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Bitcoin traders are hitting the sell button. On Ethereum, DeFi is raising commissions again.
Bitcoin was trading as low as $ 11,613 on Tuesday. Traders continued to sell the world’s oldest cryptocurrency after hitting a 2020 high of $ 12,485 on Monday. For the moment, he may have a hard time getting over that.
“Too much resistance at $ 12,000,” said over-the-counter cryptocurrency trader Alessandro Andreotti. “So he’s going to go sideways for a while.”
Katie Stockton, an analyst at Fairlead Strategies, expects a weaker bitcoin market. “There are signs of short-term bullish exhaustion in support of today’s retreat continuing into the next week or two,” Stockton said. Traders in the bitcoin options market don’t expect too drastic a pullback, however, as most strikes exceed $ 10,000.
Many traders remain bullish despite the recent drop in prices, seeing the decline as a respite before climbing. “Last year’s high was $ 13,852,” noted Rupert Douglas of institutional cryptocurrency broker Koine. “We will test it, but if we get a significant pullback to around $ 10,000 first it’s a tough call,” Douglas added.
First he needs to get over the $ 12,000 hurdle and traders like Andreotti see that level as anything that stands in the way of a return to bullish territory. “I believe that in the next attempt to break $ 12,000 we could have the next major support up to $ 13,500,” added Andreotti.
The second largest cryptocurrency by market cap, ether (ETH), fell Wednesday, trading around $ 398 and slipping 5.8% in 24 hours at 20:00 UTC (16:00 ET).
After jumping to an all-time high of $ 6.68 on August 13, Ethereum’s fees briefly dropped below $ 3. However, they are now up again, currently at $ 3.59, according to data from the Glassnode aggregator. Fees are required for making transactions on the network, including trading on decentralized exchanges or DEX.
Peter Chan, a trader at OneBit Quant company, says network commission costs, also known as gas, are problematic for Ethereum’s DeFi market. “Everyone at DeFi was all over the place, including us, for the past two days because of the insane cost of gas,” he said. The downtrend in the market, as well as fees, is problematic for the ecosystem’s cryptocurrencies, Chan told CoinDesk. “DeFi coins are getting worse now.”
Digital assets on CoinDesk 20 are mostly on Red Wednesday. A notable winner at 8pm UTC (4pm ET):
Notable Losers at 20:00 UTC (16:00 ET):
