For the past two days, Bitcoin price has traded within the $14,800 to $15,500 range but the top-digital asset struggled to flip $15,500 to support.
A positive is BTC continues to make higher lows and at the time of writing the price is trying to break from the range but still encountering resistance at $15,500.
While BTC price has bounced back and forth, altcoins and select DeFi tokens capitalized on the consolidation phase and turned bullish.
DeFi having a day
— Messari (@MessariCrypto) November 10, 2020
As Messari pointed out earlier today in a tweet, DeFi tokens like Yearn Finance (YFI), AAVE, Balancer, and UNI are all up by double digits. Most notably, YFI has gained roughly 160% after bottoming at $7,444 on Nov. 5 and in the past two days, AAVE went on an absolute tear as the token rallied 175% from $25.87 to $70.91.
Aside from these tokens, a handful of smaller cap tokens on decentralized exchanges are also racking up gains, and data from Dune Analytics signals that investors are beginning to become more active in the DeFi space again.
Daily DEX volume. Source: Dune Analytics
As DEX volumes increase so do the number of daily active users and today the sector reached a new record as DeFi Pulse noted that the total value locked in DEX platforms surged to $12.87 billion.
Total value locked in DeFi (USD). Source: DeFi Pulse
While it is probably too early to call for an altseason, Ether (ETH) has turned bullish again and within the last 3-hours the altcoin broke through its pennant structure and rallied to $466.60.
ETH/USD 4-hour chart. Source: TradingView
Analysts have also noted that the ETH/BTC pair broke from its downtrend and is currently climbing higher toward the 0.32323 sats resistance.
ETH/BTC daily chart. Source: TradingView
Historically, altcoins tend to rally when Bitcoin price is sideways and Ether’s strengthening fundamentals could be a sign that DeFi and altcoins may be on the verge of a trend change.
For the short-term, traders will be watching to see if BTC can turn the $15,500 to $16,000 level to support at this is likely to pull a few bullish altcoins higher. Alternatively, if BTC price remains sideways over the coming days, there could be a continued advance from the top DeFi tokens and a handful of altcoins.