After failing to hold the $ 11,000 mark and revealing what some analysts have described as the general indifference of BTC trading at these levels, Bitcoin (BTC) is flirting with $ 11,000 again.
As Cointelegraph shareholders Marcel Behman and Michael Van de Pope have suggested, a rally above $ 11,000 is not a landmark, as a combination of several factors, including the threat of resistance to overheads and low trading volume, makes digital assets less likely to break. … time more than 11 thousand dollars.
The lack of interest observed on the part of traders may be related to other important developments in cryptography. As reported by Cointelegraph, the decentralized UniSwap exchange sent out 400 UNI tokens for every user who provided liquidity before early September.
Several cryptocurrency advocates and experts point out that UniSwap’s helicopter money is more than the $ 1,200 economic stimulus amount distributed by the US government to residents on behalf of the Trump administration.
We also add that it took UniSwap users not many months before they received their UNI network, whereas it is Americans today who have yet to receive the incentive check.
Bitcoin Token in Ethereum exceeds $ 1 billion
Another major milestone worth noting is that the value of the bitcoins encrypted on Ethereum exceeded $ 1 billion this week. This confirms the great interest and demand from Bitcoin owners who want to interact with DeFi protocols.
As Bitcoin’s price has struggled to overcome the $ 12,000-12,500 resistance level over the past two months, savvy long-time BTC traders have rolled their coins into either liquidity providers in incredibly profitable liquidity pools or investors in the successful DeFi. Tokens like YFI, YFL, LEND, REN and many more.
The Btconethereum.com data shows that only 96.059 BTC are packaged on the Ethereum blockchain. Of this total, 64,466 BTC is from WBTC, 21,952 RinBTC and 4,810 from HBTC.
Aside from the standard amount of BTC wrapped in ERC-20 tokens, Tether (USDT) has now exceeded $ 15 billion in market capitalization, and those familiar with Reverse Farming will know that using stacked coins to fund liquidity pools is very profitable.
While the aforementioned data are not important enough to conclude that bitcoin traders are eating at a different table, there are other possibilities, and since Bitcoin is on the sidelines and trying to find momentum, the data indicates that some traders are taking advantage of it.
What happens next with the bitcoin price?
In the short term, the 4-hour chart shows that the bitcoin price has risen again above the 20-MA, giving higher lows and lower highs, which is a positive development. On the 4 hour and daily time frames, the VPVR range is showing resistance at $ 11,280 and $ 11,600.
Below that is the most urgent hurdle at $ 11,150, and another divergence at that level could push the price to $ 10,500 and $ 10,350.
As usual, volume prevails over price, and the current lack of purchase volume does not gain trader’s confidence. Mindful traders will also notice bearish divergences in the convergence divergence between the daily moving averages and the RSI.
Until the bulls seem to be putting some pressure from buyers, the bitcoin price is still under threat of a correction to $ 9,700 or even slightly lower at $ 9,183, where the 200-MA is currently in.