Psychological test for Bitcoin and overall crypto market
August 10, 2020 @ 15:29 +03:00
Bitcoin is close to another significant psychological and technical level of $12K. Bitcoin already touched this price on Monday morning, but faced resistance and moderately declined. Nevertheless, the bulls’ intentions are quite clear, as the coin remains near the threshold, gathering strength for a new attempt. An essential level of support for Bitcoin is $10,500. The complicated global financial, geopolitical, and epidemiological situation contributes to the intensifying movement of assets targeted by investors for diversification. Demand for precious metals is also a reflection of this global process.
The Block data showed that bitcoin is still one of the most popular digital currencies in the Darknet. Shadow internet demand remains a crucial fundamental factor in supporting bitcoin, as it is used as a means of p2p payments. Predictably, the anonymous Monero (XMR) is also popular.
The largest 100 cryptocurrencies can show quite significant price fluctuations, but if you look at the total capitalization of the crypto market, you can see a positive shift. Over the last month, the total capitalization of the cryptocurrencies has increased by almost $100 billion to $365 billion. Digital currencies are currently going through an important stage, as last year’s summer rally exhausted its momentum at this level. On the other side, the 2017 rally at this capitalization level was on the way to historical highs.
One of the main stars of the crypto market was the Chainlink (LINK) coin, which rose by 62% during the last week. Its technological relevance explains the success of the project to the market. Chainlink is the “link” between the payment systems and blockchains. Once again, we are talking about decentralized financial applications (DeFi). This rapid price increase was also due to a short squeeze in the futures market.
Ethereum, which is now also growing on the wave of DeFi’s popularity, continues to show serious intentions regarding the launch of ETH 2.0, offering hackers a $5K reward to hack the protocol of the second version successfully. Security is one of the fundamental vulnerabilities that prevent blockchains from conquering the global financial market. After a series of hackings and billions of dollars in losses, a new rally in the crypto market can stop because of security problems, if DeFI applications continue to prove vulnerable to hackers.
The FxPro Analyst Team