The total market value of cryptocurrencies has recovered from a September 6 low of around $ 314 billion, but it is difficult to keep above $ 350 billion dollars, indicating that higher levels continue to attract sellers.
Bitcoin (BTC) dominance has fallen from over 68% in mid-May to around 56% in the first half of this month as DeFi tokens entered a strong bullish trend.
In recent days, however, DeFi assets have experienced a sharp correction and increased volatility. This could lead traders back to bitcoin. It is also possible that Bitcoin’s inability to stay above the $ 11,000 level could negatively affect confidence in altcoin and DeFi traders.
While Bitcoin is struggling to find momentum, on the positive side, the volume of Bitcoin futures contracts on Bakkt is increasing, and the whaling ratio is approaching its annual low. This indicates an accumulation of whales and institutional traders.
At this time, most cryptocurrencies do not follow the general trend, as price action is largely currency-specific. This opened up opportunities for both sales and the long side. Thus, the current list discusses two short ideas for bearish traders in the cryptocurrency markets.
Bitcoin / US dollars
Bitcoin’s comfortable rally faces stiff resistance near the 50% Fibonacci retracement level of $ 11,147.60. This indicates that the bears used today’s recovery rally to enter short positions.
If the Bears manage to push the price below the uptrend line and support of 10 625 dollars, it would indicate weakness. If the BTC / USD stays below $ 10,625, it increases the likelihood of reconsideration by $ 9,835.
However, if the pair bounces sharply from the support to $ 10,625, this will be the first sign that the correction is over. Momentum is likely to pick up after the rally breaks down the downward line.
If the price closes (in UTC) above the downward line, the probability increases to $ 12,460. Despite resistance at the $ 12,000 level, it looks like it will be overcome.
The pair is currently trying to bounce off the uptrend line, indicating that the bulls have bought the bottom of this support. Buyers will now make a new attempt to push the price above the $ 11,147.60 resistance.
If the bounce disappears and the bears drop the pair below the line, it could drop to $ 10,625. This is an important support for the bulls, as they are likely to activate sales if this level is broken.
If the pair bounces off $ 10,625, it could move in that range for several days. A flat moving average on the 4-hour chart indicates a balance between supply and demand.
NEO / USD
NEO is currently facing strong resistance at $ 25.23, which indicates that the bears are strongly defending this resistance. However, given the trend, traders are more likely to view the downturn as a buying opportunity.
The closest downside support is $ 23 and below the 10-day simple moving average ($ 22.26). If the NEO / USD pair bounces off any of its supporters, it indicates that the bulls are not waiting for a deeper fall to buy, which is a positive sign.
If the bulls manage to push the price above the resistance zone of $ 25.23-25.78923, the trend is likely to continue. The next growth target is $ 29.
A break below the 10-day SMA would be the first sign of weak speed, while a drop below $ 20.9633 would indicate a possible change of direction.
The 4-hour chart shows that the bulls pushed the price above the $ 25.23 resistance level twice, but failed to keep the higher levels. This indicates that the bears are trying to stop the rally on this resistance.
On the other hand, the bear prevented the price from staying below $ 23, indicating that buyers are accumulating with every little dip.
The pair can hold between $ 23 and $ 25.50 for a few more days. The moving averages are evened out, which indicates a balance between supply and demand.
XMR / US Dollar
The Monero (XMR) recovery from the September 5 low of $ 74.1012 was strong, and the bulls pushed the price back above the moving average, increasing the likelihood that the correction will end.