Market Wrap: Bitcoin Climbs to $11.5K With Record Amount in DeFi

Bitcoin bounced back from Thursday’s drop at a time when more of the cryptocurrency is locked in DeFi than ever before.

  • Bitcoin (BTC) trading around $11,511 as of 20:00 UTC (4 p.m. ET). Gaining 2.2% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $11,231-$11,552
  • BTC above its 10-day and 50-day moving averages, a bullish signal for market technicians.

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Bitcoin trading on Coinbase since August 26.
Source: TradingView

Bitcoin’s price trended upward Friday, going as high as $11,552 on spot exchanges such as Coinbase. “Bitcoin has rotated around the most traded price at $11,500,” said Daniel Koehler, liquidity manager at cryptocurrency exchange OKCoin. “Looking down, the next significant support levels are $10,800 and $10,550.”

Read More: Bitcoin, Gold Recover After Jerome Powell Speech Shakes Markets

Jean Baptiste Pavageau, partner at quant trading firm ExoAlpha, says bitcoin’s recovery after gyrating $450 on Federal Reserve Chair Jerome Powell’s comments Thursday continues a larger bullish cycle started earlier in the summer.

“After its recent fake breakout above the $12,000 resistance level, bitcoin saw a short-term trend reversal in its broader bullish trend started in June,” said Pavageau. “On the long term the Fed’s comments are very positive for bitcoin and the crypto markets as a safe heaven because of their limited supply.”

For 2020, bitcoin is up 60% while gold is up almost 30%. Investors often refer to both as safe haven assets.

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Bitcoin (orange) versus gold (yellow) since Jan. 1, 2020.
Source: TradingView

On the derivatives side, the market saw lots of expirations Friday, with over $740 million in bitcoin options expired on the Deribit platform alone. The expirations were expected to induce some volatility; instead, bitcoin’s price steadily trended upward during the day.

“There’s still an element of absorbing what has happened recently in the DeFi markets and the situation after Powell’s statement,” said Chris…

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