In crypto news today, Bitcoin (BTC) has finally broken above the descending trendline that has kept it below $9,300 for the past week while Ethereum (ETH) is revealed to settle more value than BTC due to stablecoin and DeFi usage.
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Bitcoin Breaks $9,300
The king of crypto has been trading relatively sideways in a tight range between $9,000 and $9,300 since early July, with analysts predicting a return of volatility for a few days now as the consolidation period drew to an end.
As early as May this year, many analysts saw mid-to-late July as a key breakout point for the BTC/USD trading pair, although in exactly which direction was uncertain. Now it shows promise of confirming that move as an upwards break.
With a big jump earlier today taking it within a few dollars reach of $9,400, Bitcoin should ideally close today above its 50-day simple moving average (SMA) to confirm a trend reversal. It still faces strong resistance at $9,500 and $10,000, with support at $9,250 and $9,100 should it fail to maintain upward momentum.
BTC/USD technicals paint an interesting picture for the week. Moving averages give a strong buy signal on the 4-hour and the weekly but less so on the daily. This means we will likely see some more upward movement before a correction later today that could drag out into the week before more gains arrive.
Sentiment wise, this upward movement will be greatly welcomed by the crypto trading community, many of whom have been waiting with strained patience for some movement. Considering the level of uncertainty, this bullish sign should draw in investors who have been sitting on the sidelines which could facilitate more gains.
However, with many weeks now of Bitcoin closing lower highs, the initial fervor over the May halvening event has dissipated. Coupled with the troubled economy, widespread job losses, and tightening wallets, it may take a more significant sign to get Bitcoin rallying again.
The altcoin community has taken advantage of Bitcoin’s lackluster performance lately, coming out from the shadows in force. There has been no lack of news about top altcoins like Cardano (ADA), Chainlink (LINK), and EthLend (LEND), and Synthetix (SNX), each up by 50%, 80%, 133%, and 162% respectively in the past 30 days.
Much of the altcoin market resurgence has been driven by DeFi protocols, largely spurred on by ‘yield farming‘ on platforms like Comp.Finance and Aave. While much of this trading activity has been criticized as unsustainable, it has reignited an interest in crypto which can only be good in the long run.
Even Ethereum’s own Vitalik Buterin has voiced his reservations regarding DeFi, despite the market helping to boost the Ethereum blockchain on which most protocols are built. Statistics from blockchain analysis firm Messari reveals that the increased usage of Ethereum-based stablecoins coupled with decreased BTC trading activity means Ethereum is now settling more value than BTC for the first time ever. Adding to this value is the increased interest in Ethereum-based ERC-20 tokens that power the emerging DeFi market.