Bitcoin

Will the price of ether reach $ 400 if DeFi continues to eat Bitcoin?

Not a day goes by when someone tells you about decentralized finance (DeFi). It is promoted as bigger that the altcoins boom of 2017, and when things are observed like Tether’s monstrous market cap, The recent price hike for Chainlink and the DeFi Celsius platform recently exceeded cryptocurrency deposits of over $ 1 billion. These are clearly substantiated claims.

However, The only problem that this may pose for Bitcoin is the value proposition for wealthy individuals and institutions that are considering entering the room.

Earn up to 8% in USDT in one year or lose 11% in Bitcoin in one day?

Will the price of ether reach $ 400 if DeFi continues to eat Bitcoin?
Will the price of ether reach $ 400 if DeFi continues to eat Bitcoin?

Daily performance of the cryptocurrency market

Daily performance of the cryptocurrency market. Source: Coin360.com

Bitcoin is trading at the top

BTC / USD 1-day chart

BTC / USD 1-day chart. Source: TradingView

Use the 1-day BTC chart It is clear that we are still in a descending pattern that is dangerously close to the top of a channel. The current price is approx. $ 9,150 and the resistance $ 9,270.

This brings the mid-level support to $ 8,750 and the lower channel support to $ 8,200. propose to potential buyers Bitcoin that a 11% drop in channel support is a potential scenario.

I don’t know about you, but when You have the option to lose 11% in one day, while earning 8% in one year on a DeFi platform. the risk against the reward, especially for institutions manage third-party portfoliosThe latter It certainly seems to be the safest bet.

But, What about the same opinion about the world’s second largest currency by market cap, namely ether? Your blockchain houses many of these so-called DeFi projects who have received a lot of attention lately.

The rise of the Phoenix

ETH / USD 1-day chart

ETH / USD 1-day chart. Source: TradingView

Relatively Ether (ETH) appears to be trading on the daily chart at the end of its currently rising channel. In other words, paint a picture 50% up and 3% down.

Meanwhile it’s just a view and not a guarantee of what will happen in the near future, tell me that Etheruems token could prepare for its return.

Despite all the FUD and the controversy You can also read about it on Twitter of the delays of Ethereum 2.0 and one of its co-founders who want to part with it. However, You can’t deny that Ethereum has become as important in the cryptocurrency space as Bitcoin.

Without Ethereum, you wouldn’t have most DeFi platforms, smart contracts, or altcoins that could bring you crazy returns if you chose the right one, including the Marines’ beloved Chainlink (LINK).

Fibonacci weekly for ether

ETH / USD 1 week chart

ETH / USD 1 week chart. Source: TradingView

In the technical analysis last week I looked at the Bitcoin Fibonacci. Bitcoin’s price has not changed significantly since it is still at 0.382 Fib.

For Ether, however, all price promotions occur on its current channel below 0.236. This would bring ETH / USD close to USD 400 when it reaches the first Fibonacci level.

Also, That doesn’t even bring Ether’s price closer to Bitcoin’s current pullback levels. If the ETH approached 0.382 fib, we would see a gain of 150% in the second largest cryptocurrency in space.

Then the question is Will Ethereum begin to outperform Bitcoin in the near future?

If so, what happens to all old coins in combination with ETH and the subsequent winnings that people only accept in ETH pairs? What effect would you expect in space? It looks like 2017 again and an attractive third option for investors.

  1. DeFi interest rate growth
  2. Possible loss of 11% when buying Bitcoin
  3. 150% profit on the global computer Ethereum?

Bitcoin has long been touted as a safe haven and store of value. However, DeFi offers alternative investment opportunities. and although maybe a token like Chainlink could lead the next bull run do not forget that paired assets are the ships that will rise with the tide Which places Ether in a prime position for a comeback.

The bullish scenario for Bitcoin

1 hour BTC / USD pair table

1-hour chart of the BTC / USD pair. Source: trade view

If you look at Bitcoin on the hourly chart, For Bitcoin bulls, it’s important to break above $ 0.618 of $ 9,300 to break out of the current downturn. The price has been declined from $ 0.382 to $ 9,200 in the last 24 hours, so at this moment all eyes are on this narrow area.

Once you’re outside of this range, it’s crucial to break through the current $ 9,500 fiber pattern to see again The multi-year resistance of $ 10,500 is being questioned again.

The bearish scenario for Bitcoin

I see a lot of support around $ 8,900 on the daily chart. From now on, begins opening $ 7,800 as the next potential Fibonacci target for support.

1-day BTC / USD pair chart

1-day chart of the BTC / USD pair. Source: trade view

You’ll find channel support between $ 8,750 and $ 8,350 along the way before looking down at these goals.

1-day BTC / USD daily chart

Daily chart of the 1-day BTC / USD pair. Source: Tensorcharts

However, if $ 8,200 is lost, I expect a very rapid drop to $ 7,000 as the Binance order book heat map does not include significant buy orders below $ 8,500.

The views and opinions expressed here are solely those of @official and do not necessarily reflect Cointelegraph’s views. Every step of investment and trading involves risks. You have to do your own research when making a decision.

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