Market Wrap: Bitcoin Tumbles to $9.8K; Investors Continue Plowing Crypto Into DeFi

Bitcoin is in bear territory for the third straight day and investors are still looking to DeFi to capture gains during the dump.

  • Bitcoin (BTC) trading around $10,606 as of 20:00 UTC (4 p.m. ET). Slipping 0.90% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $9,894-$10,081
  • BTC below its 10-day and 50-day moving averages, a bearish signal for market technicians.

bitcointradesep4
Bitcoin trading on Coinbase since September 2.
Source: TradingView

Bitcoin’s price dropped below $10,000 Friday, sliding as low as $9,894 on spot exchanges such as Coinbase.

“It’s not the best look for BTC from a momentum and positive volume standpoint, to be honest,” said Constantine Kogan, partner at crypto fund of funds BitBull Capital.

Read More: V-Shaped Recovery From Bitcoin’s Biggest Drop Since March Unlikely

David Lifchitz, chief investment officer for crypto quantitative firm ExoAlpha, says traders are taking profit after bitcoin could not get past $12,100. It may seem like a long time ago but the price went as high as $12,058 only Tuesday.

“It looks like some bitcoin holders decided that this last failed breakout was one too many,” he told CoinDesk. “A full move could potentially bring the price back toward $9,500.

btcweeksep4
Bitcoin trading on Coinbase the past week.
Source: TradingView

Lifchitz added that a few more fundamental factors that might be influencing the bearish bitcoin run.

“We observed that the market started to fade as South Korea’s largest exchange, Bithumb, had been raided by police,” he noted.

Read More: Police Reportedly Raid Headquarters of Bithumb

“It could also be miners deciding to monetize their rewards,” Lifchitz added. Indeed, bitcoin holders, which could include larger holders such as miners, are pushing more inflows into exchanges to its highest levels since late July.

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Total bitcoin transfer volume into exchanges the past three months.
Source: Glassnode

“In my opinion, this is a classic case of an overstretched market, which had advanced too…

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