The price of Bitcoin hit a new record but $70,000 was still too much of a resistance. At the same time, Bitcoin’s dominance took a slight downturn. Litecoin has performed best out of the top altcoins this week. Surprisingly, the DeFi sector did not break new records.
The price of Bitcoin hit a new ATH
The price of Bitcoin is currently about $66,000. A week ago, the price was about $2,000 higher and had just hit a new ATH. The record price was followed by three days of downslide resulting in a fall to nearly $62,000.
The graph below shows the price development of Bitcoin from the end of July. One candle represents one day. The blue line is the 50-day moving average and the turquoise line is the 200-day moving average.
Bitcoin’s price was in a really interesting situation last week. It looked like the $70,000 mark could be broken any moment. Unfortunately, there weren’t enough buyers in the market. The reversal in price coincided with the stock market. The S&P 500 index, which describes the overall situation of U.S. companies, fell at the same time.
Bitcoin has now changed the previous resistance into support. This is great for price development in the long run.
Many investors are following Plan B’s comments and analyses with great interest. The developer of the super-popular Stock-To-Flow model has predicted that the price of Bitcoin would reach $98,000 at the end of November. There are now two weeks left in November. If Plan B is to be believed, there will be a really wild price rally coming.
The analyst himself still has faith in his predictions.
$98K Nov and $135K Dec prediction still in play pic.twitter.com/Df9CsxTdEj
— PlanB (@100trillionUSD) November 14, 2021
It’s also worth checking out this tweet about Bitcoin’s possible closing price at the end of this cycle.
There are no major changes in the on-chain data. The number of Bitcoins on exchanges is still low, and large investors are not interested in trading at such price levels.
Right now, the traffic in the Bitcoin network is low. During price peaks, a lot of traffic is seen in the blockchain. This is because whales sell their holdings and small investors rush to buy. Everyone is moving coins back and forth. So far, this FOMO traffic has not appeared.
In our opinion, the information available does not suggest that the ongoing rally is ending. However, some investors have begun to fear a possible Double Top forming, which would be a sign that the current trend is changing.
The upcoming week is extremely important for the rest of the year. Will Bitcoin manage to break the $70,000 mark, or will the price come down like in September? If the price doesn’t go up soon, it starts to break the Stock-To-Flow model forecasts.
Bitcoin’s dominance remains nearly unchanged
At the time of writing, Bitcoin’s dominance is 43.45 percent. This is slightly lower than last week’s 44%. There has been no clear trend recently, which makes it difficult to predict the development of the dominance.
A week ago, it seemed that the market was starting to go up. The move was due to Bitcoin’s swift price increase. Bitcoin’s market dominance increased by almost two percentage points in a few days. However, the trend reversed quickly.
We still believe that the market move higher will led by Bitcoin. Some analysts, on the other hand, believe that Bitcoin’s dominance will drop all the way to the 20-25% level in the coming weeks. We just have to wait and see what happens.
Litecoin has performed excellently
The dominance of Bitcoin has remained stable while the largest altcoins have stagnated compared to Bitcoin. Below you can see the development of the fifteen largest altcoins compared to Bitcoin.
The best-performing altcoin has been Litecoin, also known as “Bitcoin’s Little Brother”. This ten-year-old altcoin has risen over 30 percent compared to Bitcoin. There is no one significant news behind this move.
A week ago, AMC announced that it would enable cryptocurrency payments in the future. One of the possible payment options is Litecoin. This may have contributed to Litecoin’s price jump. Litecoin also gained momentum in terms of technical analysis, as its price broke strong resistance levels.
If the rest of the year is carried forward under Bitcoin’s leadership, Litecoin might also benefit. In the long term, however, we do not feel that Litecoin is a particularly good investment. It has lost a lot of ground in the crypto rankings over the past years.
Looking at the list of the thirty largest altcoins, the absolute winner is Crypto.com’s CRO token. The price of CRO has risen by more than 40 percent in just one week. Compared to Bitcoin, there has been an increase of more than 19 percent.
The DeFi sector did not break a new record!
The DeFi sector has not broken a new record! This is quite a surprise since the TVL of the DeFi market has grown week after week. TVL measures how much value is locked into DeFi protocols in U.S. dollar terms.
Although no record was broken, there hasn’t been a significant decline either. Today’s TVL is $274.48 billion. This is only about $1 billion less than a week ago week. You can check the current TVL at defillama.com
The DeFi sector has developed at a tremendous speed in recent months. The combined TVL of DeFi protocols is more than 50 percent higher than it was at the peak of the spring boom.
This sector is attracting more and more liquidity, but investors are not interested in DeFi tokens at the moment. Uniswap has already fallen out of the top 15 cryptocurrencies. The lending platform Aave is ranked 48th – it used to be also a top 15 coin six months ago.
At the protocol level, the DeFi market looks like this.
Nothing interesting has happened on this list since last week. Curve, in the first place, broke the $20 billion threshold a few weeks ago. MakerDAO is also very close to the $20 billion mark.
There are no major changes in the blockchain ranking either.
Ronin is an interesting newcomer in 11th place. This is a DeFi protocol with a decentralized exchange Katana DEX.
Katana DEX is specially made for Axie Infinity game. You can trade game-related tokens there. Katana has only been in operation for 10 days, but it has already raised $1.5 billion in liquidity. You can read more about Katana from here.