Cryptocurrencies

Bitcoin (BTC) on September 20, 2020

Bitcoin, the ugly duckling of traditional finance

Bitcoin (BTC) has been trading in the $ 9,800 – $ 11,130 area for a week now. BTC still has 10 days to absorb the current monthly red candlestick, rising above $ 11,670. On the menu for our daily Bitcoin price analysis for today, September 20, 2020: the 2 challenges of BTC – one is positive, the other is to be noted.


The DeFi of 1 BTC

Bitcoin has drifted down below $ 11,000 today, and is trading at $ 10,867 as of this writing.

This drop is accompanied by a drop in HODlant 1 wallets BTC, which hit a 4-month low today.

This fall coincides with the explosion of the Total Value Locked (TVL) of DeFi and the increase in demand for wBTC.

On September 18, data from Skew indicate that the value of wBTC is experiencing strong growth, and is approaching a billion dollars.

Skew explosion wBTC

Source : Image via Twitter

According to CoinMarketCap, number of wBTC in circulation currently stands at 76,047 BTC.

Of Bitcoiners have probably converted their BTC in wBTC in order to be able to take advantage of DeFi platforms based on Ethereum (ETH), without having to sell their BTC, while benefiting from an increase in the price of the latter. The value of 1 wBTC corresponds to 1 BTC.

The significant drop in the number of wallets holding 1 BTC so is not necessarily a bearish sign for Bitcoin on the long term.

This indicator could even be interpreted as positive for Bitcoin ; Bitcoiners are reluctant to part with their BTC and miss out on a bullish rally even to take advantage of DeFi.

The same challenge for this week

Bitcoin closed in the green the trading week of September 13, 2020, at around 11,100 USD.

The BTC was unable to significantly break resistance at USD 11,100 during this just-closed week.

Bitcoin therefore begins this new week with currently a red daily candlestick and, will have to meet again the challenge of 11,100 – 11,300 USD to be able to claim the 12,000 USD.

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

If you are an avid reader of Cryptocurrencies, you may have noticed in our recent daily BTC articles that the market is currently exposed to the Whale movement which can either spike its price or cause its collapse. The FED and its nonsense are the best medium for BTC today. New trading week, new bets opened on Bitcoin!

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