Technical analysis

Volatility at its lowest on Bitcoin, DeFi continues to lead the market

Julien Moretto – 22 Jul 2020

It is now an “Alt Season” which has been established for several weeks on the crypto market. Bitcoin’s volatility has reached historic lows, with a price “stuck” between $9,000 and $10,000 since the beginning of May and trading at €8,100 ($9350) on July 22, almost stable over a week. At the same time, less capitalized cryptos have delivered impressive monthly or weekly performances. Among them stand out projects linked to decentralised finance (DeFi). For example, Chainlink (LINK) achieves +65% over one month, Aave (LEND) +90% and Synthetix (SNX) +143%.

As a result, capital and volumes are pouring into these projects, to the detriment of top market values such as Bitcoin and Ethereum. But beware, markets remain cyclical and no trend lasts forever. This extreme contraction in volatility on Bitcoin will eventually explode into a strong trend movement. And when the price of Bitcoin starts to fluctuate sharply again, it is very likely that the performance currently observed in the DeFi sector will no longer be the same. We analyze for you the price levels of Bitcoin that could trigger the next trend movement, as well as future buying opportunities on DeFi tokens.

  • According to CoinGecko, Market capitalization is up slightly to $281 billion from $277 billion last week.
  • Bitcoin’s dominance remains stable at 61.1% this week, but remains in a bearish trend over the past few months
  • The best performance of the top 50 is to be attributed to Aave (LEND) with +32% over the week.

We invite you to discover our full analysis in video, recorded on july 21, in french:

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