Academy Trading Ideas Article

Bitcoin Attempts to Rally Following Overnight Sell-Off — Crypto Market Daily

2020.06.25 OKEx

The price of Bitcoin (BTC) is trading at $9,170.78 as of 9:50 am UTC, per OKEx’s BTC Index Price. The first and foremost cryptocurrency has fallen by approximately -3.89% over the past 24 hours.

The volatility of Bitcoin’s price has spiked following a low period. As OKEx Insights noted in yesterday’s Crypto Market Daily, crypto traders were likely expecting a big move ahead of Friday’s expiration of options contracts worth a massive $1 billion.

Bitcoin’s 24h volatility (BVOL24H) chart. Source: TradingView

As is often the case when the price of BTC drops, the broader cryptocurrency market is appearing as a sea of red. Ether (ETH) is down -4.14% and Bitcoin Cash (BCH) is down -2.55% while the rest of the altcoin market shows similar declines.

OKEx Token Index prices. Source: OKEx

The total cryptocurrency market capitalization has dropped by -3.8% to $266,333,747,932, per data sourced from CoinGecko. Likewise, Bitcoin’s dominance is now sitting at 63.8% — a barely noticeable increase from yesterday’s 63.7%.

Total cryptocurrency market capitalization over the last 24h. Source: CoinGecko

Top gainers and losers

  • MOF/USDT +65.78%
  • NDN/USDT +30.56%
  • HDAO/USDT +21.35%
  • NULS/USDT -9.98%
  • IQ/USDT -10.21%
  • TMTG/USDT -30.10%

Molecular Future (MOF) has jumped a massive 65.78% despite the broader crypto market decline. Likewise, NDN Link (NDN) and HyperDAO (HDAO) increased by 30.56% and 21.35%, respectively.

On the other side of the spectrum, The Midas Touch Gold (TMTG) leads the biggest losers’ category with a -30.10% drop in price. Everipedia (IQ) and NULS (NULS) dropped a less dramatic but still significant -10.21% and -9.98%, respectively.

BTC technical analysis

On the daily time frame, the price of Bitcoin is testing a macro support area in the form of the EMA ribbon. A close below this ribbon of support may indicate a period of bearishness lies ahead, especially if it flips and turns the EMA ribbon into resistance.

EMA ribbon on the daily OKEX:BTCUSD1W price chart. Source: TradingView

As of press time, the price of Bitcoin is bouncing on the lower time frames. Historical resistance around the $9,400 area is one area traders will certainly keep an eye on. An immediate rejection could see the market leader’s price fall to $8,860 or lower.

Should BTC continue to rally off the bounce, we may see a situation in which over-eager traders are trapped in short positions.

OKEx BTC-USD 6h price chart. Source: OKEx

ETH technical analysis

As of press time, the price of Ether is attempting to rally off a bounce alongside the price of Bitcoin.

As is the case with the market leader, we may be looking at a situation in which shorts are trapped. However, if the bounce gets sold off, we could be looking at still-lower prices.

OKEx ETH-USD 15m price chart. Source: OKEx

Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

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