Bitcoin Bulls Must Defend $11,000, We’re Not Out of the Woods Yet
After yet another failed attempt at $12,000, Bitcoin fell to $11,100 yesterday in a multi-asset correction. As we reported, this has been a bond yield driven correction that was reflected in other markets as well, be it gold or S&P 500.
Bitcoin, however, is holding on to $11,000 level, staying above it. At the time of writing, BTC/USD has been trading at $11,450 down 1.82%.
The Bitcoin loss also meant an even harder fall for the altcoins, as such wiping out $23 billion from the cryptocurrency market.
But there is one coin that doesn't care about all the blood running down the crypto streets. Chainlink (LINK) remains as decoupled from BTC as ever as it jumps 11% to trade at $13.60, back to its all-time high of $14.40 from Monday.
This has been thanks to the latest DeFi token that is taking this space by the storm and a select few other DeFi tokens flying.
Bulls Better Perform
Despite the losses, bitcoin is not looking bad, although it doesn’t mean we are out of danger either. Trader Jonny Moe said,
“Certainly not out of the woods, but BTC setting up nicely on the 4h with this back to back doji/tweezer look.”
“A reversal here starts to set up a nice look at a possible ascending triangle, which I've drawn a lot of lately, but they just keep painting,” he said.
Meanwhile, trader DonAlt is still leaning towards bearish as he talks about bitcoin being above $11,000 good for bulls while a close below this level and losing $10,600 on the weekly timeframe would be bearish for the digital asset. He said,
“Bulls really don't want to see these levels fall; otherwise it's a short way back in the old range.”
Intrinsic Value Jumps
The world’s leading cryptocurrency has been enjoying an uptrend for about a fortnight now, which has bitcoin up 56.38% YTD.
Amidst these gains, we saw institutional interest continuing to ramp up. While Bakkt had record trading volume, OI on CME bitcoin futures has been making its move to $1 billion.
“We are continuing to see increased interest from institutional investors,” said Henri Arslanian, PwC Global Crypto Leader in Hong Kong.
“Institutional investors now can get access to digital assets via multiple players that are regulated, of institutional-grade, and that would pass any operational due diligence test of any institutional investor. This was not the case 18 months ago.”
As we reported yesterday, the first publicly listed MicroStrategy replaced cash with bitcoin in its balance sheet as a reserve asset.
Meanwhile, according to a recent note by JPMorgan strategist Nikolaos Panigirtzoglou, millennials are supporting bitcoin, which sees it as an “alternative” currency. This generational support is also set to inherit $68 trillion in the coming decades.
Panigirtzoglou also talked about bitcoin’s intrinsic value seeing a jump thanks to the halving. He wrote,
“Much of the gap between the market price and intrinsic value was closed by a decline in the latter as miners responded with a combination of a decreased overall hash rate and improvement in efficiency, likely as less efficient rigs were turned off.”