Bitcoin Loses Momentum, But On-Chain Metrics Signal Bullish Reversal, UNI Soars 20% After New Fee Proposal 

After a strong start to the week, rallying to $107,000, before dropping back to the $105,000 support. Although there has been a drop in bullish momentum, the rise in Bitcoin’s apparent demand and spot activity suggests that a trend reversal could happen soon.

The bullish trend will be confirmed when the Bitcoin price breaks above $100k. However, through the current bearish market, Uniswap (UNI) has been skyrocketing. The price of UNI has jumped by more than 20% over the last day after the proposal of a fee switch activation by Uniswap Labs.

Uniswap (UNI) Pumps 20% on Proposal for New Economic Model 

UNI, the native token of the Uniswap decentralized exchange, is one of the biggest gainers today. The price of UNI has jumped by more than 20% today, briefly rising as high as $10 as the Uniswap Labs and Foundation proposed “UNIfication” to introduce a new economic model.

The UNIfication proposals, if passed, will involve directing a portion of trading fees towards burning UNI to reduce supply. This could increase the value of the UNI token. Fees generated from Sequencer will also be used for this purpose.

Additionally, the initiative includes the one-time removal of 100 million UNI tokens from the project’s treasury, which would be burned. The proposal also includes plans to relocate teams from Foundation to Labs. 

However, it is the potential drop in UNI’s circulating supply that has sparked the massive price increase for UNI. Tyrion Trades, a popular crypto analyst, is very optimistic about this development, forecasting that the UNI price has a very good chance of rallying to $50 by next year.

Bitcoin Drops To $105K, But Signals Point To Bullish Reversal

The Bitcoin price began this week with a 5% pump, as it climbed to challenge the $107K resistance. Nevertheless, following a failure to reclaim this point, the price of Bitcoin has declined to the support zone of $105k.

Nevertheless, on-chain performance metrics have just begun to shift. Bitcoin’s apparent demand, which has been negative since October 8, has shifted to a positive outlook. With the surge in demand, this metric has increased to 5,251 BTC on November 11, its highest level since July 31.

The Bitcoin Apparent Demand metric gauges the demand of BTC by measuring production (mining issuance) minus inventory (supply that has been inactive for over one year). 

Moreover, Glassnode has indicated that the volume of spot trading in Bitcoin has gone up by 23 percent to reach $14.1 billion against $11.5 billion in the previous week. Glassnode predicted that the increase in spot volume indicates a recovery in investor activity, which may indicate a possible breakout move.

The confirmation for the Bitcoin bullish reversal will happen when the BTC price rises above the $110k resistance level. If Bitcoin crosses this resistance level, it could rally to $120k and possibly move to set a new ATH before the end of 2025.

In Summary

While the Bitcoin price looks to be losing momentum, UNI has been leading the gainers’ charts, thanks to a potential change in its economic model. However, changing trends suggest that Bitcoin could see a bullish reversal soon, which has the potential to push its price to a new ATH.