Crypto Daily: Weakness of Bitcoin Price and DeFi
Yesterday, we saw another slight drop of Bitcoin by 1.55%. The price, once again failed to show stable growth, and did not even reach the $11,000 level. This indicates that the weakness of buyers and sellers has confidently lowered the price. This is a bad sign for Bitcoin and the rest of the market. The stagnation continues.
Bitcoin
Bitcoin price is trapped in a rising wedge, the boundaries of which are alternately supporting and resistance levels. At the moment, the chart is near the lower border of the wedge, which is also the main resistance at the current moment. In the event of its breakdown, and the price-fixing below it, the chart will begin to descend straight to $9,100.
It is clearly seen that the bulls have been very weak over the last month. They have never been able to reach the upper line of the wedge during this time, which once again, convinces us that our forecast is correct.o
Additionally, there are some more signs that signal a fall, namely, the intersection of two exponential moving averages on the daily timeframe.
Historically, every time the EMA20 crosses the EMA50 line from top to bottom, the Bitcoin price falls and goes into a long downtrend. A similar situation is happening now. The intersection occurred on September 10th, and it is just a matter of time to see a new collapse in Bitcoin quotes.
Altcoins
The situation looks very bad in the altcoin market. 97 out of 100 coins have lost in value per day. This was especially reflected in the coins associated with the DeFi segment. Thus, LEND (Aave) and YFI (year.finance) fell 17%, UMA and UNI (Uniswap) — 15%. The other of the big DeFi projects fell in price from 10% to 14%. It looks like the DeFi bubble is starting to collapse.
Yesterday it became known that the most popular browser-based Ethereum wallet Metamask, has a total number of 1 million active users per month. This is a huge number that can match the user bases of even the largest cryptocurrency exchanges. Such popularity of Metamask is due to the hype around DeFi.
Yesterday, the Metamask team released another, more important piece of news. They are planning to implement a decentralized exchange aggregator right into their wallet. This means that users will be able to exchange any ERC-20 tokens without having to leave their wallets. The Metamask team said that it will initially integrate 7 decentralized exchanges, including Uniswap.
