Bitcoin Breaks The $10, 000 Resistance After Nearly Two Months as Ethereum DeFi Ecosystem Continues to Surge

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After nearly two months of subliminal activity, bitcoin price surged to above $10, 200 and in the process liquidated over $75 million worth of short contracts.

At one point on July 26, 2020, bitcoin was trading at $10, 272.

SEE ALSOInstitutional Demand for Bitcoin Soars to Almost $1 Billion in Q2, 2020, Almost Double Compared to Q1, 2020, Says Latest Investment Report

A few reasons have been provided to explain this sudden upsurge of the largest cryptocurrency by market value:

  • Simultaneous rejections of major altcoins – Traders likely took profit from recent altcoin rallies and moved those gains to bitcoin triggering a price uptrend
  • $10, 200 is a heavy resistance level – This is suggested by the massive liquidation that occured at this price within a span of a few hours, which is less typical of bitcoin

While a few traders are optimistic about the uptrend, data on BitMEX shows that the majority of the market is taking long positions.

On the other hand, ETH funding rate seems to suggest that its rally is already overheating. Over the past one year, investors have been loading up on Ethereum long positions with Bitfinex alone recording 510 million today up from just over $50 million at the start of 2020. That is roughly a 900% increase!

As the DeFi sector growth continues to drive users and transaction volumes to the Ethereum blockchain, analysts say the Ethereum technical outlook is incredibly strong. The upcoming launch of Ethereum 2.0 is expected to keep this momentum.

Some of the Ethereum DeFi market top players seeing huge surges in recent weeks include:

  • Chainlink (LINK)
  • Synthetix Network Token (SNX)
  • Kyber Network (KNC)
  • Cardano (ADA)
  • Ampleforth (AMPL)

How long this Defi bubble is going to be maintained is still unclear. As of now, DeFi investors are going all out on different DeFi investments.

 

 

 

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