It’s true that bitcoin finally broke out of its 10-day no trend price range of $10k-$10.5k but now it has something to prove. Investors are waiting to see if there is real market sentiment to back-up bitcoin’s price movement.
Daily Chart XBT/USD
It only took bitcoin 2.5 hours to go from $10,670 to $10,926. For crypto standards, this isn’t exorbitant price action, but considering that bitcoin has been asleep for quite some time we can say that it was a significant jump. I would say that it was too large of a jump because in a matter of 3 hours we were back to where we started, at $10,687. The bulls failed to keep buying pressure high to create a new support level at $10,750. Now, bears are back in the game and can easily take the price down if U.S. markets don’t like what the Fed has to say on Wednesday’s meeting.
On the other hand, we continue to have positive on-chain indicators signaling adoption in DeFi and bitcoin. Bitcoin’s mining hashrate is hitting an all-time-highs with a daily average reaching 151 million terahashes per second. The next difficulty adjustment on September 19th is also likely to set another high.
DeFi has lent a hand in incentivising investors to hold their bitcoin by locking them up in yield farming protocols. According to DeFi pulse, bitcoin locked up in DeFi has reached 101k for the first time while also having a USD total-value-lock of $10 billion. These metrics do wonders for bitcoin’s scarcity, as its velocity decreases its price increases.