Bullish pattern still in play for BTC heading into the weekend
DeFi Continues to Eat Away at BTC’s Market Share
In the global financial markets, a potential COVID-19 treatment promoted some optimism and drove stock prices higher. Both the Nasdaq Composite Index and S&P 500 hit all-time intraday highs. Meanwhile, the gold price reached its lowest closing level in about a month.
The market's focus is largely on the upcoming Jackson Hole Forum, a significant global economic meeting. Federal Reserve Chairman Jay Powell will present on Big Thursday and, if his speech boosts expectations of inflation, the Dollar Index is expected to continue its bounce and potentially hinder the rise of the stock market.
The Bitcoin (BTC) price is still correlated to the gold price, to some extent, and is down 1.86% in the last 24 hours. With the exception of Ether (ETH), which outperformed Bitcoin by 0.3%, all major altcoins were down between 2% and 4%. Chainlink (LINK) has fallen for nine of the last 10 days and has now lost support at $15.
The total cryptocurrency market capitalization only decreased 0.9% to $376 billion, as per data from CoinGecko. Since BTC’s dominance dropped another 0.3% to 56.8%, decentralized finance tokens are gaining more market share.
Aave (LEND) is up 19.81% overnight following news that it has received a U.K. financial license to issue electronic money. Meanwhile, LEND overtook Maker (MKR) as the platform with the most total value locked on Ethereum, according to DeBank's data.
Additionally, Curve (CRV) is back above $3.00 after rising 7%. The yearn.finance (YFI) price is also back near $14,000.
Decentralized storage project Filecoin (FIL) is up 16% overnight following the launch of a mining competition. The Filecoin mainnet is scheduled to launch in mid-to-late September.
Top altcoin gainers and losers
- LEND/USDT +19.81%
- DOT/USDT +14.90%
- KACASH/USDT +13.67%
- BTM/USDT -4.93%
- AE/USDT -10.57%
- STORJ/USDT -17.05%
Aside from LEND, mentioned above, Polkadot (DOT) was in high demand after its 100x split three days ago. It has risen for a second day in a row and is up 14.90%.
STORJ, which surged 35% at this time yesterday, saw significant profit-taking pressure and fell 17%.
BTC technical analysis
The rebound from Aug. 22 has shown signs of volume amplification, but the volume is still relatively low. An intraday threshold is located at $11,630. BTC still has the probability to test lower support at $11,200, in the short-term. The upper resistance is around $11,900.
ETH technical analysis
The intraday threshold for the price of ETH is located at $400 with a critical support level near $385. We can still observe a strong demand for ETH, due to the continued interest in decentralized finance.
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