Yearn.Finance (YFI) Could Fall To $15K “If” Bitcoin Brings Down Crypto

Tony "The Bull" Severino

4 years ago

3 mins read

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Yearn.Finance (YFI) is one of the most talked-about cryptocurrencies of 2020, both due to its scarce 30,000 token supply and its miraculous price increase to more than 1 BTC in value.

However, the DeFi token could fall to $15,000 or deeper if Bitcoin brings down the rest of the crypto market.

Yearn.Finance, Other DeFi Tokens At Risk Of Getting Dragged Down By BTC

All cryptocurrencies are on thin ice at the moment, watching and waiting in the wind for whatever top crypto assets Bitcoin and Ethereum decide to do next.

Bitcoin has thus far held strong above $10,000 for its longest stretch yet but has been unable to set a higher high from the 2019 peak. The risk of a lower low remains a dark cloud hanging over the market and one that may finally douse out the burning hot flames of the DeFi trend.

DeFi tokens are what helped the crypto market rise up from out of the bear market lows and even the Black Thursday carnage. Growth in these tokens, such as Yearn.Finance (YFI) has easily outpaced other major crypto assets such as those mentioned above.

YFI rose from nothing to being far more valuable than even the top-ranked cryptocurrency and most dominant asset in the market, Bitcoin.

But now its at risk of falling back to more on par with Bitcoin, if the leading cryptocurrency by market cap decides to drop further.

Yearn.Finance YFIUSDT Head And Shoulders Target 50% Drop | Source: TradingView

YFI Head And Shoulders Could Confirm If Bitcoin And Ethereum Bring Down The Market

Bitcoin price dragging down the rest of the crypto market, DeFi tokens like Yearn.Finance included, YFI could complete a head and shoulders chart pattern that would send price nosediving back toward $15,000 or lower. But only “if” Bitcoin plummets, according to a crypto analyst.

The full height of the head of the structure, from neckline to peak, is roughly a 50% rise. A 50% drop as targeted by the measure rule, would take Yearn.Finance back to $11,000 per YFI token.

As pictured above, however, the right shoulder is currently incomplete and would require more downward sell pressure from bears. But after such a substantial drop already, and a low supply of just 30,000 YFI, there’s no telling what may happen if Bitcoin and Ethereum turn around instead.

Demand would come roaring back into the DeFi space, and assets like Yearn.Finance would once again be set ablaze with positive price action. If this happens, due to how limited the supply of the token is, demand dynamics will take over and drive prices to new highs instead.

So while its certainly dangerous to consider the DeFi token suddenly straddling a thin line, buying here could bring returns a head and shoulders above the rest.

Featured image from Deposit Photos, Charts from TradingView

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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