borrows from daytraders’ psychology of trading after every explosive Bitcoin price rally. Many of them sell the leading cryptocurrency at its local high to secure short-term profits in either fiat currencies (US dollar, Euro, etc.) or stablecoins (USDT, USDC, and others).

Others exchange it for oversold altcoins.

YFI Bottoming Out

YFI stands among the underbought tokens despite logging more than 1,000 percent gains in the current year. As its yearly high, the cryptocurrency was trading for as high as $44,003, which prompted traders to take short-term profits.

Around the same time, Bitcoin consolidated and attempted a strong rebound that last week stretched towards the $13,260 level. It reduced the appeal of a majority of altcoin tokens, especially the ones that belong to the decentralized finance space.

The price of YFI fell by as much as 75 percent as a result.

YFI, YFIUSD, YFIBTC, UFIUSDT, cryptocurrency
Yearn Finance trade setup, as presented by the Crypto Cactus. Source: YFIUSD on TradingView.com
Yearn Finance trade setup, as presented by the Crypto Cactus. Source: YFIUSD on TradingView.com

But the pseudonymous analyst illustrated in the chart above that YFI/USDT has already bottomed out near $12,250. The pair is now rebounding higher, a move it could extend further given further support from Bitcoin and other external fundamentals.

Other analysts provided a similar upside outlook for the Yearn Finance’s token. Daytrader Loma stated that YFI’s recent bounce increased its probability of breaking above $15,500, a level it accurately tested during the weekend session.

A pseudonymous chartist also expected YFI to continue its uptrend above the $15,000-level.

Technical Outlook Bullish

Calls for a YFI rebound appeared more specific as the token came closer to confirming a bullish technical pattern on its 4H chart.

YFI, YFIUSD, YFIBTC, UFIUSDT, cryptocurrency
Yearn Finance is forming a Falling Wedge pattern. Source: YFIUSD on TradingView.com
Yearn Finance is forming a Falling Wedge pattern. Source: YFIUSD on TradingView.com

Dubbed as Falling Wedge, the technical structure shows the price in a downtrend, trending inside a set of contracting trendlines.

The more the price falls lower, the slower the trend becomes, as confirmed by the falling volume. At one point, the asset breaks out of the range. After that, it attempts to grow higher by as much as the maximum height of the Wedge.

As the chart above shows, YFI is looking to break above the upper Wedge Trendline. Depending on where it jumps higher, the token would likely surge by 100 percent. That brings the price target roughly near $20,000.

Bitcoin Weekly Technical Setup Shows a Clear Price Target: $19,030

A long-term outlook of the Bitcoin market shows its price hitting $19,030 in the coming sessions.

According to a setup presented by one TradingView contributor, the world’s leading cryptocurrency is in the first stage of an inverse Head & Shoulder (IH&S) breakout. In retrospect, an IH&S pattern appears when the underlying security forms three troughs on a baseline, with the middle one the lowest of all.

Traders treat IH&S as a bullish indicator for its ability to foretell a downtrend reversal. They further expect the pattern to catalyze fresh bull runs while eyeing upside targets of as much as height as the size of the middle trough.

And that is where things start turning super-bullish for Bitcoin.

The Bitcoin Bull Setup

The TradingView analyst noted that the cryptocurrency has already formed an IH&S pattern. It made the left and right troughs during the November 2019-January 2020 and the May 2020-July 2020 trading session, respectively. It also painted a middle trough – the deepest one – during the February-March 2020 period.

At the same time, Bitcoin established a baseline (or neckline) at $10,200 after repeatedly testing it as resistance. That completed the IH&S setup, barring the breakout.

Bitcoin, BTCUSD, BTCUDT, cryptocurrency

Bitcoin IH&S setup, as presented by Stargazer_fx. Source: BTCUSD on TradingView.com

As of this week, Bitcoin broke above the neckline, accompanied by moderately higher volumes, a move that confirms a bullish breakout. The analyst noted that BTC/USD is now targetting $13,829, but have a strong likelihood of a full retracement towards the $16,510-level – as per the height of the IH&S pattern.

That move would bring the cryptocurrency in proximity to Bitcoin’s resistance structure from 2017 at $19,030.

“Bitcoin price made a strong break above long-term resistance,” the analyst said. “And, after forming bullish H&S pattern, the price made breakout and retest of the neckline. [Bitcoin] started to grow after the price makes a retest of the structure and holds above the structure, so I expect the price to move higher.”

High Possibility

So far, the fundamentals support the bull run. Bitcoin is trading 236 percent higher from its mid-March nadir of $3,858, supported by the Federal Reserve’s near-zero interest rates, open-ended bond-buying program, and the US government’s $2 trillion coronavirus relief package.

The expansionary policy has shifted many leading institutions and asset management firms to Bitcoin.

Legendary hedge fund investor Paul Tudor Jones revealed that he has allocated 1-3 percent of his $22bn portfolio to the cryptocurrency. Software firm MicroStrategy dumped $425 million worth of its cash reserves to gain exposure in Bitcoin. And even Square, a multinational payments firm, showed $50 million worth BTC in its balance sheets.

Lately, PayPal also announced that it would enable its users to send, receive, buy, sell, and spend Bitcoin via its existing services. The news served as the main reason behind the IH&S breakout.

AAVE Jumps 25% on DeFi Market Comeback; Analysts Predict Bull Run

AAVE was trading higher on Friday, continuing a rebound that followed a massive 45 percent price crash between October 15 and 21.

The decentralized finance token rose by up to 9.87 percent to establish an intraday high above $40. Its latest upside move brought its total retracement up by circa 25 percent, leading analysts to predict an extended bullish momentum.

A pseudonymous daytrader said that he expects AAVE/USD to hit $42 in the near-term. Another one went more bullish with his market outlook, stating that the pair deserves to rise by as much as 200 percent in the long run.

Aave, AAVEUSD, AAVEUSDT, AAVEBTC, cryptocurrency, DeFi
AAVE trade setup, as presented by Limbo. Source: AAVEUSD on TradingView.com
AAVE trade setup, as presented by Limbo. Source: AAVEUSD on TradingView.com

The upside views occurred as most DeFi protocol projects reported recoveries in the price of their native tokens. In the last seven days, the industry as the whole logged an 835 percent rebound after six weeks of depressive price action, according to data fetched by Messari.

AAVE Fundamentals

DeFi tokens also rallied on the news of PayPal entering the cryptocurrency space. After the global payments giant announced that it would enable users to sell, buy, store, and spend digital currencies, the Bitcoin price jumped by almost 11 percent. Simultaneously, the rest of the crypto market, including AAVE, tailed its upside bias.

A renewed demand for DeFi assets was also visible across its liquidity pools. According to data provided by DeFi Pulse, the total valued locked inside the said reserves surged by over $1 billion in the last 48 hours. The AAVE TVL, meanwhile, swelled from $856 million to $1.1 billion.

Aave, AAVEUSD, AAVEUSDT, AAVEBTC, cryptocurrency, DeFi
Total reserves in AAVE pool surge alongside the price. Source: DeFi Pulse
Total reserves in AAVE pool surge alongside the price. Source: DeFi Pulse

Analysts’ bullish outlook also appeared because of AAVE’s parent project’s long-term aspects as a distributed lending protocol. Also called Aave, the project recently attracted $25 million worth of investment Blockchain Capital, Standard Crypto, Blockchain.com ventures, and others.

Aave CEO Stani Kulechov noted that the raised sum would allow their team to build products for institutions, confirming that new investors would participate in the protocol’s governance and staking. That will require them to hold AAVE.

Election

Macro investor Spencer Noon meanwhile predicted a very bullish outcome for DeFi projects, especially after the US presidential election on November 3. He stated:

“The likely inflection point for DeFi Bull Phase 2 is the election, where there are multiple outcomes that would be favorable for risk assets. Until then, farmers will sit in BTC[becuase] it’s low-maintenance and basically a stablecoin compared to what they were trading this summer.”

AAVE, with its astound fundamentals, will likely rise alongside.

Bitcoin Deviates Further Away from Dow, S&P 500 as Price Hits $13K

Bitcoin has wholly sidelined its widely-covered correlation with the US stock market.

On Thursday, the benchmark cryptocurrency sustained its weekly gains as its price surged by more than 1 percent. The move briefly pushed the price above $13,000 before a modest pullback turned it back below the level. But overall, the bias appeared extremely bullish for Bitcoin.

Bitcoin, cryptocurrency, BTCUSD, XBTUSD, BTCUSDT
Bitcoin retests $13,000-resistance in the latest sign of extended upside momentum. Source: BTCUSD on TradingView.com
Bitcoin retests $13,000-resistance in the latest sign of extended upside momentum. Source: BTCUSD on TradingView.com

That is because the price retested the $13K-level twice in over the previous 24 hours. At the same time, Bitcoin showed extreme resilience against sell-off attempts near $12,550, confirming that bulls want to hold the price floor in anticipation of a medium-term upside run.

Bitcoin-Stock Correlation

Conversely, such a bullish momentum was missing across the US stock market. The last 24 hours witnessed the top Wall Street indices closing a daily session in red, and further hinting bearish continuation ahead of the New York opening bell on Thursday.

Futures tied to the S&P 500, the Dow Jones, and the Nasdaq Composite fell in the pre-session trading. While the first two were down 0.12- and 0.06-percent, respectively, the third slipped 0.15 percent.

Dow Jones, Nasdaq, S&P 500, indices
The US Stocks Futures slipped on stimulus worries. Source: TradingView.com
The US Stocks Futures slipped on stimulus worries. Source: TradingView.com

The Wall Street Journal reported that investors are waiting for more signals from the US Congress on a long-delayed fiscal stimulus. Despite several rounds of negotiations between the Democrats and the Republicans, the deal remains stuck.

Earlier, the Federal Reserve Chairman Jerome Powell has warned that the delay in passing the stimulus bill would further decelerate the US economy as it attempts to recover from the aftermath of the coronavirus-induced lockdown.

The US stock market also expects the stimulus as their next catalyst to start a bull run. Even Bitcoin, a non-mainstream financial asset, swelled its market after Congress’s $2 trillion aid in April 2020. That explains the positive correlation between the two.

The Dollar Factor

The most common denominator between Bitcoin and the US equities is the US dollar index (DXY). This year, a drop in the greenback helped in driving investors away from cash and cash-based instruments to riskier assets. That benefited Bitcoin and Wall Street – all at the same time.

But the last two days were different. The DXY declined on Wednesday but it didn’t translate into a rally in the US stock market. Bitcoin, on the other hand, rose from lower $12Ks to as high as $13,200.

The situation was similar on Wednesday. The DXY rebounded on stimulus uncertainty. As a result, the S&P 500, the Dow Jones, and the Nasdaq Composite declined. But Bitcoin remained at higher levels, unaffected by the renewed appetite for the dollar.

Part of the reason is PayPal. The global payments giant tailed its rival Square in voyaging into the cryptocurrency space. It announced on Wednesday that its new services will include the options of buying, selling, storing, and spending Bitcoin.

That somewhat explains why Bitcoin decided to go its own way [for now].

“This pump is organically spot driven,” said Charles Edwards, founder of Capriole Investments. “There is almost no order book resistance. Yes, things can change quickly, it’s crypto. But this is a very healthy move. Something we have never seen before at 12K plus.”

Fin.

Yearn Finance (YFI) Hints Major Rebound as Its Pool Attracts $80M in a Day

Yearn Finance’s native token YFI showed fresh signs of recovery after crashing by up to 72 percent from its all-time high near $44,000.

The decentralized finance cryptocurrency surged by as much as 16.08 percent in the last 48 hours of trading, hitting a local high near $15,171. Its price moves remained volatile, nonetheless, as they seesawed inside a $3,000-trading range.

YFI, YFIUSD, YFIBTC, cryptocurrency, decentralized finance, DeFi

The Yearn Finance token is consolidating upwards inside a Bear Flag range. Source: YFIUSD on TradingView.com

The extreme rejections at local support and resistance levels suggested that YFI is – at best – consolidating. That further pointed to a short-term bias conflict, leaving the market uncertain about its next directional trend.

Divergence Spotted

Trading Tank, a Twitter-based cryptocurrency analysis channel, predicted a bullish outcome for the Yearn Finance token based on a technical outlook. It noted the YFI/USD price downtrend in conflict with its Relative Strength Index (RSI), which was rising (the RSI calculates speed and change of price movements).

Together, the two trends showed a Bullish Divergence. It technically means that bears are losing their bias in the market on a booming bull influence.

YFI, YFIUSD, YFIBTC, cryptocurrency, decentralized finance, DeFi

Yearn Finance's 4H chart illustrates price-RSI divergence. Source: YFIUSD on TradingView.com

“YFI looks promising with that bull div,” Trading Tank tweeted.

A pseudonymous analyst, meanwhile, envisioned YFI trading downwards inside a Falling Wedge pattern. In retrospect, traders consider the Falling Wedge structure as bullish, for it typically leads to a price breakout to the upside – a trend reversal from bearish to bullish.

The analyst noted that YFI has every possibility to log a price rebound of 41 percent. For that to happen, the token would need to keep trading lower while leaving a sequence of lower highs and lower lows behind. Once the price reaches the apex of the Wedge, it would break to the upside.

YFI, YFIUSD, YFIBTC, cryptocurrency, decentralized finance, DeFi

The Yearn Finance token bull setup, as presented by the Crypto Dog. Source: YFIUSD on TradingView.com

That puts YFI’s price target around $6,000 higher from the point of the breakout.

Yearn Finance’s TVL Rebounds

More good news is coming from the fundamental end of the YFI market. According to DeFi Pulse, a portal that tracks the total valued locked (TVL) with different DeFi projects, the Yearn Finance’s liquidity pool attracted about $80 million worth of assets in the last 24 hours.

YFI, YFIUSD, YFIBTC, cryptocurrency, decentralized finance, DeFi

The Yearn Finance TVL as of October 22, 2020. Source: DeFi Pulse

Locking assets with the Yearn Finance pool allows stakers to earn YFI yields in return. They use the tokens to propose and enforce changes on the yield farming aggregation protocol. They can also speculate on the value of YFI by trading it for other cryptocurrencies in the open market.

With the Yearn Finance pool adding more assets, that further hinted at an increase in adoption of the YFI tokens.

Analysts Expect Major Yearn Finance (YFI) Rebound after Subsiding FUD

Yearn Finance’s governance asset, YFI, was flying north during the European session Wednesday even as the token remained under broader downside pressure.

The YFI/USD exchange rate added $430, or 3.33 percent, to grow towards $13,481 as of 1143 UTC. Its gains came as a part of a market-wide uptrend, led by Bitcoin’s surprising move above $12,000, a crucial resistance level that flipped into support. Altcoins tend to tail the Bitcoin trend.

YFI also rose as traders found short-term upside opportunities in its ongoing downtrend (71% drop from YTD high). Earlier this week, the token had plunged by as much as 22.43 percent on Binance. Its slump revived the buying sentiment, for traders expected a small upside retracement to yield attractive intraday gains.

A Strong Rebound Ahead?

The possibilities that some of those traders entered the YFI market with a medium-term risk appetite also grew. A pseudonymous analyst, who self-admittedly was short on YFI, said he would scalp his bearish positions for “oversold bounces” near $12,340.

YFI, YFIUSD, YFIBTC, cryptocurrency, DeFi, Yearn Finance

Yearn Finance trade setup, as presented by Trading Tank. Source: YFIUSD on TradingView.com

Another cryptocurrency analyst, Credible Crypto, raised his expectations of a full-fledged price rebound.

“I think YFI will eventually recover and go on to make new ATH,” he said.

Daytrader Teddy Cleps also expected YFI to bounce back sharply once it finds a concrete support level. He noted that token might fall to as low as $6,226 before bottoming out.

FUD Over?

None of these analysts predicted a zero-value YFI, pointing the responsibility back to its issuing protocol, Yearn Finance.

The yield farming aggregation project faced severe fear, uncertainty, and doubts (FUD) after its founder Andre Cronje’s experimental gaming protocol, Eminence, lost about $15 million of EMN tokens to a bug.

Earlier, traders blamed Mr. Cronje for the security flaw, a sentiment that rippled across the YFI investors as well. Nevertheless, the prolific developer later clarified that people poured the capital into the Eminence smart contracts on their own – especially when he had clarified that the protocol was in a testing phase.

He also said that he is quitting the decentralized finance space altogether after receiving legal threats from EMN speculators.

That left Yearn Finance without a guide for the first time since its launch. Later, the project’s active contributors posted a manifesto, explaining how it would develop – successfully – without central leadership.

“Holding YFI entitles you to signal for real, practical change that improves Yearn. It doesn’t give you the right to tell other contributors what to do. You want something done? Do it.” – the paper stated.

The update projected YFI as a DeFi-version of Bitcoin, another crypto project that, too, exclusively operates on developer consensus – and quite successfully.

Analysts Expect Major Yearn Finance (YFI) Rebound after Subsiding FUD

Yearn Finance’s governance asset, YFI, was flying north during the European session Wednesday even as the token remained under broader downside pressure.

The YFI/USD exchange rate added $430, or 3.33 percent, to grow towards $13,481 as of 1143 UTC. Its gains came as a part of a market-wide uptrend, led by Bitcoin’s surprising move above $12,000, a crucial resistance level that flipped into support. Altcoins tend to tail the Bitcoin trend.

YFI also rose as traders found short-term upside opportunities in its ongoing downtrend (71% drop from YTD high). Earlier this week, the token had plunged by as much as 22.43 percent on Binance. Its slump revived the buying sentiment, for traders expected a small upside retracement to yield attractive intraday gains.

A Strong Rebound Ahead?

The possibilities that some of those traders entered the YFI market with a medium-term risk appetite also grew. A pseudonymous analyst, who self-admittedly was short on YFI, said he would scalp his bearish positions for “oversold bounces” near $12,340.

YFI, YFIUSD, YFIBTC, cryptocurrency, DeFi, Yearn Finance

Yearn Finance trade setup, as presented by Trading Tank. Source: YFIUSD on TradingView.com

Another cryptocurrency analyst, Credible Crypto, raised his expectations of a full-fledged price rebound.

“I think YFI will eventually recover and go on to make new ATH,” he said.

Daytrader Teddy Cleps also expected YFI to bounce back sharply once it finds a concrete support level. He noted that token might fall to as low as $6,226 before bottoming out.

FUD Over?

None of these analysts predicted a zero-value YFI, pointing the responsibility back to its issuing protocol, Yearn Finance.

The yield farming aggregation project faced severe fear, uncertainty, and doubts (FUD) after its founder Andre Cronje’s experimental gaming protocol, Eminence, lost about $15 million of EMN tokens to a bug.

Earlier, traders blamed Mr. Cronje for the security flaw, a sentiment that rippled across the YFI investors as well. Nevertheless, the prolific developer later clarified that people poured the capital into the Eminence smart contracts on their own – especially when he had clarified that the protocol was in a testing phase.

He also said that he is quitting the decentralized finance space altogether after receiving legal threats from EMN speculators.

That left Yearn Finance without a guide for the first time since its launch. Later, the project’s active contributors posted a manifesto, explaining how it would develop – successfully – without central leadership.

“Holding YFI entitles you to signal for real, practical change that improves Yearn. It doesn’t give you the right to tell other contributors what to do. You want something done? Do it.” – the paper stated.

The update projected YFI as a DeFi-version of Bitcoin, another crypto project that, too, exclusively operates on developer consensus – and quite successfully.

Former BitFinex Whale Expects Bitcoin Dump as Price Hits $12K

Bitcoin bulls should expect pain ahead even as the cryptocurrency has added more than $1,000 to its value in the last five days.

Bitcoin, cryptocurrency, BTCUSD, XBTUSD, BTCUSDT
Bitcoin breaks $12,000 in the latest rally. Source: BTCUSD on TradingView.com
Bitcoin breaks $12,000 in the latest rally. Source: BTCUSD on TradingView.com

So says Joe007, a pseudonymous entity that was once the most successful traders on the BitFinex crypto exchange. The former whale noted that the ongoing Bitcoin rally might become the victim of a Long Squeeze – a term which refers to a cascade of selling orders placed after a dramatic price rise.

Long/Short Misproportion

Joe007 published a chart that showed a huge imbalance between the Long and Short orders in the Bitcoin derivative markets. Per the image (as shown below), about 89 percent of the total open BTC/USD positions were Long while the rest were Short.

bitcoin, cryptocurrency, btcusd, xbtusd, btcusdt

Bitcoin Long-Short ratio, as of October 19. Source: Joe007

In retrospect, most futures traders expose themselves to riskier bullish trades in anticipation that investors would keep purchasing Bitcoin at local spot highs. That raises the possibility of whale manipulation – people with better crypto liquidity selling their spot positions at local highs to crash the price, thereby placing derivative traders on the wrong side of the trade, as well.

“I’m all for [pumps] – as long as someone here is actually ready to actually buy bitcoin or two at 20K,” said Joe007. “For actual dollars, you know. Because with a long/short ratio like this, you can’t count on squeezed shorts to do that for you, sorry.”

But some didn’t agree with Joe007, reminding the former whale about hundreds of millions of dollars of capital influx into the Bitcoin market by firms that were looking for a store-of-value alternative other than cash.

Bitcoin Spot Buyers

Last week, Jack Dorsey’s global payments platform Square revealed its $50 million exposure in BTC, while leaving behind guidelines to invest in crypto-assets for other firms. Before that, public-traded firm MicroStrategy had also expanded its Bitcoin investors to $425 million.

One of the respondents referred to these big firms as spot buyers of Bitcoin. He rejected Joe007’s notion that the derivatives markets are driving the ongoing crypto price rally. The ex whale, nevertheless, claimed that retail traders were taking advantage of professional buyers, without realizing that most of them won’t be able to liquidate their positions at an all-time high.

“A lot of “spot buying” is in fact [arbitrage] on either futures basis or GBTC premium,” wrote Joe007. “Someone still needs to provide that primary exit liquidity around ATH. Who would that be, I wonder?”

Joe007 is notorious for his bearish price predictions for Bitcoin. In February 2020, the whale has earned about $10 million in only five minutes by shorting a rising BTC/USD market. His overall portfolio earned $60 million between September 2019 and April 2020.

Nevertheless, Joe007 stopped sharing his trade details after suffering a major blow out of a counter position in May 2020. The trader opened a short contract when the Bitcoin price was rallying from the aftermath of the March 2020 crash.

He suffered $20 million in unrealized losses on that trade.

Bitcoin Briefly Breaks $11.9K on Renewed US Stocks Correlation; $12K Next?

Bitcoin held onto its weekly gains as traders waited for US Congress to agree on the second coronavirus package on Tuesday.

The benchmark cryptocurrency added $67, or 0.5 percent, to trade near $11,827 ahead of the New York opening bell. Likewise, the US stocks inched higher in the pre-trading session, renewing its positive correlation with Bitcoin after the two decoupled briefly on Monday.

Bitcoin did its own thing after the Federal Reserve Chairman Jerome Powell opened up about the possibility of launching a digital dollar. Speaking at a panel discussion held by the International Monetary Fund, Mr. Powell noted that the Fed would launch its digital currency after assessing the security and regulatory risks associated with the upgrade.

Traders interpreted the news as further validation of Bitcoin and its underlying technology, the blockchain. As a result, they raised the bids for the cryptocurrency right around the time Mr. Powell delivering his speech. On the other hand, the Wall Street indexes, including the S&P 500, were trading lower.

Bitcoin, cryptocurrency, BTCUSD, XBTUSD, BTCUSDT
Bitcoin and Its Correlation With SPX, DJI, NDX. and US Dollar Index. Source: DXY on TradingView.com
Bitcoin and Its Correlation With SPX, DJI, NDX. and US Dollar Index. Source: DXY on TradingView.com

US stocks laggingly picked momentum during the Tuesday session. As their futures rose, they allowed Bitcoin to sustain its gains above the crucial support level of $11,700.

Stimulus Deal

Investors remained exposed to riskier assets while anticipating concrete actions from the US Congress on stimulus.

Democrats House Speaker Nanci Pelosi sent a Tuesday deadline for the White House to reach an agreement that would support American businesses and households through the coronavirus-led recession. Otherwise, Ms. Pelosi warned, there wouldn’t be a deal possible before Election Day.

US Treasury Secretary Steven Mnuchin said that the Republicans are edging towards a solution. Nevertheless, whether or not it would translate into a finalized coronavirus aid remained uncertain.

Peter Dixon, an economist at Commerzbank, told the WSJ that the Congress would have to pass “some form of a deal,” adding that the current economic outlook in the US demanded an immediate response from the government.

“We are really running out of time,” he cautioned.

At least today, investors hoped to see some developments in the stimulus discussions. That was visible in the increased biddings of the US stocks, Bitcoin, and even Gold. On the other, intraday demand for the US dollar waned as it fell 0.16 percent against a basket of foreign currencies.

Bitcoin Technical Outlook

The chances for Bitcoin to retest $12,000 grew higher on stimulus hopes. But technically, the cryptocurrency was signaling an imminent pullback.

Bitcoin, cryptocurrency, BTCUSD, XBTUSD, BTCUSDT
Bitcoin price outlook on Tuesday. Source: BTCUSD on TradingView.com
Bitcoin price outlook on Tuesday. Source: BTCUSD on TradingView.com

As shown in the chart above, BTC/USD retested the upper trendline of its Ascending Channel pattern. The level earlier sent the pair lower – after it closed above $11,900. The move indicated that Bitcoin may repeat the bearish fractal all over again.

Another signal, the Relative Strength Indicator (RSI), predicted an imminent correction ahead. The RSI was looking to climb into an overbought area. Technically, it amounts to a downside move.

Hopes for DASH Use in DeFi Staking Pumps Price by 12%

The price of Dash’s native token of the same name jumped 12 percent in the last 24 hours as traders assessed its entry into the booming “DeFi” space.

According to an announcement on Monday, the decentralized autonomous firm entered a partnership with StakeHound, a protocol that creates stake-backed tokens for users looking to access decentralized finance. The duo will enable DASH holders to stake their coins for a wrapped ERC20 crypto called stakedDASH.

Users will be able to trade stakedDASH via decentralized exchanges, including UniSwap, Curve, Aave, and others. At the same time, they will get to earn yields for staking their DASH holdings in the StakeHound pool, which would mean more stakedDASH rewards.

The proposal intends to lift the burden of depositing 1,000 DASH units to create an income-returning Masternode. StakeHound demands a minimum of 1 DASH to earn the yields in stakedDASH. Mark Mason, the Dash project’s marketing manager, said that the partnership would give both DASH and DeFi users access to one another’s markets.

DASH Up

The news helped in creating an optimistic buying sentiment for DASH.

The cryptocurrency opened Monday near $67 but was trading for as high as $79.70 at its intraday high. So it appears, traders assessed that locking more DASH tokens into the StakeHound pool would put a good portion of it out of circulation.

Dash, cryptocurrency, DASHUSD, DASHBTC
DASH pumps higher after its integration into a DeFi project. Source: DASHUSD on TradingView.com
DASH pumps higher after its integration into a DeFi project. Source: DASHUSD on TradingView.com

Meanwhile, its prospects of returning yields in a tradeable stakedDASH token added a use case of the so-called “yield farming.”

“Dash provides an additional on-ramp for DeFi, but more importantly a much-needed off-ramp for DeFi users who wish to easily convert their gains into a well established scarce cryptocurrency with utility beyond the DeFi ecosystem,” said Mr. Mason.

“This allows DeFi users to exchange DeFi tokens for Dash, enabling them actually to spend and use those tokens in the real world,” he added.

Technical Outlook

DASH’s latest pump helped it in breaking above a short-term descending trendline. The strong move upside further allowed the cryptocurrency to extend its bullish target to $87, a level that has capped the price from extending its bullish moments in the second quarter.

Dash, cryptocurrency, DASHUSD, DASHBTC
DASH breaks above its short-term descending trendline. Source: DASHUSD on TradingView.com
DASH breaks above its short-term descending trendline. Source: DASHUSD on TradingView.com

Meanwhile, a renewed selling pressure near the local or extended highs may push the DASH/USD exchange rate lower towards the Descending Trendline, which would now act as support. Even then, the pair could attempt a rebound at $65, a support level.

Failing to bounce back could extend the downside target towards $60.

3 Reasons Why Bitcoin Rebounded, Dollar Slumped Ahead of Powell’s Speech

It is Monday. Bitcoin is holding above crucial technical support at $11,400. Meanwhile, its safe-haven rival, the US dollar, is experiencing a sharp decline.

The inverse correlation between the two stark assets is visible all over again. Only this time, the catalyst that is driving them into different directions is a Jerome Powell speech on the future of cross-border payments at the International Monetary Fund’s (IMF) annual meeting at 8 am ET today.

Here are three possible reasons that may have catalyzed Bitcoin’s recovery and the US dollar’s slump ahead of Powell’s speech.

#1 Pre-Conceived Notions for Bitcoin

The Federal Reserve chairman would likely speak in favor of the digital currencies for their ability to conduct global payment transfers speedily and cheaply. Quantum Economics’ founder, Mati Greenspan, believes that Mr. Powell’s outlook on cryptocurrencies would be vital to understand their future in the US regulatory space.

Independent market analyst Scott Melker also tweeted that he will “definitely be paying attention,” possibly for any cues on how Mr. Powell’s words would impact Bitcoin, the leading cryptocurrency of all.

Traders may have interpreted the analysis as their sign of opening short-term upside positions in the Bitcoin market. On the other hand, the dollar’s decline fueled the intraday bullish sentiment.

#2 China’s Growth

In the hours leading up to the panel meeting, BTC/USD has surged by 1.01 percent to circa $11,524. At the same time, the US dollar index, which pits the greenback against a set of leading foreign currencies, has dipped 0.52 percent to 93.27.

us dollar, us dollar index, dxy, bitcoin
The US dollar experiences a sharp sell-off on Monday. Source: DXY on TradingView.com
The US dollar experiences a sharp sell-off on Monday. Source: DXY on TradingView.com

“The DXY looks kind of weak,” tweeted Michaël van de Poppe, an independent market analyst. “[It] would suit BTC, in general.”

Global reports see the US dollar weaker against the Chinese hedging instruments. The country today reported a 4.9 percent expansion in the third quarter of its economy. Analysts noted that China benefited from its early containment of the coronavirus pandemic, attracting investors looking for a safe-haven against the rising number of infections in the West.

“China is likely to be the sole major economy in the world to register positive growth this year,” Eswar Prasad, a China finance expert at Cornell University, told FT.

As a result, the dollar moved into the offshore markets and fell. Meanwhile, Bitcoin rose because of its inverse correlation with the greenback.

#3 Stimulus Hopes

The dollar also surged lower as Democrats Speaker Nanci Pelosi gave the White House 48 hours before the November 3 presidential election to reach the second coronavirus stimulus deal.

“The 48 only relates to if we want to get it done before the election, which we do,” Ms. Pelosi said. “We’re saying to them, we have to freeze the design on some of these things — are we going with it or not and what is the language? I’m optimistic because again we’ve been back and forth on all this.”

That raised investors’ hopes to see more dollar liquidity in the market, thereby increasing their risk-on appetite in the near-term. With Mr. Powell further taking a stand in favor of more stimulus, investors may have anticipated that he would reiterate his opinions at the IMF panel meeting as well.

It further explains why Bitcoin recovered during the mid-European and pre-New York trading sessions.

3 Reasons Why Bitcoin Rebounded, Dollar Slumped Ahead of Powell’s Speech

It is Monday. Bitcoin is holding above crucial technical support at $11,400. Meanwhile, its safe-haven rival, the US dollar, is experiencing a sharp decline.

The inverse correlation between the two stark assets is visible all over again. Only this time, the catalyst that is driving them into different directions is a Jerome Powell speech on the future of cross-border payments at the International Monetary Fund’s (IMF) annual meeting at 8 am ET today.

Here are three possible reasons that may have catalyzed Bitcoin’s recovery and the US dollar’s slump ahead of Powell’s speech.

#1 Pre-Conceived Notions for Bitcoin

The Federal Reserve chairman would likely speak in favor of the digital currencies for their ability to conduct global payment transfers speedily and cheaply. Quantum Economics’ founder, Mati Greenspan, believes that Mr. Powell’s outlook on cryptocurrencies would be vital to understand their future in the US regulatory space.

Independent market analyst Scott Melker also tweeted that he will “definitely be paying attention,” possibly for any cues on how Mr. Powell’s words would impact Bitcoin, the leading cryptocurrency of all.

Traders may have interpreted the analysis as their sign of opening short-term upside positions in the Bitcoin market. On the other hand, the dollar’s decline fueled the intraday bullish sentiment.

#2 China’s Growth

In the hours leading up to the panel meeting, BTC/USD has surged by 1.01 percent to circa $11,524. At the same time, the US dollar index, which pits the greenback against a set of leading foreign currencies, has dipped 0.52 percent to 93.27.

us dollar, us dollar index, dxy, bitcoin
The US dollar experiences a sharp sell-off on Monday. Source: DXY on TradingView.com
The US dollar experiences a sharp sell-off on Monday. Source: DXY on TradingView.com

“The DXY looks kind of weak,” tweeted Michaël van de Poppe, an independent market analyst. “[It] would suit BTC, in general.”

Global reports see the US dollar weaker against the Chinese hedging instruments. The country today reported a 4.9 percent expansion in the third quarter of its economy. Analysts noted that China benefited from its early containment of the coronavirus pandemic, attracting investors looking for a safe-haven against the rising number of infections in the West.

“China is likely to be the sole major economy in the world to register positive growth this year,” Eswar Prasad, a China finance expert at Cornell University, told FT.

As a result, the dollar moved into the offshore markets and fell. Meanwhile, Bitcoin rose because of its inverse correlation with the greenback.

#3 Stimulus Hopes

The dollar also surged lower as Democrats Speaker Nanci Pelosi gave the White House 48 hours before the November 3 presidential election to reach the second coronavirus stimulus deal.

“The 48 only relates to if we want to get it done before the election, which we do,” Ms. Pelosi said. “We’re saying to them, we have to freeze the design on some of these things — are we going with it or not and what is the language? I’m optimistic because again we’ve been back and forth on all this.”

That raised investors’ hopes to see more dollar liquidity in the market, thereby increasing their risk-on appetite in the near-term. With Mr. Powell further taking a stand in favor of more stimulus, investors may have anticipated that he would reiterate his opinions at the IMF panel meeting as well.

It further explains why Bitcoin recovered during the mid-European and pre-New York trading sessions.

Why a Technical Analyst is Predicting a Sub-$8K Yearn Finance (YFI) Crash

More warnings flashed for Yearn Finance’s governance token YFI even as it showed signs of recovering after an upside weekend session.

Market analyst Teddy Cleps envisioned a waterfall-like trend for YFI/USD, noting that the pair is likely to continue trading lower with anticipations of bouncing back on every support-retest. He further hinted that price floors might trick traders into believing that YFI has bottomed out, but the support with the best possibility of beginning a strong rebound lies $8,000 below the current price levels.

YFI, YFIUSD, YFIBTC, cryptocurrency, DeFi, Yearn Finance
YFI bearish outlook, as presented by Teddy Cleps. Source: YFIUSD on TradingView.com
YFI bearish outlook, as presented by Teddy Cleps. Source: YFIUSD on TradingView.com

“[I’m] waiting for 1) Retrace, and 2) Buying contact with resistance (hopefully new support), [followed by] Invalidation back below the dotted line,” tweeted Mr. Cleps. “Patience is key, no need to rush this.”

The analyst appeared confident about YFI’s long-term aspects as a financial asset. Nevertheless, his short-term outlook for the decentralized finance token raised worries about the long period it would take to pare all the losses back to its record high near $44,000.

YFI/USD has corrected by more than 60 percent from the said price top.

Yearn Finance Fundamentals

Calls for another bearish leg for YFI come as traders show uncertainty over the Yearn Finance’s latest mishaps. Alameda Research and FTX crypto exchange CEO Sam Bankman-Fried noted that investors sold-off their YFI holdings because of three separate but converging reasons.

First, Mr. Bankman-Fried noted a negative sentiment across all the DeFi projects. Almost all of them rose exponentially at a rapid pace earlier this year. That stoked profit-taking sentiment among traders, causing steep declines in every overbought asset, including YFI.

Second, the analyst blamed bad press coverages for fueling the token’s correction further. That included Eminence, a gaming project launched by the Yearn Finance creator Andre Cronje, that lost about $15 million worth of funds locked inside its contracts.

Mr. Cronje, nevertheless, was not seeking anyone to put money into his Eminence contracts, he clarified later, adding that people invested out of their own will, knowing that he was running contracts in a test-stage.

The founder later quit social media.

Third, yields offered by Yield Farming projects plunged heavily during the third quarter. As an aggregator, Yearn Finance relied on higher returns to boost the adoption of YFI. The token’s intrinsic value borrows a portion from the yields generated by the Yearn Finance protocol.

New Influx

YFI entered a stage where the short positions against it surged higher than the long ones. But over the weekend, the Yearn Finance token defied bearish expectations after rebounding 20.66 percent from its local low at $13,124.

YFI, YFIUSD, YFIBTC, cryptocurrency, DeFi, Yearn Finance
Yearn Finance was on the track of paring part of its weekend gains this week. Source: YFIUSD on TradingView.com
Yearn Finance was on the track of paring part of its weekend gains this week. Source: YFIUSD on TradingView.com

The surge appeared after Polychain, an asset management firm, invested about $5 million into the YF market. Some treated the news as a validation of Yearn Finance’s success as a yield-farming project. Market analyst Chad tweeted:

Meanwhile, Jason Choi of the Spartan Group warned that traders should not take Polychain’s YFI investment as their cue to long the token. Instead, they should wait for the firm to increase its holdings of the Yearn Finance token.

“In the short term,” he added, “we still need to break this cycle: Collapsing APY -> TVL drain -> fewer fees -> less value capture by YFI. This will likely continue unless yields return and/or yearn strategies diversify beyond reliance on yCRV vault/ yield farming alone.”

YFI was trading at $14,795 at the time of this writing.

Researcher Explains Why Curve (CRV) and Yearn.Finance (YFI) Are Falling

Curve and yearn.finance are among the few decentralized finance projects that have interesting yield farming products to offer. Their volumes have shot upwards due to consistent community involvement. Nevertheless, the price of their governance tokens is reflecting the boom.

Anil Lulla, co-founder/COO of Delphi Digital – a New York-based digital asset research firm, attempted to provide a potential explanation behind the said divergence. In his latest article, titled “Do Vested Rewards Work,” Mr. Lulla dug into the very token distribution models of Curve and yearn.finance.

Why Curve Crashed?

By putting his focus mainly on Curve and its governance crypto CRV, the researcher noted that the protocol ensures “insane inflation” by releasing about 2 million CRV every day. Nevertheless, it does not offset the supply with vesting, a phenomenon that allows the project to reward long-term stakers.

Mr. Lulla added that the absence of “vested rewards” creates a downside pressure on CRV, for stakers do not feel the need to lock the token in Curve liquidity pools for a longer timeframe. Instead, they dump CRV in open markets, a sentiment that has already brought its value down by 90 percent.

Curve, CRVUSD, CRV
Curve supply and price comparison. Source: Anil Lulla
Curve supply and price comparison. Source: Anil Lulla

The researcher also discussed the massive dumping of HEGIC tokens, after its parent protocol of the same name decided to scrap their plans of vesting. Excerpts from his tweet:

“Almost immediately, the community started complaining and HEGIC started dumping. Just a few hours later, HEGIC announced they’d be returning to a lock-up.”

The Fixing

But a recent flurry of new DeFi projects is attempting to overcome the issue that Curve and yearn.finance carried.

Mr. Lulla named DODO, a liquidity protocol that reserved a part of its total supply for incentive programs for liquidity providers and traders alike. The winnings came with a lockup period of 14 days, after which they vested linearly over the next six months.

“Despite the lock-up, DODO got ~$100M of liquidity from 3K+ wallets,” noted Mr. Lulla.

He also explained how Delphi Digital proposed PowerPool, a DeFi protocol, to scrap their plan of releasing 85 percent of their governance token CVP’s supply soon after liquidity mining.

“Our team published a proposal where 5 percent of total supply currently circulating will only rise by an additional 7-12 percent in the next 12M via vesting,” Mr. Lulla wrote. “Despite the holders whose tokens are now locked up voting, the proposal passed with overwhelming support (95% of votes approved).”

Summing up, Mr. Lulla noted that vesting could attempt to solve the issues related to “opportunistic farming.” It would allow serious stakers to invest in the long-term growth of promising projects like Curve and yearn.finance.

“Teams should leverage these programs as a valuable tool,” the researcher said.

OKEx FUD Benefits Rival UniSwap as UNI Jumps 10%

UniSwap’s governance token UNI was among the biggest gainers on Friday as the rest of the cryptocurrency market succumbed to a bearish fundamental.

The crypto index lost about $7 billion as trades panic-sold a portion of their holdings under the influence of OKEx. This Malta-based exchange landed itself in the middle of a criminal investigation.

In retrospect, OKEx suspended all its withdrawal options indefinity, saying that one of its private keys holders is “currently cooperating with a public security bureau.” The exchange later said that the investigation was a result of the staff’s personal issue.

Meanwhile, the Chinese news website Caixin reported that police had apprehended Mingxing Xu, aka “Star,” almost a weak go. He reportedly went out of the loop of the rest of the OKEx team ever since.

The exchange clarified that customers’ funds remain safe under their custody, adding that they “will resume digital assets/cryptocurrencies withdrawals immediately once the concerned private key holder can authorize the transaction.”

But the statement was not enough for daytraders. Many of them interpreted the OKEx news as another legal blow to centralized exchanges. They started limiting their long traders across other spot and derivatives platforms, causing the market to plunge.

UniSwap Moons

UNI initially underwent a sell-off like any other cryptocurrency. But the DeFi token sharply rebounded after traders realized that it represented an OKEx rival: UniSwap.

As a decentralized exchange, UniSwap discourages the practice of holding clients’ funds. It instead promotes the classic “Not-Your-Keys-Not-Your-Crypto” approach, thereby protecting itself from the likelihood of losing cryptocurrencies – or locking them in the event of missing private keys, just like in the case of OKEx.

UNI, UniSwap, UNIUSD, UNIUSDT, cryptocurrency
UniSwap logged a recovery rally on OKEx news. Source: UNIUSD on TradingView.com
UniSwap logged a recovery rally on OKEx news. Source: UNIUSD on TradingView.com

Jeff Dorman, the chief investment officer of New York-based Arca, acknowledged the same in his Friday tweet, calling the UNI dump-and-pump “a knee-jerk reaction.” Excerpts:

“Rational trading alert! After initially [getting dumped] on the OKEx news, $UNI is now rallying. An incorrect knee-jerk reaction, followed by prevailing common sense as market interprets (correctly) that a DEX should rally when a CEX has problems. [A] really good sign of a maturing market.”

Risks

The intraday upside, nevertheless, came amid pressing worries about UniSwap’s centralization. As previously covered, community members claimed that the exchange had handled over a larger quantity of UNI tokens to a very few players that could have them change the network rules without needing a majority vote.

“Dharma, with its massive voting power of 15 million votes [in one address alone], already presents a threat to Uniswap’s sovereignty without this proposal, which will so powerfully entrench them in Uniswap governance they might as well just outright own the DEX,” said David Felton, one of the UNI holders, in a blog post.

UNI plunged by up to 21 percent this week partially because of the centralization FUD.

Bitcoin Sell-Off Accelerates amid US Stock Downtrend; Crash Ahead?

Bitcoin (BTC) dropped lower on Thursday, with dimming stimulus hopes and a resurgence in the coronavirus cases in the US and Europe casting doubts over the global economic recovery.

The BTC/USD exchange rate established an intraday low at $11,263 as of around 0900 UTC, suggesting that it could correct further lower in the US trading session ahead.

The catalyst behind the pair’s dip was a stronger US dollar that picked up strength after US Treasury Secretary Stephen Mnuchin shattered hopes of finalizing the second stimulus relief bill before the presidential election on November 3.

Bitcoin-Stock Correlation

Bitcoin, which many consider as a hedge against devalued fiat currencies and higher inflation, rose 57.73 percent since the start of this year.

The cryptocurrency ascended especially as the global central banks took unprecedented measures to aid their economies through the coronavirus-led recession. That included ultralow lending rates, infinite bond-buying, and record-shattering stimulus aids from governments.

Traders anticipated that Bitcoin would repeat its bull run upon the finalization of second fiscal aid. But with the package stuck amid a political debate, traders started moving back to the safety of the US dollar. That reduced the appeal of Bitcoin and every other market that benefited from the stimulus.

Bitcoin, cryptocurrency, BTCUSD, XBTUSD
Bitcoin correlation with all three Wall Street indexes. Source: TradingView.com
Bitcoin correlation with all three Wall Street indexes. Source: TradingView.com

The US stock futures, for instance, fell in pre-trading session Thursday, just as Bitcoin. It hinted that the S&P 500, the Dow Jones, and the Nasdaq Composite are all going to open in negative areas at the New York opening bell. The reason is the same: an intraday appetite for the US dollar in absence of a stimulus.

But…

…there is more than just one factor at play, according to Jim McCormick, global head of desk strategy at Natwest Markets. The analyst told the WSJ that setbacks on the vaccine, as well as worsening coronavirus situation, have also contributed equally to worsen the risk-on mood.

“Markets are also reflecting investors’ reluctance to make any large bets until after the election when the risk of contested results has been eliminated,” he added.

The seesaw macro outlook has kept Bitcoin’s uptrend in control as well. Traders cannot hold leveraged buys over fears of being punched out on any bad news about the stimulus or coronavirus. At the same time, long-term investors are looking at every dip as an opportunity to accumulate more. They expect a stimulus deal down the road, with hopes up for a clear Joe Biden win in the election ahead.

Overall, short-term traders are defending the $11,700-resistance level, and the long-term ones are underpinning prices. It is keeping Bitcoin sideways at best.

A clear bias expects to arrive if BTC/USD breaks below $10,000 or closes above the $12,500.

UniSwap (UNI) Risks Falling Another 10% over Centralization Worries

UniSwap’s native cryptocurrency, UNI, is at risk of continuing its downtrend by another 10 percent as the decentralized exchange undergoes its first governance vote.

Members of the UniSwap community claimed that whales with access to large quantities of UNI tokens are unanimously changing the network rules. The accusations followed the launch of the first proposal on UniSwap, dubbed as ‘Reduce UNI Governance Proposal & Quorum Thresholds,’ by Dharma.

DeFi, UniSwap, UNIUSD, UNIBTC, UNI
UNI whales, as highlighted by DeFi expert Chris Blec. Source: UniSwap
UNI whales, as highlighted by DeFi expert Chris Blec. Source: UniSwap

The DeFi trading and lending platform suggested reducing the current proposal submission threshold to 3 million UNI from 10 million UNI. The suggestion entered a controversy after one of the UniSwap community members, David Felton, accused Dharma of enjoying too much control over the project’s governance model.

“Dharma, with its massive voting power of 15 million votes [in one address alone], already presents a threat to Uniswap’s sovereignty without this proposal, which will so powerfully entrench them in Uniswap governance they might as well just outright own the DEX,” – Mr. Felton wrote in a blogpost this Tuesday.

Demand Deficit

Other observers forwarded the centralization narrative by mentioning Gauntlet, a blockchain simulation platform with access to another 15 million UNI tokens. Some of them launched a campaign to vote against the Dharma proposal altogether.

“43m votes delegated,” tweeted Chris Blec, founder of DeFi Watch. “30m to Dharma & Gauntlet. D&G proposes lowering the quorum to 30m and vote YES. 13m eligible votes remaining. (You can’t vote if you didn’t delegate before the vote began.) And guess who controls half of the remaining votes?”

The findings lifted the appeal with which UniSwap attracted a strong user base: decentralization. With big players controlling most UNI governance tokens, any coalition between the two whales could negate the votes of many that are voting against them.

And the impact of such centralization may lead to lower demand for UNI tokens altogether.

UNI Breaks Key Support Range

The fears of centralization are also already visible across the UNI pairs.

The benchmark UNI/USD plunged by close to 20 percent right soon after UniSwap landed into the voting controversy. As it did, the pair broke below a crucial support level below $3.17 and now was targeting $2.89 for a potential rebound.

DeFi, UniSwap, UNIUSD, UNIBTC, UNI
UniSwap is looking weaker near the $2.89 support. Source: UNIUSD on TradingView.com
UniSwap is looking weaker near the $2.89 support. Source: UNIUSD on TradingView.com

The fundamentals indicated a further downside correction in the UniSwap markets. It increased the UNI/USD’s potential to test $2.5, a support level from October 7, that stands about 10 percent below the current price levels.

Bitcoin Fractals That Sent Price 30-50% Higher Flash Again

Just a day before Bitcoin breached $11,500, a psychological resistance level, the cryptocurrency painted one of the strongest bullish signals of its eleven-year history as a financial asset.

On October 11, BTC/USD formed a leading ‘Golden Cross‘ on its daily chart. The pattern emerges when the pair’s short-term moving average jumps above its long-term moving average. Typically, analysts measure the Cross based on a crossover between a 50- and 200-period moving average. But it remains a lagging indicator.

Why 20-50?

Replacing the 50-200 crossover with the 20-50 one gives a more accurate, and real-time depiction of the market’s bias – at least in the case of Bitcoin.

Bitcoin, cryptocurrency, BTCUSD, XBTUSD, golden cross

Bitcoin price has rallied by 40-50 percent in previous Golden Cross fractals. Source: BTCUSD on TradingView.com

The last three Golden Cross formations reflect that accurately. The first 20-50DMA crossover this year, referred to GC1 in the chart above, appeared on January 5. BTC/USD rose by 42 percent during the time the 20-DMA floated above the 50-DMA.

Similarly, GC2 shows a 46 percent price rally after BTC/USD confirmed another 20-50DMA Golden Cross on April 20. The sentiment was the same in the last crossover that took place on July 25 – and that sent BTC/USD up by circa 30 percent.

Conversely, the formation of Death Cross – an inverse of Golden Cross – sent the pair lower every time. It shows that traders watch the 20- and 50-DMA to decide their market bias.

Bitcoin Fundamentals Back Technicals

The latest Golden Cross fractal appeared at a time when major firms announced their involvement in the crypto market.

Just this Tuesday, Stone Ridge – a $10 billion asset management giant, revealed that it is sitting atop a $115 million Bitcoin investment. The firm went as far as building its own customized solutions for custody so they could also lure their customers into investing in Bitcoin.

The news came days after Square, a multinational payments firm headed by Twitter-famed Jack Dorsey, showed about $50 million worth of Bitcoin in its balance sheets. The company even left a whitepaper behind for firms. It showed how they can invest in the decade’s best-performing financial asset.

Weeks and months before that, public-traded firm MicroStrategy and billionaire fund manager Paul Tudor Jones also poured considerable amounts into the Bitcoin sector.

Good fundamentals make better technicals. The said high-profile investments in Bitcoin validated the asset among people who were reluctant about investing in it. Some even noted that more companies may end up reallocating their cash reserves to Bitcoin as the US dollar loses value.

It is safe to assume that those expectations may end up validating the 20-50DMA Golden Cross, as well.

YFI in Deep Technical Trouble Below 12K, Analyst Warns after 65% Drop

No traders may want to purchase Yearn Finance (YFI) after it plunges below $12,000, according to an independent analyst.

The pseudonymous entity said in a tweet on Wednesday that the Yearn Finance’s native token “is dead” if it fails to hold above the said support level. In a separate tweet, he published an outlook that showed YFI attempting to stay afloat inside a price floor zone (as shown in the chart below).

YFI, yearn finance, cryptocurrency, YFIUSD, YFIUSDT, YFIBTC
Yearn Finance is attempting to rebound from the blued range. Source: YFIUSD on TradingView.com
Yearn Finance is attempting to rebound from the blued range. Source: YFIUSD on TradingView.com

The image above depicts YFI in a medium-term downtrend. It started after the token established its record high near $44,000 – and lately showed signs of bottoming out after the price hit $12,220.

YFI Fundamentals

Meanwhile, many fundamental and technical factors contributed to YFI’s sharp slide. For starters, the token had rallied too rapidly amid the booming craze for decentralized finance projects. It demanded a natural correction on profit-taking sentiment alone.

Nevertheless, YFI/USD kept forming lower lows as liquidity to drive the prices up dried up in the upper crypto brass. For instance, a period of pair’s downside correction strongly coincided with a plunge in the Bitcoin and Ethereum market.

Those top cryptocurrencies, in turn, slid because of a delay in the second coronavirus stimulus package in the US. The aid would have brought at least $1.6 trillion into the economy, thereby hurting the US dollar and raising the demand for riskier assets.

What further fueled the YFI’s bearish momentum is Andre Cronje, the founder of Yearn Finance. About three weeks ago, he launched a series of new smart contracts for his upcoming gaming project Eminence Finance.

The association of Mr. Cronje with a new game startup excited YFI holders. They expected to make healthy returns from the project. So they decided to deploy capital into the Eminence contracts, only to find later that all those contracts had a bug.

That small error wiped about $15 million worth of DAI stablecoin. Later, to offset those losses, Eminence investors sold their YFI holdings en masse, bringing the price further lower below the $20K-support level.

Now those who suffered significant losses are reportedly planning to sue Mr. Cronje for deploying faulty smart contracts. The claims remain unfound.

Technicals

The low fundamental outlook for the Yearn Finance token is leaving technical analysts bearish as well.

A pseudonymous trader noted that YFI has every bit of possibility to hit $10,000 during the fourth quarter, noting that it may happen by next week.

“The $YFI Chart has been beautiful,” he said. “Unfortunately, the bear trend seems like it will sustain for another week or so, a historically weak bounce than previous bottoms. I would not be surprised to see sub 10k in Q4.”

YFI/USD was trading near $14,650 at the time of this writing, down 10.5 percent in the last 24 hours.

DeFi Token LEND Turns Into AAVE With a 25% Price Surge; What’s Next?

The transformation of Aave’s native asset LEND into a new symbol, titled “AAVE,” has begun with a 25 percent price surge.

In retrospect, the team behind Aave announced two weeks ago that it would transfer its ownership of the lending protocol to a “genesis governance” built following a community vote. The ayes came in favor of the protocol upgrade last week.

LEND was the governance token of the previous Aave protocol. The team proposed to convert the old cryptocurrency to the one that would be more compatible with the genesis governance built. Hence, AAVE came into existence.

The so-called token swap started late last week at the rate of 1 AAVE per 100 LEND. Multiple exchanges integrated AAVE into their platforms, allowing traders to speculate on its value as they were doing with LEND.

aave lend

AAVE/USD rose from $43.77 to $54.99 in just six days of trading. Source: TradingView.com

AAVE Rally Begins

The first days of LEND trading on Gemini exchange met with explosive buyouts. The US exchange reported a circa 23 percent price increase in the early three days. After a natural downside correction later, the AAVE/USD exchange rate resumed its uptrend and formed a local top about 25 percent higher – at near $54.99.

The gains came as traders assessed the Aave’s switch to a more decentralized protocol. That allowed the project to stand out among other lending and borrowing startups in the decentralized finance space.

Profits for the new AAVE also poured in alongside a market-wide rebound. A rally in the Bitcoin market prompted alternative cryptos to follow suit – as has happened throughout the history of altcoins.

Simultaneously, traders also went long on LEND trades after the project announced that it had received a high-profile monetary backing.

Mainstream Expansion

Blockchain Capital, Standard Crypto, Blockchain.com Ventures invested $25 million in Aave, the latter announced on its social media on Monday.

CEO Stani Kulechov said that their firm “raised funds from strategic investors to bring DeFi closer to institutional use and to expand the team size to serve the growth in Asian markets.”

He added that Blockchain Capital, Standard Crypto, Blockchain.com Ventures would participate in the Aave’s staking and governance. That would require all the three to hold LEND tokens.

Alex Saunders, the CEO/co-founder of Nugget News AU, stated that Aave’s backers have plans to buy LEND in anticipation to secure about 100 times returns at the later stage.

“The future is bright,” he added.

Early-stage startup investor Eric Dadoun called the LEND token “an undervalued gem,” leaving more hints of an extended bull run behind.

The token was trading at near $52 at the time of this report.

DeFi Token LEND Turns Into AAVE With a 25% Price Surge; What’s Next?

The transformation of Aave’s native asset LEND into a new symbol, titled “AAVE,” has begun with a 25 percent price surge.

In retrospect, the team behind Aave announced two weeks ago that it would transfer its ownership of the lending protocol to a “genesis governance” built following a community vote. The ayes came in favor of the protocol upgrade last week.

LEND was the governance token of the previous Aave protocol. The team proposed to convert the old cryptocurrency to the one that would be more compatible with the genesis governance built. Hence, AAVE came into existence.

The so-called token swap started late last week at the rate of 1 AAVE per 100 LEND. Multiple exchanges integrated AAVE into their platforms, allowing traders to speculate on its value as they were doing with LEND.

aave lend

AAVE/USD rose from $43.77 to $54.99 in just six days of trading. Source: TradingView.com

AAVE Rally Begins

The first days of LEND trading on Gemini exchange met with explosive buyouts. The US exchange reported a circa 23 percent price increase in the early three days. After a natural downside correction later, the AAVE/USD exchange rate resumed its uptrend and formed a local top about 25 percent higher – at near $54.99.

The gains came as traders assessed the Aave’s switch to a more decentralized protocol. That allowed the project to stand out among other lending and borrowing startups in the decentralized finance space.

Profits for the new AAVE also poured in alongside a market-wide rebound. A rally in the Bitcoin market prompted alternative cryptos to follow suit – as has happened throughout the history of altcoins.

Simultaneously, traders also went long on LEND trades after the project announced that it had received a high-profile monetary backing.

Mainstream Expansion

Blockchain Capital, Standard Crypto, Blockchain.com Ventures invested $25 million in Aave, the latter announced on its social media on Monday.

CEO Stani Kulechov said that their firm “raised funds from strategic investors to bring DeFi closer to institutional use and to expand the team size to serve the growth in Asian markets.”

He added that Blockchain Capital, Standard Crypto, Blockchain.com Ventures would participate in the Aave’s staking and governance. That would require all the three to hold LEND tokens.

Alex Saunders, the CEO/co-founder of Nugget News AU, stated that Aave’s backers have plans to buy LEND in anticipation to secure about 100 times returns at the later stage.

“The future is bright,” he added.

Early-stage startup investor Eric Dadoun called the LEND token “an undervalued gem,” leaving more hints of an extended bull run behind.

The token was trading at near $52 at the time of this report.

A “Cypher Pattern” Sets UNI For 100% Rally, Says Analyst

Associating with the term “DeFi” worked in favor of many blockchain assets this year. UNI was one of them.

The governance token, which landed in the hands of people who contributed to the progress and running of UniSwap, a decentralized crypto exchange, was a hit right after its launch. It topped charts after rising more than 5550 percent within hours of trading, surging from $0.15 to $8.62.

Of course, UNI remained an airdrop token – helicopter money that prompted beneficiaries to dump it the moment they received it. That caused UNI/USD to plunge harder from its year-to-date high. As of October 7, almost three weeks after its launch, the pair was trading for $2.47, down 71.25 percent.

UniSwap, UNI, cryptocurrency, DeFi, decentralized finance
UNI/USD price trends since launch. Source: TradingView.com
UNI/USD price trends since launch. Source: TradingView.com

The slipover occurred amid a market-wide DeFi meltdown. Almost every asset, that represented yield farming projects, decentralized exchanges, and distributed lending/borrowing, fell hard. It showed that their upside bias was exhausting, leading to serious profit-taking among traders.

But despite the DeFi crash, UNI is still promising to recoup its entire losses. So says a TradingView-based analyst that has spotted the UniSwap token inside an indicator known as…

…The Cypher Pattern

According to ForexOP.com, the Cypher in forex trading represents a five-point harmonic chart pattern: XABCD.

“In any Cypher, points X, C and D are the critical points,” the portal noted. “For a bullish Cypher, X should be the pattern low and C the pattern high. A bearish Cypher makes its high at X, and its low at C.”

Based on the definition, UNI is currently printing a bearish Cypher Pattern. It also gets confirmed by retracements between AC (38%-62%), BC (113%-141%), and AD (78%) against the XA. For instance, the chart below illustrates the segments:

UniSwap, UNI, cryptocurrency, DeFi, decentralized finance, defi
Example of Cypher Patterns. Source: ForexOp.com
Example of Cypher Patterns. Source: ForexOp.com

And now, placing the Bearish Cypher pattern on the current UNI/USD chart makes it look like the following.

UniSwap, UNI, cryptocurrency, DeFi, decentralized finance, defi
UNI/USD and its Cypher Pattern outlook. Source: TradingView.com
UNI/USD and its Cypher Pattern outlook. Source: TradingView.com

“So far all fib levels line up accurately,” the analyst behind the chart above said. “If this is the case and price breaks above $5 resistance, we’ll be seeing $7 soon.”

UNI Fundamentals Agree

UNI is a new token but what it represents is a three-year-old credible DeFi project, UniSwap. The exchange now facilitates hundreds of millions of dollars in volume every day. Its output is higher than the ones posted by the top centralized exchanges Binance and Coinbase.

UniSwap has paid out more than $60 million to its 400,000 liquidity provider. It is the same reason why, despite UNI’s latest plunge, the total-value-locked (TVL) inside its pool barely moved lower. In contrast, other pools lost almost half of their reserves.

UniSwap, UNI, cryptocurrency, DeFi, decentralized finance, defi
The TVL of the UniSwap pool. Source: DeFi Pulse
The TVL of the UniSwap pool. Source: DeFi Pulse

With UNI now becoming an economic incentive, the token expects to grow higher in value.

Calls for Ethereum Breakout Grow in Run Up to “Phase 0” Launch

Technical chartists extended their Ethereum price target beyond $400 as the blockchain inched towards a major protocol upgrade.

The ETH/USD exchange rate surged to its multiweek high near $378 last week amid a broader crypto market rebound. The new capital came following hopes of the second US stimulus package, a deal that remains stuck on Capitol Hill for months – and whose execution raises the bullish prospects of the cryptocurrency industry, as seen through the first stimulus aid between March and July earlier this year.

Nonetheless, Ethereum grew substantially higher than the rest of the top crypto brass, including Bitcoin. ETH/USD rallied exponentially because of Ethereum’s increasing utility in the emerging decentralized finance and stablecoin space.

Ethereum 2.0

The project’s plans to upgrade from proof-of-work to proof-of-stake protocol kept its bullish bias intact for the long-term.

The developers of “Ethereum 2.0” launched a new bug bounty program on Friday last week, with its project lead Danny Ryan tweeting:

In a separate post, the team announced:

“The Eth2 Bounty Program provides bounties for Eth2 (a major upgrade to Ethereum’s core consensus) bugs. We call on our community and all bug bounty hunters to help identify bugs in the protocols and clients.”

Ethereum 2.0’s switch from development to testing phase signaled that it is close to getting launched. As earlier announced, the upgrade could go live anywhere between November 2020 and January 2021, depending on the pace of its software development life cycle.

Meanwhile, the announcement of its bug bounty aptly coincided with an optimistic stimulus update. That allowed analysts to increase their bullish bets on Ethereum (the cryptocurrency).

Logan Han, an independent digital asset manager, envisioned ETH/USD inside a consolidation phase ranging between $310 and $450. His chart noted that breaking above that area could push the pair up towards $1,200 in the long-run.

Ethereum, ETHUSD, ETHBTC, cryptocurrency
Ethereum price outlook, as presented by Logan Han. Source: TradingView.com
Ethereum price outlook, as presented by Logan Han. Source: TradingView.com

Another prominent analyst – albeit a pseudonymous one – took a short-term approach to price prediction. He noted that Ethereum is trending in what appears in the chart below a “Bull Flag.” They are – typically – continuation indicators – which means a breakout of them push the price in the direction of the previous trend.

In Ethereum’s case, that direction is to the upward – above $400.

What’s Next?

The launch countdown of Phase 0 begins around the same time the US presidential election concludes. A clear majority in the US Congress and Senate would ensure that a stimulus bill is passed. As a result, the US dollar would decline and raise bids for scarce assets like Bitcoin and Ethereum.

Ethereum should particularly benefit due to the 2.0 launch. The prospect of staking ETH tokens in a pool and earn yields would remove a large portion of its supply out of the market. Meanwhile, its growing demands across the DeFi and stablecoin space would make it more valuable.

Major XRP Price Rebound Expected as Ripple Plans Relocation

XRP is giving signs of a significant price rebound as its backer, Ripple Labs, said that it plans to move out of the US.

The San Francisco-based blockchain company iterated via its co-founder Chris Larsen that it may shift to a crypto-friendly country – the UK, Switzerland, Japan, or Singapore – because of America’s enforcement-focused regulation on crypto and blockchain firms.

“The message is blockchain and digital currencies are not welcome in the US,” said Mr. Larsen. “You want to be in this business, you probably should be going somewhere else. To be honest with you, we’re even looking at relocating our headquarters to a much more friendly jurisdiction.”

Class-Action

The statement also came after a US court dismissed two out of three allegations against Ripple last week. The charges were a part of a class-action lawsuit, filed by Ripple’s investor Vladi Zakinov in November 2018. He alleged that the firm and its CEO Brad Garlinghouse sold them illegal securities in the form of XRP tokens.

Mr. Garlinghouse blamed the US Securities and Exchange Commission for its inability to clarify any concrete laws for blockchain firms. He added that Ripple is not trying to avoid rules by deciding to move abroad, but it merely wants to operate in an environment where regulations are clear.

XRP Outlook

XRP’s first reaction to the news was positive. The fourth-largest cryptocurrency by market cap rose $0.0032, or 1.35 percent, to $0.249 on Wednesday. However, it failed to turn the upside into a full-fledged bullish move, correcting lower to $0.246 as of the time of this writing on Thursday.

XRP, Ripple Labs, XRPUSD, XRPUSDT
XRPUSD is looking choppy amid the macro uncertainty. Source: TradingView.com
XRPUSD is looking choppy amid the macro uncertainty. Source: TradingView.com

Vince Prince, an independent market analyst, stated in a note that he expects XRP to log a major rebound in the coming sessions. The point of bounce-back, he added, could be around $0.233-0.235.

“[XRP] has the preliminary support within the blue level marked in my chart [as shown below] between 0.2335-0.235 which is an important support to hold for XRPUSD before moving upward,” said Mr. Prince.

XRP, Ripple Labs, XRPUSD, XRPUSDT
XRP price setup, as explained by Vince Prince. Source: TradingView.com
XRP price setup, as explained by Vince Prince. Source: TradingView.com

The analysis came as a part of a partial, inverse Head & Shoulder pattern. The $0.233-0.235 served as the bottom of the right shoulder. If sustained, it prompted the XRP price to rebound towards the neckline, which sits near $0.2604. Mr. Vince also anticipated a breakout move to the upside, adding:

“It will be interesting to see XRPUSD further development in the structure. And, in comparison to the rest market, this is a structure [that] has good potential.”

FTX CEO is Behind YFI Price’s Crash Towards $12K, Claims Weibo Profile

YFI crashed towards $12,000 on Thursday and unconfirmed evidence shows that Sam Bankman-Fried was behind the plunge.

A Weibo-based profile, operating under the pseudonym of “Crypto Apprentice,” published a string of screenshots that connected the FTX crypto exchange CEO with the YFI’s massive price meltdown. Per the images, Mr. Bankman-Fried deposited FTX’s native token FTT and Serum decentralized exchange’s governance token SRM into Cream’s liquidity pool as collateral.

In retrospect, Cream is an Ethereum-based lending platform that allows users to borrow or lend from a pool of assets. Mr. Bankman-Fried allegedly used their service to borrow three decentralized finance tokens: UniSwap’s UNI, Curve’s CRV, and Yearn Finance’s YFI.

YFI, FTX, Sam Bankman-Fried, UNI, YFIUSD

Cream profile allegedly linked to the FTX CEO borrowing YFI tokens. Source: CryptoApprentice

“If you want to look for yourself, the [Cream] wallet might be Alameda’s [a cryptocurrency trading firm also founded by Mr. Bankman-Fried] because it has $72M in FTT,” noted Julien Thevenard, an investor with Fabric Ventures in London.

“They have borrowed 2.7M UNI + 165 YFI (+ no CRV) yesterday and sent them to Binance/ They have repaid 1.3M UNI since. Interestingly they hold 14M Sushi there,” he added.

One of the screenshots then showed the CEO in conversation with an unidentified individual. In there, the anonymous person can be seen asking Mr. Bankman-Fried that whether or not he would short “UNI and YFI,” to which Mr. Bankman-Fried responds: “perhaps” followed by a smiley.

YFI, FTX, Sam Bankman-Fried, UNI, YFIUSD

The image shows the FTX CEO claiming that he may short his UNI and YFI holdings. Source: CryptoApprentice

Mr. Bankman-Fried has not released a clarification or response to the said allegations so far.

YFI Capitulation Continues

None of the screenshots showed the exact date on which Mr. Bankman-Fried discussed his plans to short YFI. Nevertheless, with the Yearn Finance token dropping in eight out of ten daily sessions, the community smells a rat.

It is also because Mr. Bankman-Fried allegedly commits that he borrowed UNI and YFI tokens earlier, without mentioning the date, however. Meanwhile, YFI has now crashed by almost by 64.34 percent from its September 27 high of $34,272.

YFI, yearn finance, cryptocurrency, YFIUSD, YFIUSDT, YFIBTC

YFI undergoes massive sell-off. Source: TradingView.com

Another factor that has contributed largely to the YFI breakdown is Andre Cronje, the founder of Yearn Finance. Not too long ago, he founded ‘Eminence’ (EMN), a project that lost about $15 million to hackers even before the launch.

Market analyst Alex Krüger said that EMN’s failure rippled negativity across Mr. Cronje’s successful Yearn Finance project. He wrote:

“The main reason IMO was Yearn’s blatant negligence around the EMN launch, and how poorly the aftermath was handled. Said so when it happened, not in hindsight later. Many exited/reduced YFI positions because of it.”

The total value locked inside the Yearn Finance pool now stands near $600 million, a 40 percent drop from its all-time high.

A Big Bitcoin Move Ahead as Volatility Hits 3-Month Low: Fund Manager

Bitcoin strategists are waiting for a bias-defining price move as the cryptocurrency’s historical volatility falls to its lowest in three months.

Jan Uytenhout, the co-founder of Capriole Investments in Denmark, iterated the outlook in a tweet issued earlier this Wednesday. The fund manager cited old references to show a correlation between the Bitcoin price and its historical volatility index.

He noted that the cryptocurrency undergoes sharp price moves regardless of its direction whenever its volatility falls below 20, based on readings from a technical indicator. For instance, in late July 2020, the BTC/USD exchange rate climbed 11.37 percent, just as its volatility dipped below 20. The chart below illustrates it.

Bitcoin chart showing its price-volatility correlation
Bitcoin chart showing its price-volatility correlation. Source: TradingView.com
Bitcoin chart showing its price-volatility correlation. Source: TradingView.com

In another instance, the pair dived lower by 12 percent on a lower volatility alarm.

Bitcoin Bias-Conflict

In retrospect, Historical Volatility works least when it comes to predicting future price trends. At best, it merely shows how far an asset has moved away from its moving average price. That shows how even a healthy and trending market can undergo dramatic changes in prices over time amid low volatility periods.

But for traders, a period of low volatility reflects an asset’s inability to return tremendous profits in a short time. That prompts them to seek yields elsewhere or wait for more significant traders to buy the asset en masse, thereby pushing the prices higher.

That partially explains why the Bitcoin market post giant upside/downside candles when its volatility slips into the yellow region, as shown in the chart above.

As the cryptocurrency’s bias conflict remains, traders are now looking at other major market catalysts to guess its next price direction, staring with the ongoing macroeconomic fundamentals.

Stimulus

The Bitcoin market has realized that the ongoing US stimulus talks are playing a significant role in driving its short-term sentiment. In retrospect, the Democrats and the Republicans have failed to finalize the aid that intends to help American households and businesses impacted by the coronavirus pandemic.

The former wants a $2.3 trillion package so it could extend the help to some majorly-battered US states, as well. Meanwhile, the latter wants to limit the deal to $1.6 trillion. After two months of negotiations, the conversation stands stuck also as the US presidential election approaches on November 3.

The New York Times has called it a “dangerous delay” especially when the US job growth has stalled.

Meanwhile, Bitcoin comes into the picture as a defense against the impact of expensive stimulus packages on the US dollar. Investors expect the greenback to turn lower as it did after the first coronavirus relief of $2 trillion. They, therefore, transfer risks to other assets, which include Bitcoin.

The cryptocurrency rose by more than 200 percent from its mid-March low, especially after the US Congress passed the first relief fund.

But now, with the aid drying up, investors are going back into the US dollar market, dumping bullish assets like Bitcoin at their local tops. In Donald Trump’s own words, there won’t be any stimulus deal until the election. So, the cryptocurrency expects to suffer at least until November 3.

Bitcoin is awaiting a breakout from its symmetrical triangle pattern
Bitcoin is awaiting a breakout from its symmetrical triangle pattern. Source: TradingView.com
Bitcoin is awaiting a breakout from its symmetrical triangle pattern. Source: TradingView.com

Technically, a Symmetrical Triangle formation is also hinting about a big breakdown move in the Bitcoin market. As BTC/USD closes in towards the pattern’s apex, it risks falling by as much as the height of the Triangle. That puts the pair’s downside target somewhere near $9,000.