Brad Garlinghouse, CEO of Ripple Labs, believes the US Federal Reserve’s recent decision to keep inflation above its 2% target could result in further depreciation in the dollar. According to Garlinghouse, this decision is likely to “further diversify the assets that cryptocurrencies will definitely benefit from.”
The various incentives and financial measures announced worldwide to combat the coronavirus pandemic that caused the economic slowdown are bullish on Bitcoin (BTC). However, Bitcoin’s major bull market cycles show that each successive cycle was longer than the previous one.
If the date repeats, Bitcoin could hold together for another 3 to 12 months before taking a decisive step.
During this time that Bitcoin remains constrained by scope, many other digital currencies are likely to come into circulation.
Over the past few months the market move has been in DeFi tokens, which were in their own bull run.
As Bitcoin standardizes, let’s take a look at some of the alternative currencies that could offer an opportunity in the short term.
Bitcoin / USD
The Average Directional Index (ADX), a component of the Directional Movement Index, has fallen below 24 and the 20-day exponential moving average ($ 11,534) has fallen, indicating that the trend in Bitcoin has weakened significantly.
Currently, the price is largely between $ 12,000 and $ 11,000, which has brought the positive trend index (+ DI) and negative trend indicator (-DI) closer together.
After the bears failed to lower the price below the $ 11,000 support level on August 25-27, the bulls will now attempt to push the price above the resistance zone from $ 12,000 to $ 12,460. If they are successful, the next phase of recovery is likely to begin.
However, if the price falls outside of its upper resistance zone, the BTC / USD pair will likely spend some time within the range.
-DI and + DI are closer together and ADX is less than 18, which indicates a balance between supply and demand.
The slight upside, however, is that buyers are aggressively defending the $ 11,000-11,200 support zone. They will now try to get the pair up to the $ 12,000 level.
If the pair does not gain momentum, the possibility of a short-term breakout seems weak and therefore the move in terms of range is likely to continue for a few more days.
Atom / dollar
The bears vigorously defended the $ 8.50 level in Cosmos (ATOM), which attracted profit-taking from short-term traders who dragged the price to the breakout level of $ 7.249.
Should the ATOM / USD pair bounce off the breakout, it should act as solid ground for further dips.
The ADX remains strong above 35 and + DI above -DI, indicating that bulls have the upper hand. With a break above $ 8, the recent highs of $ 8,877 will likely be retested.
If the bulls manage to push the price above this level, the uptrend can continue with the next target at $ 10.471.
Contrary to this assumption, the bears will try again to keep the price below $ 7,249 if the pair falls from $ 8. If successful, it could drop to the 20-day moving average ($ 6.69).
Although the bears pulled the pair below $ 7,249, they were unable to keep the price below, indicating that the bulls are buying at lower levels.
If the bulls manage to push the price above the $ 7,844 resistance, a retest of $ 8,877 is possible. Above this level, the upward trend is likely to continue.
This uptrend will be negated if the pair falls and stays below $ 7,249. Such a move would indicate that the correction could deepen to $ 6.604 and then to $ 5.50.
Lending / USD
The ADX is trading above 55 and + DI above -DI, indicating that the Aave (LEND) is on a strong uptrend and the bulls are in control.
LEND / USD is currently down after hitting a high of $ 0.89985 on August 26th. On the positive side, however, the bulls did not allow the price to drop below $ 0.70426, which is the 50% Fibonacci retracement level from the final stage of the rally.
The date indicates that the couple hasn’t spent much time sticking together since July (indicated by the ellipses in the table). Hence, the bulls are likely to try again to resume the uptrend by pushing the price above $ 0.89985.