{"id":172773,"date":"2021-02-07T14:00:00","date_gmt":"2021-02-07T11:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/major-correction-for-defi-as-bitcoin-rejected-again-above-40k-whats-next\/"},"modified":"2021-02-07T14:00:00","modified_gmt":"2021-02-07T11:00:00","slug":"major-correction-for-defi-as-bitcoin-rejected-again-above-40k-whats-next","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/major-correction-for-defi-as-bitcoin-rejected-again-above-40k-whats-next\/","title":{"rendered":"# Major correction for DeFi as Bitcoin rejected again above $40K: What\u2019s next?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a34d5ba93942\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a34d5ba93942\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/major-correction-for-defi-as-bitcoin-rejected-again-above-40k-whats-next\/#So_whats_next_for_the_DeFi_market\" >So what\u2019s next for the DeFi market?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/major-correction-for-defi-as-bitcoin-rejected-again-above-40k-whats-next\/#Can_Bitcoin_rally_to_a_new_all-time_high\" >Can Bitcoin rally to a new all-time high?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Major correction for DeFi as Bitcoin rejected again above $40K: What\u2019s next?  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>The decentralized finance or DeFi market saw a steep correction over the last 12 hours as Bitcoin (BTC) was unable to break the $41,000 level.<\/p>\n<p>Meanwhile, analysts say that the profits from major DeFi tokens are flowing back into Bitcoin, even though the DeFi market is still lagging behind despite BTC\u2019s recovery over the past week.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-02\/72f5fa14-9595-418b-a9d6-4fde8ad00b3b.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>1-hour candle DeFi index (Binance). Source: TradingView.com<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"So_whats_next_for_the_DeFi_market\"><\/span>So what\u2019s next for the DeFi market?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Both major bluechip DeFi tokens and small market cap cryptocurrencies are struggling to recover against Bitcoin over the weekend.<\/p>\n<p>Typical DeFi bluechip assets include the likes of Aave (AAVE), SushiSwap (SUSHI), Uniswap (UNI), Maker (MKR), Compound (COMP), and Synthetix (SNX). <\/p>\n<p>Major DeFi tokens with slightly smaller market caps include Alpha Finance (ALPHA), Yearn.finance (YFI), and 0x (ZRX).<\/p>\n<p>The primary reason behind the DeFi market\u2019s correction is that the profits from DeFi tokens were flowing into Bitcoin as BTC began to pull back.<\/p>\n<p>This trend amplified the selling pressure on DeFi tokens, particularly as the Bitcoin\/Ether (ETH) pair has seen short-term weakness in the past two days.<\/p>\n<p>However, the cryptocurrency market has been moving quickly and thus market dynamics could change rapidly over the next coming days, especially with the launch of CME Ether futures on Monday.<\/p>\n<p>At the same time, another DeFi rally could be sparked by the price of Bitcoin cleanly breaking above $40,000 this time and consolidating between $41,000 to $42,000, the all-time hig.\u00a0<\/p>\n<p>For this to materialize, Ether would have to catch up to Bitcoin and regain momentum above $1,700 in the short term. For now, ETH is trailing behind Bitcoin with the ETH\/BTC pair struggling to recover.<\/p>\n<p>Whether ETH reclaims $1,700 as a support area would likely be the key factor that decides the trajectory of the DeFi market in the foreseeable future.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-02\/82023ea4-c168-4791-a4e2-5df825f3b086.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>ETH\/BTC 1-hour candle price chart (Binance). Source: TradingView.com<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Can_Bitcoin_rally_to_a_new_all-time_high\"><\/span>Can Bitcoin rally to a new all-time high?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Puru Saxena, an investor and a retired money manager, said that if Bitcoin goes back above $40,000 again, it would invalidate the bearish scenario. He <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/saxena_puru\/status\/1358138336204869632\">said<\/a>:<\/p>\n<blockquote><p>\u201cBitcoin back above $40,000 and although it still hasn&#8217;t taken out its ATH, unlike the previous cycle, it hasn&#8217;t completely broken down either. If $BTC closes above its January high, that&#8217;ll mean my assessment of the price action was WRONG and the bulls were right.\u201d<\/p><\/blockquote>\n<p>Exchange heatmaps, especially the orderbook of Binance, show large sell walls at $41,000 and $42,000. As such, if Bitcoin reclaims $40,000 and makes its way towards $41,000, it would confirm that a bullish market structure is still intact.<\/p>\n<p>If Bitcoin regains strength and considering that the DeFi index has not broken its parabolic structure, a continuation of the rally is more probable than a steep correction.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">DEFI index so far looks like another pause in the longer term trend. Breaking curve would be worrying. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/WfmNTnTOq4\">pic.twitter.com\/WfmNTnTOq4<\/a><\/p>\n<p>\u2014 Alice (@AliceCrypt) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/AliceCrypt\/status\/1358234899551985664?ref_src=twsrc%5Etfw\">February 7, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Bluechip DeFi assets have already begun to recover back to the daily open on Feb. 7, with AAVE, SNX, and ALPHA showing strength.<\/p>\n<p>It would be crucial for the DeFi index to recover beyond 2,080 in the short term, however, to maintain its bullish market structure, which would require a 4% rally.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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Meanwhile, analysts say that the profits from major DeFi tokens are flowing back into Bitcoin, even&#8230;<\/p>\n","protected":false},"author":1,"featured_media":172774,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDIvMWE0NTA0YzAtMDU5My00ZTQ4LWI0NjItZWZmMzVjYzE5ZDgyLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74862,74937,74863,74868,74939,73785],"class_list":["post-172773","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin","tag-bitcoin-price","tag-cryptocurrencies","tag-defi","tag-market-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/172773","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=172773"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/172773\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/172774"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=172773"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=172773"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=172773"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}