The BTC price regained momentum this morning and broke the $15,800 resistance level. Bulls made another attempt to push beyond the recent high of $15,950 and aimed for a $16K retest.
And while the attempt was successful, the flagship cryptocurrency faced an intense $500 rejection that sent prices spiralling lower. Luckily, the bulls were able to guard the $15,500 support, and therefore downsides were limited.
At the time of writing, the BTCUSD pair has gained just under 2% and is trading above $16,000. Today’s price action marks a significant technical breakout that points to a possible further upside in the near-term.
BTCUSD Chart By TradingView
Why BTC Trading Above 16k is Historical
Analysts believe this milestone run by BTC is of massive historical significance because aside from the woes of coronavirus on stocks and cryptos at large, this is a sign that the BTC price has had an incredibly bullish 2020. Well, if this fired up bullish momentum continues, 2017’s 20k mark could be reached in just a matter of months.
After the flagship crypto consolidated above the crucial $15K level for a couple of days, today’s break above $16K reflects what happened in 2018, when the flagship coin ran headfirst into intense resistance after managing to trade above this level.
On Jan1, 2018, BTC saw a weekly close at $16,150 that marked the bear market’s start. The world’s leading cryptocurrency never again set a higher high until just weeks ago. This time around, analysts suggest that the BTC rally could be more sustainable. Could it be this year’s halving event, or maybe the pandemic has boosted its adoption? Analysts are yet to find a decent theory.
However, a trader by the username CryptoUnfolded took to Twitter to make his bullish case for Bitcoin’s present upside potential. He noted that BTC had maintained a high premium on the Chicago Mercantile Exchange (CME) over the past few months.
In fact, king coin was trading above $16K before hitting that level on spot exchanges earlier today. This indicator means that buyers are incredibly bullish on the benchmark digital coin and are surprisingly willing to pay a hefty premium for it.
DeFi May Not Be Dead After All
As we had reported yesterday here at TDC, popular DeFi tokens – Aave (AAVE) and Yearn. Finance’s YFI – have both rallied over 100% over the past few days, speculated to spurred on by the ongoing ETH and BTC rallies. At press time, AAVE trades for $52.39, while YFI changes hands at $15,431 as per data from CoinMarketCap.
The DeFi rebound has caught many investors off guard, as Bitcoin looked likely to continue sucking all the oxygen from crypto markets with its inspiring uptick.
And now, one analyst has come out to explain the reason behind the rapid recovery of the DeFi market, with blue-chip tokens such as Aave, YFI, and SNX leading the way.
“Today, many are still in disbelief. But all mindshare is on DeFi. The liquidity in DeFi is simply not big enough to accommodate all of them. Hence the massive high-volume V-shaped recovery,” crypto analyst and DeFi investor Qiao Wang explained.