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Bitcoin breaks down the $11,600 resistance
Bitcoin breaks down the $11,600 resistance
Trading

Bitcoin breaks down the $11,600 resistance

By Federico Izzi - 20 Oct 2020

Chevron down

Bitcoin roars again today, with a leap that goes beyond 11,800 dollars, breaking down the resistance of the $11,600 that during the last week had repeatedly rejected the bullish attempts. 

Yesterday, this resistance was broken, causing the bears to trigger the cover-ups, pushing prices to test the 11,850 threshold, the highest level since September 2nd.

Bitcoin cancels the bearish movement that in the first week of September had seen prices collapse by more than 15% in a few hours. Bitcoin thus tries to outline the return of the bullish force. 

coin360 20201020
Source: COIN360.com

Most of the altcoins benefited from this movement in the last few hours, although not with the same intensity. 

Bitcoin today rises by more than 3.5%. Ethereum benefits but slows down the climb stopping at +1% attacking the $380 threshold.

Among the big names, to find a better performance than Bitcoin, it is necessary to go down to the 17th position where there is Stellar (XLM) which goes up by 5%. Ripple (XRP) goes up 3% and tries to regain the psychological threshold of 25 cents.

The best of the day is Dash which goes up 15%. Dash benefits from the implementation of the network that now allows converting Dash to ERC20 tokens, allowing it to be used in decentralized finance. 

The other two privacy coins are also doing very well: ZCash (ZEC) is up 7%, while Monero (XMR) is back to strengthen the increases that have been accompanying it over the last month, trying to win back the $130. 

Monero is among the three best since the beginning of September, with a jump of 75% and a 400% gain from the lows of March. 

On the opposite side, Aave (formerly LEND) drops by 16%. Synthetix Network (SNX) and Decentraland (MANA) fell by more than 8%. 

Capitalization is back above $366 billion. Bitcoin’s dominance returns to its highest level since last August, at 60%, with the market cap rising close to $220 billion, the highest level since September 2nd.

Volumes are rising again, over 85 billion dollars, with an increase of 30% in the last 24 hours. This is due in large part to Bitcoin’s trading volume of $1.6 billion in the last 24 hours. Ethereum remains low, with volume below the billion dollars. 

DeFiPulse 20201020

DeFi

DeFi remains above $11.2 billion, a level made possible thanks to the tokenization of bitcoin, which set new records with 161,000 tokenized BTC. The numbers of Ethereum also rose again with more than 8,730,000 ETH locked within decentralized finance projects.

Uniswap grows stronger with 2.75 billion dollars. Maker rises to just under 2 billion dollars, while WBTC to 1.6 billion dollars, which is the value of bitcoin on the Ethereum network using the ERC20 standard.

01 BTC 20201020
Bitcoin chart by Tradingview

Bitcoin (BTC) towards the $12,000 resistance

After having broken the $11,600 resistance, short-term purchases exploded, accompanying the prices of bitcoin to test the $11,850, the highest level since the beginning of September. 

This breakage causes operators to reallocate their holdings back into options. The next resistance is $12,000.

Downwards, there would only be a concern if prices were to return below $11,200, levels that are receding today. 

A rise above $11,800-11,900 would attract the test of the next resistance area where the first upward hedging levels are positioned with strategies that are being reformulated by options traders.

The positions of bitcoin are also confirmed by the open interest in options, which continues to grow, one step away from the historical record of September 24th. 

Open interest in futures rose to over $4.5 billion, the highest level since the beginning of September. CME’s open interest in futures contracts has risen to the highest level since the beginning of last month. 

Overall volume remains at high levels but not at the highs recorded at the beginning of September. Bitcoin derivatives see a return of interest and confidence.

02 ETH 20201020
Ethereum chart by Tradingview

Ethereum (ETH)

Ethereum remains caged in the side channel that has been accompanying price fluctuations since the beginning of September. Ethereum, although rising, struggles to break the $390 threshold, remaining in the $365-385 range

For Ethereum, it is necessary to leave the side channel as soon as possible, upwards over $390, accompanied by volumes.

Downwards, it is necessary not to break the threshold of 335-325 collars, which coincides with the bullish trendline that accompanies the upward trend and joins the lows of mid-March and passes through the rising lows between June, July and late September. 

 

Federico Izzi
Federico Izzi

Financial analyst and independent #trader – S.I.A.T. & Assob.it partner. He operates actively on stock and derivatives markets (futures and options) since 1997. A precursor of cyclic-volumetric analysis he is known for having identified the most important upward and downward movements in the financial markets of recent years. He participates annually as a speaker at the ITForum in Rimini since the 2010 edition and InvestingRoma and Napoli since the first edition of 2015. He is a guest and market expert on the "Trading Room" and "Market Driver" broadcasts of Class CNBC, Borsa Diretta.tv and on the evening news of Traderlink. Since July 2017 he is a permanent guest on LeFonti.TV, the only weekly national space dedicated to cryptocurrencies alongside the most important international experts in the field. He was interviewed as a cryptocurrency expert for Forbes Italia, Panorama, StartupItalia and DonnaModerna. He was recognized as the first Italian technical analyst to have published the first secular cyclic analysis on Bitcoin. Periodically publishes articles on ITForum News, Sole24Ore, MILANOFINANZA, TrendOnLine and Wall Street Italy. Federico Izzi is... "Zio Romolo".

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