Bitcoin (BTC) Dropped Due to DeFi

Bitcoin (BTC) Dropped Due to DeFi

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The protracted fall of bitcoin has divided analysts into 2 camps. Some ща them are sure that the fall will continue and recommend to withdraw money from BTC. Others, on the contrary, are sure that it is better to use this moment to enter Bitcoin in order to make a profit on its subsequent growth.

Bitcoin failed to gain a hold above $12K, so it dropped to $10K. This is the opinion of technical analysts. In addition to technical analysis, the stock market also gives negative signals. And cryptocurrencies this year began to correlate with it. Technical analysts cautiously predict that if BTC holds above $10K, then it will rise to $12,500. However, it is highly likely that BTC will drop to $9000. In the future, the fall will continue to $6K or even to $5K.

The popular trader of the Amsterdam Stock Exchange, Marius van de Poppe (Crypto Michael), calculated that the real level of BTC support is $9,900. A rebound from this level will be made to the level of $ 10,800. According to the trader, the uptrend is not over.

If he is right, then traders should buy in the range of $10,000 – $10,300 for the gaining of subsequent profit when BTC will rise. Not all players agree with this tactic, considering that the risk of the drop is still great. It is pointed out that the current rally did not make bitcoin to renew its annual maximum, which is $14K and was reached in June 2019. Therefore, there is no certainty that the current uptrend is long-term.

Bitcoin is considered a highly risky asset. Therefore, it can be especially closely correlated with other high-risk fiat market assets such as Zoom and Tesla stocks. And they are just demonstrating a fall.

BTC began its decline on September 2. As a rule, following the fall of the king of cryptocurrencies, the entire market falls. This is the case with leading coins including ETH and XRP. But last times there are always some altcoins that show an inverse correlation with bitcoin. This time it is so too.

The Binance BNB token has been growing for a while. Analysts attribute this to the announcement of the Binance Liquid Swap liquidity pool. If you add cryptocurrency to it, you can receive a percentage as from a deposit. The Celo token also grew up on the news of its inclusion in the listing of several exchanges. Due to listing on exchanges, tokens of several DeFi projects have also grown, including, for example, tBridge Token (TAI). The launch of Sun’s DeFi platform pushed the Tron token TRX to grow. Its founder, Justin Sun, is renowned for his “sense of the market”. It is highly likely that he specially launched his new project during the BTC correction phase for more dynamic TRX growth.