Bitcoin (BTC), Altcoins and especially DeFi have been going through tough times for a few days. The last few weeks have been tough for the DeFi market, especially for cryptocurrencies like Yearn.finance’s YFI token and Curve DAO token. Since it set an all-time high price of $ 44k, the YFI has recovered by 70 percent and dropped to as low as $ 13k earlier today.
Yearn.Finance (YFI) Price Analysis
After predicting the last leg of the ongoing YFI decline at $ 14k, a trader claimed that the cryptocurrency was heading towards $ 12k. As can be seen in the chart below, the YFI falling to $ 14,000 brings it below an important support level that declines further towards $ 12,000. If the cryptocurrency drops from current levels to $ 12,000, it will experience an 18% correction.
However, despite the net loss of momentum in the YFI price, some analysts are more optimistic about the project than ever before. Mechanism Capital founder Andrew Kang recently disagreed with those who thought Yearn.finance was a worthless project due to falling yields. He emphasized that the developers of the project have a set of strategies that will allow them to generate relative value over other DeFi platforms.
YFI was trading at $ 12,975 at the time of writing.
Bitcoin (BTC) Price Analysis
With less than 12 weeks to 2021, there is a risk of invalidating the four-year cycle theory based on the overall BTC supply and every subsequent halving. If these patterns are correct, following past trajectories suggests that an upside break will start a new bull market. A setback at these levels can lead Bitcoin to the unknown.
According to the chart of Bitazu Capital co-founder Mohit Sorout on TradingView, the breakout range available for confirmation of the trend change or continuation is roughly a thousand dollars, ranging from 10,200 to 11,200 dollars.
Sorout is a self-proclaimed volatility and momentum “algo” trader and appears to be using a specialized tool for analysis. Both have been declining recently, resulting in this tightening range. But when it breaks, whatever trend, it is likely to dominate Bitcoin for the rest of the year. Bitcoin was trading at 10 594 at the time of writing.