On Saturday, the price of Bitcoin (BTC) and Ether (ETH) cheered up when BTC briefly topped $ 9,700 and Ether set a 2020 high of $ 309.
The weekend increase is a surprise, as weekends are often marked by low trading volume and some traders avoid the markets due to the volatility that sometimes accompanies the weekly close.
Crypto market weekly price chart. Source: Coin360
The technicalities aside, Ether’s rapid rise to $ 309 could also be receiving an increase in sentiment from the news that the total value of funds locked on decentralized financial platforms (DeFi) reached $ 4 billion. today.
Total value blocked (USD) in DeFi. Source: DeFi Pulse
Currently, the top three DeFi platforms are Maker Aave and Compound, each with $ 875 million, $ 639 million and $ 616 million locked on a variety of contracts.
DeFi Pulse data shows that the decentralized financial sector has grown tremendously in 2020 as the blocked value at the beginning of the year was slightly less than $ 1 billion.
As discussed in a previous market update, Ether’s was expected to advance towards the $ 317 level if the Feb. 14, 2020 high cleared to $ 288.32 and Saturday’s recovery to $ 309 dropped just $ 8 before surpassing the resistance group which extended to $ 317.
Ether daily price chart. Source: Coin360
After a recovery of almost 30% this week, a consolidation period is to be expected, but if the bulls are renewed or Bitcoin is recovering at the weekly close, there is a possibility that the price could exceed $ 317 and the Absence of general resistance could see the bulls target the 2019 high at $ 367.
Bitcoin approaches key resistance
When Ether rose to a new high in 2020, Bitcoin’s price rose to $ 9,733. Traders are now watching closely to see if the top-ranked digital asset on CoinMarketCap can break above the $ 9,900 level as this would place the price above the long-term downtrend line from the all-time high of 2017.
According to Cointelegraph contributor Michael van de Poppe: “A major parabolic move is unlikely to occur as soon as the price has some untested levels above it, namely $ 9,900 and $ 10,100.”
Van de Poppe further explained that:
“The most likely scenario would be a ‘ladder’ pattern where the price of Bitcoin rises towards the resistance zone, rejects and then successfully tests the previous resistance zone for support. Next, the price movement is likely to accelerate up once Bitcoin breaks above the $ 10,100 high. ”
As of this writing, Bitcoin’s price has slightly withdrawn from the daily high of $ 9,733, but the daily chart shows that the digital asset continues to reach higher highs and lows and the price remains above the 20 moving average. days.
Bitcoin daily price chart. Source: Coin360
As Bitcoin and Ether rose, various alternative currencies also made significant moves.
Cardano (ADA) surprised investors with a strong upside move of 21% to $ 0.1457, Binance Coin (BNB) also continued to rebound with a gain of 5%. Litecoin (LTC) followed Bitcoin with a 12.88% move to $ 49.47.
According to CoinMarketCap, the total capitalization of the cryptocurrency market is now $ 294.6 billion. Bitcoin’s domain rate currently at 60.5%.
