Welcome to another edition of Qume Market Mondays!
Crypto
Bitcoin’s resistance at $12,500, bulls are waiting, is a price pull-back
expected?
Bitcoin rallied early last weekend, touching the $12,500 mark in future perpetual markets, after which it pulled back to $11,800 price levels on Tuesday, failing to break the resistance at $12,500. It is now trading at $11,600+ price levels.
Mining profitability of bitcoin has been increasing in August. This is usually a bullish indicator.
An elevated level of bitcoin volatility implies that bitcoin option prices are to rise which is bullish. 3-month daily implied volatility now rests at 3.9%, up from 3.6% last week.
With hard resistance at $12,500, we expect bitcoin to rally to $13,000 price levels if the resistance is broken this week or the week after.
Ether’s rally is too strong for its own good?
Ether is down $13 from last week, as a result rising gas prices on the Ethereum network.
With rising traffic on DeFi platforms rising gas prices have been the major roadblock for small yield farmers. Some these participants may move to alternatives if the networks fee keep on rising.
DeFi
As the DeFi markets continue to grow, the total value locked up in Defi is about to cross the $7.5bn mark. There have been some innovative developments in the DeFi protocols.
Aave, now the second biggest (followed my Maker) DeFi platform with $1.35B worth of assets locked in had introduced the option for those users who have locked up funds on Aave, but they aren’t borrowing against the collateral. They can simply delegate their credit line to a trusted third party in return of a cut of the interest. This is the first in the crypto markets.
Holders of Bitcoin are pushing bitcoin into DeFi at an increasingly rapid rate. Almost 50,000 BTC is now locked in DeFi protocols, it could be a bullish signal for DeFi as investors’ confidence in Bitcoin’s prominence strengthens.
India steps on the gas to curb Chinese activity in the nation.
India’s Ministry of External Affairs has been told the visas for specific groups of Chinese nationals such as businessmen, academics, industry experts and advocacy groups will require prior security clearance. This is a step to turn down the level of Chinese activity in Indian markets and it is the same international travels rules with which India deals with its arch-rival Pakistan.
India has also changed rules to limit Chinese investments in Indian companies.
USA
S&P 500 registered weekly gains after a downturn on 20th of August when it fell to 3,360. After which it rallied to 3385.51 levels, up 17 points from last week close.
Apple’s meteoric rise
Apple just became the first company to be worth $2 trillion. Its value has
doubled in just two years to reach that mark. This comes after Apple announced good results for its last quarter and company’s official say that as work from home culture continues they are likely to see similar results in the upcoming quarters.
Data Sourced from www.skew.com, www.defipulse.com
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