Bitcoin Holders Wants DeFi as Tokenized BTC Hits $1 Billion
After Bitcoin (BTC) failed to hold the $11,000 mark and exposed a general apathy to trade BTC at these levels. Its price is once again flirting with $11,000.
According to Marcel Pechman and Michael van de Poppe, a move over $11,000 is not a profoundly significant milestone. And this is because the confluence of multiple factors, like looming overhead resistance and low trading volume, decreases the chances of Bitcoin breaking out once above $11,000.
Aside from that, they could attribute the supposed lack of interest from traders to other massive developments taking place in crypto. In a report, decentralized exchange, UniSwap, airdropped 400 UNI tokens to all users who gave liquidity before the beginning of September.
A lot of crypto advocates and pundits mentioned that UniSwap’s helicopter money is bigger than the $1,200 economic stimulus check the government provided to citizens at the behest of the Trump Administration.
BTC Tokenized to ETH
Then, another achievement is the value of Bitcoin tokenized on Ethereum surpassed $1 billion this week. With that, it points out the overwhelming interest and demand from BTC holders wanting to interact with DeFi protocols.
During the last two months, the Bitcoin price has been struggling to knock out the $12,000 to $12,500 resistance level. So, clever traders with long BTC have wrapped their coins to either become liquidity in incredibly lucrative liquidity pools pr investors in successful DeFi tokens such as YFI, YFL, LEND, and REN.
According to data from Btconethereum.com, a total of 96,059 Bitcoin have been wrapped on the Ethereum blockchain. In this figure, 64,466 BTC are in WBTC, 21,952 in renBTC and 4,810 in HBTC.
Besides the record number of BTC being wrapped to ERC-20, Tether’s (USDT) market cap has boosted over $15 billion. And for people familiar with yield farming would determine that utilizing stablecoin to give funding to liquidity pools is somehow lucrative.
Though the data is not substantive enough to conclude that Bitcoin traders are having their dinner at another table, there are still other opportunities out there. Especially now that BTC is in sideways and struggling to find momentum. In data, it suggests that several traders are capitalizing on them.
The Future of BTC Price
For the short-term, the 4-hour chart displays that Bitcoin price climbed back above the 20-MA. Thus, it is making higher lows and lower highs – a positive sign. Then, on the 4-hour and daily time frame, the volume profile visible range (VPVR) shows resistance at $11,280 and $11,600.
Moreover, the most immediate hurdle of Bitcoin is at $11,500. Another rejection from this level might result in the price retrace to support at $10,500 and $10,350.
As everyone notices, volume precedes price. And the recent lack of buy volume does little to encourage confidence from traders. Many sharp-eyed traders will also see the bearish divergences on the daily moving average convergence divergence and the relative strength index.
Currently, Bitcoin price remains at risk of a correction to $9,700 or slightly lower at $9,183 – where the 200-MA recently resides. And this would only change if bulls turn up to present some buying pressure.
