BTC Above $11,000, On-chain Indicators Suggest Positive Trend in Mid-Term
Bitcoin (BTC) price is 4% up today crossing $11,000 in a market-wide recovery of the crypto market. At press time, Bitcoin is trading at $11,017 with a market cap of $204 billion. The BTC price gains are in line with the overall cryptocurrency market which is up 3.28%.
The Bitcoin price surge comes just a day after Square Inc announced its $50 million investment on Thursday, October 8. The news was just a catalyst as analysts already predicted a breakout with the BTC price convergence over the last week.
It is a major development that a global corporation is now putting $BTC onto its balance sheet. The weekly and daily charts a poised to flash a big buy signal. https://t.co/p6652SfqVc pic.twitter.com/rCoKZCY5LB
— Peter Brandt (@PeterLBrandt) October 8, 2020
This is for the second time that BTC price has crossed $11,000 over the last month. In early September, BTC price tanked 1700 points, however, it managed to stay above the crucial support of $10,000 throughout the month. It was for the first time after June 2020, that the BTC price ended negative (7.5%) on a monthly chart.
Binance Unveils September Trading Report
The Binance report states that BTC’s pullback coincides with the global equity markets and more. The U.S. stock markets remained under pressure in September due to the rising uncertainty with upcoming U.S. Presidential Elections. Moreover, Donald Trump recently pulled the plug halting all stimulus talks until after the election.
BTC’s rising correlation with traditional markets has influenced the price of Bitcoin says Binance. With traders rushing to exit and hedge their position, the BTC futures “annualized rolling for a 3-month-basis” tanked from 12% to 0.1%. Despite the flat trading period, Binance’s Futures processed around $176 billion in volume during September 2020. The average daily trading for Binance Futures was $5.7 billion.
Investors’ favorite for 2020, the DeFi market also witnessed some good correction. SUSHISWAP registered its biggest fall (70%) in value as panic selling swept the DeFi sector. Most of the other popular DeFi tokens like Chainlink (LINK), Aave (LEND), MakerDAO (MKR), Compound (COMP), etc. gave negative returns last month.
However, the total-value-locked (TVL) in DeFi smart contracts jumped from $9.65 billion on September 1 to $11.23 billion on September 30, as per the data on DeFi Pulse.
Despite a mild month for Bitcoin traders, the on-chain trading activity suggests a positive trend for the medium term. Binance notes that the bull market is still intact for Bitcoin, however, it adds that macroeconomic trends will play a key role in Bitcoin’s next movement. Explaning Bitcoin’s correlation with USD, Binance explains:
The US Dollar has been a key driver of Bitcoin’s success this year. Although, the recent upswing in the Dollar has driven crypto assets lower. Any indications of weakness or a continuation of the Dollar’s relentless selling will trigger the next wave of buying in alternative assets such as Bitcoin.
Apart from Bitcoin, almost all of the top-ten cryptocurrencies are up between 3-5%, as of writing this story.
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