Academy Trading Ideas Article

Bitcoin Becomes Riskier as Traditional Markets Falter: Crypto Market Daily

2020.06.12 adamokex

A month has passed since Bitcoin’s third block reward halving event. Looking at the Bitcoin (BTC) price, the current price of about $9,500 is still above the closing price of $8,800 on the halving day — even after a $600 drop yesterday. 

Over the past month, the price has hit $10,000 four times, but none of them made a breakthrough to the yearly high of $10,510, as per OKEx’s BTC Index Price.

Bitcoin’s correlation with risky assets has accelerated again this week after a period of decoupling from the broader economy. Yesterday, the Dow Jones Industrial Average lost 1,900 points (6.9 percent) while the S&P 500 and Nasdaq also tumbled — falling 5.89 percent and 5.27 percent, respectively. Bitcoin dropped 6.34 percent in the same time period. 

The factors that will determine the direction of Bitcoin in the near term may be more focused on the macroeconomic situation. Growing pessimism about the global economy may make it difficult for Bitcoin to get back to $10,000.

Looking at large-cap cryptocurrencies, all of them dropped further than Bitcoin. EOS and Bitcoin Cash (BCH) tumbled more than five percent over the last 24 hours.

Other currencies that rose dramatically earlier in the week, such as ZIL and MKR, have fallen by 10 percent and 14 percent, respectively. 

The total cryptocurrency market capitalization has been down a huge of 3.3 percent to $270 billion. However, Bitcoin dominance remains at 64.5 percent for the fourth consecutive day, per data from CoinGecko.  

crypto market prices
OKEx Token Index Board (as of 10:00 UTC). Source: OKEx

Top gainers and losers

  • MDT/USDT +11.91%
  • ZIP/USDT +6.58%
  • LRC/USDT +5.58%
  • MKR/USDT -13.97%
  • CHAT/USDT -16.44%
  • HYC/USDT -17.13%

According to OKEx spot data, MDT is the top gainer over the last 24 hours with an 11.91 percent return. The other two on the top gainers’ list are ZIP and LRC

HYC is the biggest loser over the last 24 hours. 

Bitcoin technical analysis

Yesterday’s drop was very sharp. At the same time, the selling volume has not been greatly amplified. Since Friday’s price rebound was stronger than expected, short-term selling pressure may be reduced. With Bitcoin’s price again above $9,500, it may move sideways for a while.  

Short-term support is sitting around $9,300. If Bitcoin’s price cannot break below this level, it may test the upper resistance near $9,700. However, traders may be wise to keep an eye on other markets for clues as to the leading cryptocurrency’s next move. 

btc usd
OKEx BTC Quarterly Futures (BTCUSD0925) 2H chart. Source: OKEx

Ethereum technical analysis

Ethereum could move in the $235 to $255 range, in the longer term. A fake breakout of $235 yesterday may have trapped a lot of traders. Intraday upper resistance is located around $243. 

eth usd
OKEx ETH Quarterly Futures (ETHUSD0925) 2H 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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