Bearish BTC, But Bullish DeFi (SNX, COMP)
Hello and welcome, everyone. It's Martin here with CryptoGains. One analyst suggests that bitcoin being unable to make new highs in the past 80 days may actually signal a bear market or a period of extended consolidation or sideways movement of prices or even decreases. Here's what he says: "Never in any bull market in bitcoin's entire history have we corrected for this long, then made new highs in the same year".
Probably then, we may be unable to recover our gains from the start of the year and experience a year of sideways movement or even further declines. This is further emphasised by this bearish cross or death cross where the 50-Day Moving Average crossed below the 200-Day Moving Average, considered a very strong bearish signal in technical analysis.
However, on the positive side, cardano keeps expanding and partners with the crypto-lending player Nexo, allowing members to trade some of its tokens and expanding the breadth, scope, reach and accessibility of the network. However, if bitcoin is bearish, then this is not the case with DeFi tokens, as actually, they're rebounding as the crypto market adds $70 billion, and the total volume locked is still very healthy across the top protocols. And some of the best performers that you can trade on the StormGain platform include Synthetix, Aave, which I discussed yesterday, and Compound.Finance.
Now we're going to move to the charts and see how we can create all these assets. Beginning with bitcoin versus tether, bitcoin broke above the resistance at $34,750 and now presents good buying opportunities, with targets at $35,600 and $35,930. Conversely, if we break below $34,750, we could see more declines, taking us down to $34,200 and $33,700.
Now let's move to ethereum. Ethereum recovered very strongly over the last few hours. And it's currently trading above the critical level of $2335, which gives us good buying opportunities, with targets at $2385 and $2450, which is not even on that hourly chart as it was levels that we haven't seen in a couple of days. Conversely, if we break below $2235, it's likely that bearish sentiment will prevail, taking us down with good targets on the short side at $2260 and $2200.
And now, let's move to cardano. Cardano is tinkering with a very important psychological level around $1.45. And, ideally, I want to straight above $1.45 to feel confident to initiate long positions, with targets at $1. 49 and $1.53. Conversely, below $1.45, it's more than likely that some of these gains from the last couple of hours may be retraced, and we could be retesting support at $1.415 and $1.386.
And now, let's move to some of the DeFi protocols, beginning with synthetix. On the four-hour chart of synthetix versus tether, we can see a very, very robust rally from the last couple of days, beginning at levels approximately $5.70, rallying by multiple hundreds of percents to reach $12.10. Currently trading just below $12. Ideally, if we zoom out a little bit, we can see the $12.13, $12.15 is a long-term resistance area. So ideally, I want us to trade above that level to initiate long positions, with targets at $13 and $14. Conversely, below $12.13, I could see potentially retracing some of these gains and stabilising at the levels of $11 or $10.40.
And finally, let's take a look at compound. Compound is another exceptional performer. You can see on the one-hour chart it rallied strongly from $420 to about $500. Currently, I'm using $510 as my pivot point to initiate long positions, with targets at $560 and $600, which are far more longer-term levels that we haven't seen from the end of May when we hit the big correction cryptocurrencies. However, below $510, we could see declines, with targets on the short side at $487 and $460.
As always, keep learning with the video education section in the CryptoGains Market Insights subsection, and remember to join the Crypto Signals Made Easy channel for lots of insightful articles and trading ideas. Thanks for joining me today. Trade wisely, and I'll see you soon.