Bitcoin reaches a 2-year high in new addresses created

BTCUSD daily chart

Key takeaways: Sell wall on Binance, that might prevent bitcoin going above 11k. Bitcoin reaching a 2-year high in new addresses created and how China might be behind it. DeFi tokens correction and what it means for Ether.

A 2,800 BTC sell wall on Binance increases the chance of a sell off and keeps Bitcoin price trapped below $11K, says Cole Garner, a well-known on-chain analyst. With Bitcoin price currently trading at $10,600, this is equivalent to a batch of sell orders worth $30 million on just one exchange. While it does not guarantee a market-wide pullback, it suggests that massive price growth is unlikely under such circumstances.

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Bitcoin has reached a two-year record increase in new addresses last week. This is mainly assigned to China launching a favourable marketing campaign praising crypto. Chinese authorities called cryptocurrency the best-performing asset of 2020, even though a ban from 2017 still remains in place, with transactions confined to over-the-counter.

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There is also bullish divergence on a Bitcoin number of new entities chart that demonstrates a spike in activity of new participants coming to the market, however we have not seen it being reflected in the price yet.

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On a daily chart Bitcoin price action has formed a triangle pattern, bouncing between support and resistance. As the range is narrowing, there is less room for price action, which usually means going sideways for some time and then facing an imminent breakout. Breaking to the upside, there is a resistance in this area, we call it a Golden pocket, it’s in between 61 and 65% on Fibonacci Retracement and bitcoin respects that level a lot. If it breaks to the downside, there is another range that bitcoin likes to linger around especially lately and it's between $10,100 and $9900.

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It seems like DeFi tokens are cooling down as Yearn,finance has lost 35% in the past 7 days, UniSwap is in a similar situation going down 34%, UMA decreased 31% in value, Aave 18% and LINK 11% in one week. This is an expected pull back after a rapid growth based mostly on hype in the past 4 months. The majority of DeFi projects are built on Ethereum, and despite DeFi-tokens correcting heavily lately, on-chain data suggest Ether is in the early stages of a bullish reversal.

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The number of addresses holding at least 0.01 Ether reached a new all-time high. This growth is largely driven by the DeFi sector. Ethereum wallet, MetaMask confirmed reaching over 1 million monthly active users, a number that has tripled since February. Crypto whales have also been accumulating Ether at the current princes, suggesting that they believe the altcoin is underpriced.

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