Bitcoin has doggedly recovered to a historical level of resistance this morning following a prolonged period of consolidation in the $10,000 region.
eToro market analyst Simon Peters believes that while market sentiment isn’t as positive as it once was, the recent recovery shows a level of market maturity.
Peters said: “Despite the drops we saw throughout last week, we failed to see a close below $10,000 and although the sentiment in the community is clearly not overly bullish, I would say that it remains relatively neutral. That doesn’t always make for the most interesting story, but it does show a certain level of maturity in the sector.
“Despite the discussed sub-$10,000 drops, bitcoin’s on-chain metrics continue to be bullish: the hashrate remains at an all-time high; Glassnode data shows that the percentage of bitcoin that hasn’t moved in over three years is at a two-year high of 30.9%; and Bytetree figures on the Miners Rolling Inventory, which measures the inventory held by miners, shows that they are hoarding bitcoin.”
Bitcoin has bounced back resiliently after it failed to break above $12,500 in August, leading to a six week correction while altcoins began to recover in light of the DeFi boom.
Market analyst David Derhy predicts that popular altcoin TRX will likely rally after this Wednesday after the issuance of SUN tokens,.
“Wednesday’s release date could spark further price rises from TRX, with those that haven’t yet participated in the SUN token genesis mining rushing to join for fear of missing out on the issuance.” Derhy added.
He does, however, acknowledge that the DeFi sector may be a bubble and that while it has room to grow, it does have a number of similarities with the 2017 ICO boom that eventually burst in 2018.
For more news, guides and cryptocurrency analysis, click here.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.