Crypto asset markets have been on the back foot all weekend as Bitcoin failed to hold gains above $11,000. A $10 billion slump occurred on Sunday, but things were starting to recover by Monday morning.
Total market capitalization for cryptocurrencies fell to just over $350 billion this weekend, however, they are still trading within their range bound channel which has held for most of this month. By Monday’s Asian trading session many of the major assets were recovering slightly, raising that figure to $354 billion.
Bitcoin struggles above $11k
Bitcoin has been the catalyst once again as the rest of the market, aside from a few DeFi tokens, has hopelessly shadowed it in terms of price action. BTC hit its highest price for over a fortnight on Saturday when it reached $11,150 according to Tradingview.com.
The momentum could not be sustained however and the next 24 hours saw it fall back to support at the 200 hour moving average at $10,760. Monday trading has seen Bitcoin return higher as it closes in on $11k once again.
Traders and analysts are growing increasingly bearish as Bitcoin fails to break through its resistance zones.
Fellow analyst, ‘CryptoHamster’ zoomed out to look at the bigger picture stating that things are still in an accumulation phase as they were during previous market cycles;
“Bitcoin long-term regression curve: technically, we are still in the accumulation phase. When the mean value level is broken, price goes parabolic again. Patience is the key.”
A weekly candle closing at $10,900 is still positive though, but Bitcoin must break resistance soon to prevent another large selloff.
Elsewhere on crypto markets
As is often the case when Bitcoin retreats, the rest of the market follows. Ethereum has weakened back to the $375 level but remains bullish on the weekly and monthly time frames. Recent DeFi farming incentives such as Uniswap’s Ethereum based liquidity pools have been bullish for the world’s second-largest crypto asset.
Most high cap cryptocurrencies are retreating at the moment with bigger losses for Polkadot, Chainlink, Crypto.com Coin, Bitcoin SV, and Tezos.
Decentralized finance markets are approaching an all-time high in terms of total value locked which is now just shy of $10 billion according to Defipulse.com. Uniswap is the most popular platform with a market share of almost 20% and a TVL just below $2 billion.
Over the past 30 days DeFi TVL has surged 45% and since the beginning of this year, it is up a whopping 1330%.