As Bitcoin price consolidates, bulls target $11.5K and bears expect a drop below $9.8K.
Bitcoin (BTC) price appears to be gearing up for another shot at the $11K mark but traders shouldn’t get overly excited as resistance in the $11,000-$11,200 zone and at $11,389 have kept the price from moving higher for the last few weeks.
Crypto Fear & Greed Index. Source: Alternative.me
Currently the Crypto Fear & Greed Index registers 49 which shows crypto investors feel neutral about the current state of the market. While it’s difficult to gauge the accuracy of the indicator, Bitcoin price and volume have been relatively flat as the price is basically pinned between $9,900-$11,200.
BTC/USDT daily chart. Source: TradingView
As the daily chart shows, since Sept. 18 Bitcoin price has bounced between the trendlines of the symmetrical triangle and if the compression continues investors will start to look for a decisive move to occur in the coming week.
In the event that the price drops from the symmetrical triangle the volume profile visible range (VPVR) shows buying interest from $9,950 to $9,200 and looking back to Sept. 3 through Sept. 10 bulls consistently purchased dips below $10,000.
As mentioned in a previous analysis, for the moment it seems that traders are waiting on Bitcoin price to make a stronger move above $11,500 or below $9,800 before becoming more engaged with the market.
DeFi tokens fall flat as Bitcoin price consolidates
While Bitcoin price has held a relatively stable range, DeFi tokens appear to have lost their bullish momentum.
At the time of writing CoinGecko’s Top 100 DeFi Coins index shows that 45 of the 100 listed tokens have registered losses in the past 24-hours and Uniswap data shows volume has declined when compared to the $953 million record reached on Sept. 1.
Uniswap daily trading volume. Source: Uniswap
Even top DeFi darlings like Yearn.finance (YFI), Aave (LEND), and Chainlink (LINK) have corrected sharply in the last month and traders will note that YFI is currently down 43% from its all-time high at $44,000.
Some analysts have suggested that the profits and funds invested in DeFi protocols are steadily making their way back into Bitcoin but data is yet to support this narrative.
Bitcoin price daily performance. Source: Coin360
As Bitcoin and DeFi tokens search for momentum, altcoins managed to accrue marginal gains. At the time of writing, Ether (ETH) is up 0.50%, Binance Coin (BNB) has added 5.19%, and Cosmos (ATOM) rallied 8.39%.
According to CoinMarketCap, the overall cryptocurrency market cap now stands at $346.5 billion and Bitcoin’s dominance index is currently at 57.6%.
