- Bitcoin price surged to the highest level in over 12 months during the weekend.
- It breached its double-top level of $31,091 and then took a breather.
- DeFi tokens were among the top-performers during the weekend.
Bitcoin price had a strong performance during the weekend as it soared to a yearly high of $31,400. At its peak, the coin was up by over 101% above the lowest level in December. This means that BTC has outperformed key global indices like the Hang Seng, Nikkei 225, and Nasdaq 100 indices.
Bitcoin price rally takes a breather
Bitcoin and other cryptocurrencies had their best week this year as it soared by more than 20%. This rally happened as investors remained optimistic about cryptocurrencies after moves by companies like Blackrock, Invesco, and WisdomTree.
Jerome Powell, the Federal Reserve chairman, also sounded a bit bullish about cryptocurrencies when he talked about their staying power. Besides, Bitcoin has remained afloat despite key events like the collapse of FTX, Voyager Digital, and Terra.
Bitcoin did an important move during the weekend as it cruised above the important resistance point at $31,091. As I wrote here, this was an important level since it was the highest level this year. It was also the upper part of the double-top pattern. In price action analysis, this pattern is usually a bearish sign.
Still, Bitcoin buyers should be careful since this recovery could be a false breakout. Therefore, a move to $35,000 will be confirmed if the price moves above the weekend high of $31,409.
There are also risks to Bitcoin prices. First, there is a risk of regulations after the SEC sued Binance and Coinbase. And recently, Belgian authorities banned Binance from operating in the country. There is also the risk that oscillators like the Relative Strength Index (RSI) and the Stochastic have formed a bearish divergence pattern.
Read more: How to buy Bitcoin.
DeFi tokens rise
Meanwhile, Decentralized Finance (DeFi) tokens have defied gravity as volumes in these platforms rise. PancakeSwap’s CAKE price has jumped by over 7% in the past 24 hours. Similarly, Uniswap and Synthetix’s SNX tokens soared by over 6% in the same period.
Data compiled by CoinMarketCap shows that dYdX handled over $1 billion in cryptocurrencies, giving it a market share of 31%. Uniswap V3 on Ethereum handled over $552 million in crypto while on Arbitrum had $258 million. PancakeSwap on BNB Chain was over $83 million.
Meanwhile, ApeCoin price rose even as prices of Bored Ape Yacht Club tokens plunge after Machi Big Brother initiated a flurry of sales in the tokens.
Looking ahead, I suspect that Bitcoin and altcoin prices will consolidate this week as the remarkable rally takes a breather.
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