Reasons why the overall crypto market going up
The overall crypto market performs well over the weekend. The rise of the bitcoin price is mainly driven by DeFi craze.
The Sushiswap founder Chef Nomi has returned $14M worth of ETH back to the project fund. This will increase confidence in Decentralized Exchanges and help relieve the downtrend of Sushi token. Now the price moves in a horizontal channel.
Facing the threat of decentralized exchanges, Binance moved swiftly and is building a decentralized finance ecosystem around its own blockchain. Binance is establishing a $100 million USD seed fund to empower emerging projects built on its Binance Smart Chain. Its chain ecosystem will support the farming of mainstream tokens such as XRP, LTC and DOT. It was one of the reasons that ignited the crypto market.
According to Coinmarketcap, at the time of writing, Binance token (BNB) is up 21.63% over the last 24 hours and 63.68% over the last 7 days. Polkadot is up 17.00% over the last 24 hours and 24.44% over the last 7 days. Ethereum is up 4.91% over the last 24 hours and 16.66% over the last 7 days. Another DeFi token yearn.finance (YFI) continues its craze which is up 7.56% over the last 24 hours and 94.19% over the last 7 days.
However, we noticed that at 11 am today, the BNB surged but had a much higher trade volume which indicated the rise can not last long. If there are no alternative driving forces, the whole crypto market correction may occur soon.
Bitcoin price analysis
Bitcoin is pull up by the rise of the overall crypto market. Bitcoin price is up 1.90% over the last 24 hours and 3.53% over the last 7 days. As analyzed before, the bitcoin price fluctuates in a horizontal channel since its crash. The bitcoin highest price is at $10,627 on the following day after it plunged at Step. 3. Bitcoin seems to break above the horizontal channel today. The resistance line of the horizontal channel is around $10,400. To confirm the uptrend of a small scale, it needs to meet 2 requirements: the bitcoin needs to exceed its highest price since the crash; the upper line of the horizontal channel becoming a support line needs to be tested.w
We can hardly say the bull market is coming back. In contract, the risking of correction is increasing, which would pull the bitcoin price back in the horizontal channel.
In addition, the failed second economic stimulus bill indicated the lack of money supply in the market which has not been fully reflected in the stock and crypto market yet.