- The Bitcoin price was once again rejected near the all-time due to whale activity.
- AAVE and Synthetix (SNX) are seeing a significant price increase on the back of the Coinbase listing announcement.
Bitcoin’s price has dropped again as it was rejected in the major resistance at $19,600 a few hours ago. The cryptocurrency registered a bullish momentum over the weekend and managed to return above the $19,000 level after dropping to $17,600 in previous weeks. However, the current price movement is once again showing the massive resistance zone between $19,600 and $20,000
At the time of publication, the price of Bitcoin was at $19,322 with a 0.12% sideways movement in the last 24 hours. In the weekly chart, BTC has also tended to move sideways (0.01%), but in the monthly chart, it still records gains of 19.29%.
Bitcoin whales take over exchanges, what to expect?
As analysts noted, the recent actions of the BTC price has been determined by the activity of whales. Over the weekend, an increase in buying pressure pushed the Bitcoin price beyond $18,800 to $19,300. The chart below shows the accompanying increase in whale activity.
The trader Byzantine General pointed to the negative funding rate on Binance’s for Bitcoin futures to predict a “squeeze” to $19,500, as shown in the chart below. Taking advantage of the short-term squeeze, the whales took profits causing the most recent drop in the price of Bitcoin.
Although the cryptocurrency seems to be in a phase of consolidation, whale activity could continue to be a determining factor. CryptoQuant’s CEO, Ki-Young Ju, advised caution while sharing a change in his trading strategy:
(…) Looking at All Exchange Inflow Mean (144-block MA), $BTC whales are depositing to exchanges. I think whales need more time to make a profit here. Unpopular opinion: Don’t buy the f*cking dip. Too many $BTC whales on exchanges.
In that sense, trader Michaël van de Poppe indicated that the short term trend could be pointing downwards. According to him, it is possible that BTC will drop to $18,400 or $18,600. That zone is critical to “sustain the bullish momentum”.
In line with that “CryptoBirb” believes that the consolidation phase under the resistance will be broken if the BTC price closes a weekly candle above $19,600.
“Coinbase effect” benefits Ethereum’s DeFi tokens
As Bitcoin struggles to break out of its resistance level, the bullish momentum is being taken by two DeFi tokens, AAVE and Synthetix (SNX), which are both reclaiming their highs for the year. After a week of losses, AAVE stands at $87.66 with gains of 6.45% in the last 24 hours.
On the other hand, SNX is trading at $5.28 with gains of 10.88% in the last 24 hours. In addition to the boost they have received from the rally in the bitcoin price, the tokens are benefiting from positive news. Coinbase announced that it has listed AAVE, SNX, and Bancor (BNT) for its “Pro” service.
Starting today, inbound transfers for AAVE, BNT and SNX are now available in the regions where trading is supported. Traders cannot place orders and no orders will be filled. Trading will begin on or after 9AM PT on Tuesday December 15, if liquidity conditions are met. pic.twitter.com/TFS08obL9z
— Coinbase Pro (@CoinbasePro) December 14, 2020
The news is considered extremely bullish and could lead to a continuation of the rally for the tokens. In addition, Synthetix has managed to obtain important partnerships with key players including 1inch, Binance and Alpha Finance in recent days.
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Aave has launched the second iteration of its protocol and is presenting a record week in volume for its new “Flash Loan” feature with $206 million and a total growth of $1.2 billion. Therefore, the outlook seems bullish for both Ethereum based DeFi tokens.