Is Bitcoin too centralized now to succeed? Binance’s grip raises new red flags!
- Relief across the market helped Uniswap bounce from its local lows
- This could turn out to be a minor relief rally instead of a long-term bullish reversal
President Trump announced a 90-day pause on tariffs for all countries, with China being the sole exception. The sell-off in the U.S Treasury market might have spurred this move, giving the global stock markets some relief.
This news was good for crypto too. Bitcoin [BTC] bounced by 5% in an hour on the back of this announcement. Uniswap [UNI] also saw a price bounce, but its long-term trend remained bearish.
Uniswap retests $5.5, but caution is advised until a breakout
Source: UNI/USDT on TradingView
Over the last 24 hours, UNI bounced from $4.55 to $5.5 – A 20% leap. This was a retest of the former $5.52 support, now a resistance level. At press time, Uniswap bulls had not managed to break out past this level.
The RSI on the daily chart has been below neutral 50 since January. The price also made lower lows and lower highs over the past two months. Together, they pointed towards a strong downtrend, which has not yet halted.
The OBV refused to drop below its March lows, despite the recent uncertainty. This seemed to offer bulls some hope that a recovery was brewing, although it was not yet here.
Since the $5.5-level was a resistance level and the long-term trend was bearish, it is likely that the price could fall further towards $3.7. The latest BTC bounce above $80k might not signal an immediate bullish reversal for the market.
Source: UNI/USDT on TradingView
On the 4-hour chart, the price action of the past ten days was bounded by a descending trendline. The recent bounce was unable to climb beyond the trendline, again underlining bullish weakness.
Although the RSI climbed above neutral 50, bulls must remain cautious. The OBV has also set a slightly higher high – An encouraging start. Traders can use a retest of $5.52 as support to go long. Until then, caution may be warranted.
The $4.6-level has developed into a short-term support and could be tested soon. A move below this level would signal a bearish continuation, and traders could look to sell UNI short thereafter.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
