The Bitcoin market is at a bearish crossroads as support fails and the price struggles to preserve the mid-$90,000 zone. A "bearish engulfing" candlestick formation on the weekly chart has traders nervous about the short-term outlook for BTC/USD. Some forecasters see a chance of a major dip, with targets including a return to near old all-time highs of $74,000.
The market is reeling from last week's hawkish Fed meeting, and the upcoming US jobs data may lead to further volatility. However, those looking to gain long-term BTC exposure may get their first buy-in opportunity in two months, according to data from a dedicated indicator.
Crypto market sentiment is rapidly souring, but "greed" still reigns, according to the Crypto Fear & Greed Index. The index remains in "greed" territory, which has historically been a sign of a market top.
Some traders are warning of a potential drop to $80,000, which would constitute a regular bull market correction compared to previous BTC price cycles. Others are eyeing comparisons to last year's BTC price action to predict a return to upside after "a few more weeks of struggle."
The absence of liquidity during the holiday period may exacerbate moves up or down, and traders are watching key levels, including $115,000 and $80,000, which are stacked with liquidity.
A drop of $20,000 is possible due to a macro liquidity crunch, according to some analysts. The relationship between Bitcoin prices and global money supply may also play a role in the potential correction.
However, some indicators, such as the Smart DCA tool, are flashing buy signals, suggesting that the current price level may be a good opportunity for dollar-cost averaging.
Overall, the Bitcoin market is at a critical juncture, and traders are advised to be cautious and prepared for potential volatility. The upcoming week may see further market movements, and traders should keep a close eye on key levels and indicators to make informed decisions.
Key points:
- Bitcoin is at a bearish crossroads, with support failing and the price struggling to preserve the mid-$90,000 zone.
- A "bearish engulfing" candlestick formation on the weekly chart has traders nervous about the short-term outlook for BTC/USD.
- Some forecasters see a chance of a major dip, with targets including a return to near old all-time highs of $74,000.
- Crypto market sentiment is rapidly souring, but "greed" still reigns, according to the Crypto Fear & Greed Index.
- A drop of $20,000 is possible due to a macro liquidity crunch, according to some analysts.
- Some indicators, such as the Smart DCA tool, are flashing buy signals, suggesting that the current price level may be a good opportunity for dollar-cost averaging.
The Bitcoin market is at a bearish crossroads as support fails and the price struggles to preserve the mid-$90,000 zone. A "bearish engulfing" candlestick formation on the weekly chart has traders nervous about the short-term outlook for BTC/USD. Some forecasters see a chance of a major dip, with targets including a return to near old all-time highs of $74,000.
The market is reeling from last week's hawkish Fed meeting, and the upcoming US jobs data may lead to further volatility. However, those looking to gain long-term BTC exposure may get their first buy-in opportunity in two months, according to data from a dedicated indicator.
Crypto market sentiment is rapidly souring, but "greed" still reigns, according to the Crypto Fear & Greed Index. The index remains in "greed" territory, which has historically been a sign of a market top.
Some traders are warning of a potential drop to $80,000, which would constitute a regular bull market correction compared to previous BTC price cycles. Others are eyeing comparisons to last year's BTC price action to predict a return to upside after "a few more weeks of struggle."
The absence of liquidity during the holiday period may exacerbate moves up or down, and traders are watching key levels, including $115,000 and $80,000, which are stacked with liquidity.
A drop of $20,000 is possible due to a macro liquidity crunch, according to some analysts. The relationship between Bitcoin prices and global money supply may also play a role in the potential correction.
However, some indicators, such as the Smart DCA tool, are flashing buy signals, suggesting that the current price level may be a good opportunity for dollar-cost averaging.
Overall, the Bitcoin market is at a critical juncture, and traders are advised to be cautious and prepared for potential volatility. The upcoming week may see further market movements, and traders should keep a close eye on key levels and indicators to make informed decisions.
Key points:
- Bitcoin is at a bearish crossroads, with support failing and the price struggling to preserve the mid-$90,000 zone.
- A "bearish engulfing" candlestick formation on the weekly chart has traders nervous about the short-term outlook for BTC/USD.
- Some forecasters see a chance of a major dip, with targets including a return to near old all-time highs of $74,000.
- Crypto market sentiment is rapidly souring, but "greed" still reigns, according to the Crypto Fear & Greed Index.
- A drop of $20,000 is possible due to a macro liquidity crunch, according to some analysts.
- Some indicators, such as the Smart DCA tool, are flashing buy signals, suggesting that the current price level may be a good opportunity for dollar-cost averaging.
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_Aave: The Decentralized Lending Platform Revolutionizing the Crypto Space_
Aave is a decentralized lending platform that enables users to lend and borrow cryptocurrencies in a trustless and transparent manner. Founded in 2017 by Stani Kulechov, Aave has grown to become one of the leading decentralized finance (DeFi) protocols in the cryptocurrency space.
_How Aave Works_
Aave's platform allows users to deposit cryptocurrencies into a liquidity pool, which is then used to provide loans to borrowers. The platform uses a unique algorithm to determine interest rates, ensuring that lenders receive a fair return on their investment.
Aave's lending protocol is built on the Ethereum blockchain, utilizing smart contracts to facilitate transactions. The platform supports a wide range of cryptocurrencies, including Ethereum, Bitcoin, and various ERC-20 tokens.
_Key Features of Aave_
Aave's platform boasts several innovative features that set it apart from traditional lending platforms. Some of these features include:
- _Decentralized Governance_: Aave's governance model is fully decentralized, allowing users to vote on proposals and shape the future of the platform.
- _Flash Loans_: Aave's flash loan feature allows users to borrow cryptocurrencies for a short period of time, without the need for collateral.
- _Rate Switching_: Aave's rate switching feature enables users to switch between fixed and variable interest rates, providing greater flexibility and control.
- _aTokens_: Aave's aTokens are interest-bearing tokens that represent a user's deposit on the platform. aTokens can be used as collateral or transferred to other users.
_Aave's Tokenomics_
Aave's native token, LEND, is used to govern the platform and provide incentives to users. LEND holders can vote on proposals, participate in liquidity mining, and receive discounts on platform fees.
In 2020, Aave migrated to a new token, AAVE, which replaced LEND as the platform's native token. AAVE is used for governance, liquidity mining, and staking, and is available on several major cryptocurrency exchanges.
_Use Cases for Aave_
Aave's decentralized lending platform has several use cases that make it an attractive solution for users. Some of these use cases include:
- _Lending and Borrowing_: Aave's platform enables users to lend and borrow cryptocurrencies in a trustless and transparent manner.
- _Yield Farming_: Aave's liquidity mining feature allows users to earn yields on their deposits, providing a new way to generate passive income.
- _Decentralized Finance_: Aave's platform is a key component of the DeFi ecosystem, providing a decentralized alternative to traditional lending platforms.
_Challenges and Future Development_
While Aave has made significant strides in the DeFi space, the platform still faces several challenges and areas for future development. Some of these challenges include:
- _Scalability_: Aave's platform is built on the Ethereum blockchain, which can be prone to congestion and high transaction fees.
- _Regulatory Uncertainty_: Aave, like other DeFi protocols, faces regulatory uncertainty, which can impact its future development and adoption.
- _Security_: Aave's platform, like other decentralized applications, is vulnerable to security risks, such as hacking and smart contract vulnerabilities.
Despite these challenges, Aave's team is actively working on several initiatives to improve the platform's scalability, security, and usability. These initiatives include the development of a new scaling solution, the implementation of additional security measures, and the expansion of the platform's user interface.
_Conclusion_
Aave is a pioneering decentralized lending platform that is revolutionizing the way users interact with cryptocurrencies. With its unique features, such as flash loans and rate switching, Aave is providing a new level of flexibility and control to users. While the platform still faces several challenges, Aave's team is committed to ongoing development and improvement, ensuring that the platform remains a leading player in the DeFi space.
🩸The #1 Mistake New Crypto Traders Make
One of the biggest mistakes new crypto traders make is failing to take profits when the market is up. It's easy to get caught up in the excitement when prices rise, especially after a long period of decline. The market may have already surged 2-3x from its bottom, and while it’s tempting to ride the wave further, many traders neglect to lock in profits when they’re sitting on a substantial gain. This often leads to missed opportunities and the painful scenario of watching those profits evaporate when the market eventually corrects.
🩸The key to successful crypto trading isn’t just about identifying good entry points—it’s also about knowing when to realize profits. One approach I recommend is simple yet effective: when your investment has grown more than you expected, take half of your profits. By doing this, you secure some gains while still allowing the remaining position to ride the potential upside. This strategy balances risk and reward, helping you protect your gains while still staying exposed to the market’s upside potential.
🩸If you don’t take profits when the market is up, and you don’t have the cash to buy more during the next dip, you’re essentially locking yourself into a position of uncertainty. This is why having a clear profit-taking strategy is critical—locking in some profit while letting the rest run can keep you in the game long-term, rather than holding onto everything and risking it all when the market turns. Remember, crypto trading isn’t about riding every wave to the highest peak; it’s about protecting and growing your wealth over time.$BTC $ETH