9. Oktober 2020

Bored by the price of Bitcoin, traders chase profits in altcoin and DeFi tokens

The price of Bitcoin moves sideways stuck under $11,000, prompting traders to look for greener pastures in altcoins and DeFi tokens.

In recent weeks, the price of Bitcoin (BTC) has remained constrained within a $850 wide range, recently resuming the trend of increasing lows on the daily chart.

Despite this, the $11,000 remains an obstacle that the asset is struggling to overcome, but the upside is that the altcoins are starting to recover some of the heavy losses incurred lately.

Perhaps, now that the CME’s Bitcoin options have closed without much turbulence and a new month is about to begin, the price of Bitcoin could move up and finally gain resistance at $11,000.

The weekly chart shows strong support in the range between $10,000 and $10,500, and as reported by Cointelegraph collaborator Rakesh Upadhyay:

„Bullishers have systematically bought the contractions in the vicinity and below $10,000, and now this level of great psychological importance could act as a basis for the launch into the next stage of the bullish trend.“

As the chart shows, the $11,000-11,200 zone has proved difficult to overcome and risk-averse traders are likely to be waiting for the $12,000 conversion from resistance to support before opening new positions.

The $10,000 level resisted as strong support following the double low of $9,800 traced by the price. However, a new visit to the high-volume VPVR node near the $9,500 remains a possible outcome if BTC breaks the pattern of the rising lows by falling below the upward trend line at $10,100.

This scenario seems unlikely considering that in the last two weeks the bullish have defended the $10,000 level with considerable determination.

In essence, not much has changed and the price of Bitcoin simply continues to rise slowly. In case of a breakout with sustained buying pressure from the bullish, Bitcoin Storm could break the resistance at $11,000 and try a higher high above $11,400.

As can be seen in the daily chart, on September 3rd the Bitcoin price lost 13.3% from $11,400, and the high volume VPVR node at this level suggests that it will now act as resistance.

While BTC continues to consolidate, altcoins are moving moderately upwards. At the time of writing, Polkadot (DOT) rose 4.99%, OMG Network (OMG) gained 25.18% and Maker (MKR) 6.09%.

According to CoinMarketCap data, the total market capitalization of cryptocurrency is currently $346 billion, and Bitcoin’s dominance index is 57.5%.