Bitcoin, ApeCoin & Optimism – European Wrap 13 November

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Bitcoin and Ethereum price rallies have paused over the weekend, allowing investors to take a step back and look at the big picture. So, let’s take a look at the big picture. 

This week is extremely important for crypto investors for one singular reason – the Bitcoin spot ETF decision that the United States Securities and Exchange Commission (SEC) is set to take. As mentioned in the previous publication, the ETF window, extending from November 13 to 17, is when the SEC could batch-approve all 12 ETF applications. Hence, this event could serve as the biggest tailwind for the extension of this rally. 

ApeCoin’s on-chain metrics reveal an underlying bearish divergence. APE price gains are therefore unsustainable and a correction in APE is likely in the short term. In the days leading up to the ApeCoin token unlock event on November 17, the asset’s price could rally, despite the bearish outlook from on-chain metrics.

An analysis of active addresses, trade volume and network growth of ApeCoin reveals an underlying bearish divergence. While APE price yielded in the region of 40% gains for holders over the past month, active addresses of the NFT token have dropped. This is a bearish divergence that points at an impending correction in APE. 

Optimism, a Layer 2 protocol, noted a spike in its accumulation by digital asset firm, Amber Group. The token’s on-chain metrics support a bullish thesis for the asset. The token’s price climbed 50% over the past 30 days, yielding gains for the Layer 2 token’s holders.

The Layer 2 token noted accumulation by both institutional investors and traders. Based on data from on-chain tracker Data Nerd, a wallet address associated with the Amber Group, withdrew 2.84 million OP tokens from Binance. The Amber Group has accumulated a total of 5.37 million OP tokens, worth $9.37 million in the past three days.