Bitcoin is up 15% and index shows extreme greed, ETH spiked 40% and miners profit rises 60% as the hype around DeFi increase network activities
BTC/USD daily chart
Yesterday, Bitcoin price spiked 15% and reached $11,400 after breaking out of the triangle pattern to the upside. This is the highest price Bitcoin has seen so far this year. The last time Bitcoin traded at this price level was in August 2019. Today we are experiencing a 5% correction which is expected after such a parabolic run. BTC reached overbought territory on the daily Relative Strength Index(RSI) aided by a massive influx of volume.
The Fear and Greed Index changed from last week’s Fear to Extreme Greed. Since the Covid-19 pandemic hit the world, the index reflected only Fear and Extreme Fear resembling great uncertainty in global markets.
ETH/USD daily chart
Similar to Bitcoin, Ethereum is also on the rise. Over the past seven days we have seen ETH appreciate by almost 40%. Just like Bitcoin, ETH is currently experiencing a minor correction. It found support at the 78,6% level on the Fibonacci Retracement scale. Bollinger Bands stretched immensely and will attempt to squeeze the price into a narrower range again. The growth was again propelled by significant volume, reaching a level of 80 on the Relative-Strength-Index(RSI).
Ethereum miners have had an even better time, as their daily income has increased over 60%. According to data tracked by Sparkpool, the profitability of Ether miners went up from $1.85 to $3.27 in comparison to previous months. The reason behind the growth can be largely attributed to the hype around DeFi that has caused network activities and transaction fees to reach a two year high.