The Move Away From Bitcoin As Buyers Eye Altcoins and DeFi Tokens for Profits
Bitcoin (BTC) price has halted and stuck below 11,000 USD driving traders to look for greener pastures in altcoins and DeFi tokens.
For the last couple of weeks, BTC price has moved close to 8,500 USD territory and of late the price trend has resumed daily higher lows.
Despite this, 11,000 USD continues to be the obstacle that the price has struggled to defeat however one positive is that altcoins are starting to recoup some of the large losses seen over the last few weeks.
Maybe now that CME BTC options closed with no significant disruption and we are on the brink of a new month, BTC price could make a move higher and finally breach the 11,000 USD resistance.
The weekly time span indicates strong support from 10,000–10,500 USD and as one expert said: “Bulls have consistently purchased dips to and below 10,000 USD and this psychologically important level may now act as a floor for launching the next leg of the uptrend.”
As indicated on the chart, 11,000–11,200 USD has been a problematic territory to breach and risk-averse traders are likely waiting for 12,000 USD to go from resistance to support prior to opening a new position.
BTC/USDT Weekly Chart.
While 10,000 USD has remained a strong level of support since the price made a double bottom at 9,800 USD, a return to the high volume VPVR node at 9,500 USD is conceivable if BTC breaks the trend of higher lows by falling beneath the climbing trendline to 10,100 USD.
This appears unlikely given that bulls have held the 10,000 USD level with vigour over the last couple of weeks.
BTC/USDT Daily Chart.
Ultimately, very little has changed and the price of BTC continues to gradually climb higher. In case of a breakout with continuos buying from bulls, BTC’s price might break through the 11,000 USD resistance to attempt higher to around the 11,400 USD level.
As highlighted in the daily timeframe, on the 3rd of September BTC price fell by 13.3% from 11,400 USD and the high volume VPVR node at this point implies it will now act as resistance.
While BTC’s price continues to consolidate, altcoins moved marginally higher. At the time of publishing Polkadot (DOT) has increased by 4.99%, OMG Network (OMG) gained 25.18%, and Maker (MKR) climbed 6.09%.
According to CoinMarketCap, the overall cryptocurrency market cap is currently at 343.7 billion USD and BTC’s dominance stands at 57.5%.
As per CoinMarketCap, the general digital money market top presently remains at $343.7 billion and Bitcoin’s strength file is right now at 57.5%.
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