Bitcoin Bears Claim Dominance as Total DeFi-Locked BTC Sinks
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Bitcoin (BTC) appears to be giving in to pressure from bears, as sellers take dominance amid the immense volatility in the market. Although trading volume is up by about 16% ($60.9B) over the past 24 hours, the price of BTC remains defeated at the $58k area.
Despite several attempts, bulls have been unable to get the benchmark cryptocurrency past the $60k psychological resistance as sell-off continues in the market. The highly-coveted $60k mark could remain elusive in the short-term because of insufficient trading volume in the market.
Meanwhile, the depressed state of Bitcoin could also be traced to the drop in the total number of BTC locked in Decentralized Finance (DeFi) smart contracts. DeFiPulse reports that there are 139,318,000 BTC locked in dApps, at press time.
This number has been on a rapid decline over the past month. As of March 4, the total Bitcoin locked in smart contracts peaked at 154k BTC, a whopping 15k BTC drop. There are likely two reasons for this drawdown: pullout of funds to cash out profits and transfer of funds to cold storage. That said, given the drop in influx of BTC into exchanges over the past month, the latter is likely the reason for the decline in DeFi-locked Bitcoins.
Although the effect of this decline is negative for BTC short-term prospects, the long-term impact could be very positive for the primary cryptocurrency.
Key BTC Levels to Watch — April 4
Following its sharp rejection from the $60k resistance, Bitcoin fell to the $56,700 support and rebounded. At press time, the cryptocurrency has ventured back into the crucial $58k – $60k pivot zone and will likely continue on this path to the highly-coveted $60k resistance once again.
However, BTC has to break the $58,500 level in the coming hours or risk stalling and falling towards the $57k area.
Meanwhile, our resistance levels are at $58,500, $59,000, and $60,000, and our key support levels are at $57,00, $56,700, and $55,000.
Total Market Capitalization: $1.92 trillion
Bitcoin Market Capitalization: $1.80 trillion
Bitcoin Dominance: 56.6%
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