Crypto Weekly: Effects of Creating Uniswap Token and Small Bitcoin Growth
The market had a positive trend over the past week. Bitcoin is up 6% and hovers around $11,000. Most likely, the growth was associated with a large amount of news released this week.
Bitcoin has had another recalculation of the network difficulty, and at this time, this indicator increased and reached a new record value. It is due to the fact that new miners continue to come to the Bitcoin network and mine coins. Thanks to this, the hashrate also set a new record on September 17th, showing a value of 153 Ehash/s.
However, the main event was the release of UNI tokens from the largest decentralized exchange, Uniswap. Every user who has used this platform for exchange before September 1st, is entitled to receive 400 tokens. The demand was so great that the average commission on the Ethereum network went up to $12. At the same time, the number of transactions set a new record, with a value of 1,406,000.
The hype around this event was so big, that many exchanges decided to take advantage of it. Binance added UNI to its exchange an hour later, and at the end of the day, Coinbase Pro also added the token to its exchange. Following them the next day, Bitfinex and Huobi listed Uniswap Token. 4 days later, UNI token has already traded on more than 20 largest exchanges.
All of this contributed to the strongest growth of the UNI token. Initially, its price was $2, and a day later it increased to $15. At the moment, we are seeing a correction of such a powerful growth, and now UNI is trading at $4.5.
We also saw several more records this week. Bakkt futures trading volume has set a new record of over $200 million. At the same time, it became known that the capitalization of Tether exceeded $15 billion. This is due to the increasing popularity of the stablecoin in the DeFi markets. Over the past month, the capitalization of Tether has already increased by $3 billion, or 25%.
Bitcoin
Last week we gave a forecast for Bitcoin’s growth to $11,000, and in the end it was correct. However, this growth can be called corrective. At the current moment, the market is not very active and there is a high weakness of the current growth. Why do we think so?
- The growth was on the background of declining volumes
- The Stochastic indicator has broken through the overbought line and is turning down.
- Consolidation in the $10,100 — $10,300 range was short-lived after huge liquidations of $1 billion.
Most near support is $10,000. This is indicated by the Fibonacci grid of March 12th. However, there is great doubt that this level will be able to resist. For 7 days in a row, the price dropped in the range of $9,800 — $10,000, but then the daily candles invariably closed above $10,000. This could be a sign that purchases at these levels that have sold out in the $10,800 — $11,200 range.
Therefore, in the coming weeks, we will again see a fight near $10,000. When this level is taken, the price will likely decrease to $9,000 quickly. Just this level is now the main support for Bitcoin price.
