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Bitcoin Breakout Fueling ‘Extreme Greed’ — Crypto Market Daily

2020.07.28 Robbie Liu

Bitcoin (BTC) has finally made a major breakthrough. The cryptocurrency market leader surged 7% in the last 24 hours, rocketing past the $10,500 critical resistance level to $11,407 — its highest price since August 2018 — as per the OKEx BTC Index price. Right now, the leading cryptocurrency is trading near $10,800. 

The bullish price action has been accompanied by an increase in trading volume — indicating that the positive momentum has a strong chance of continuing. Today's OKEx BTCUSDT swap volume is likely to make a new high not seen since March 13.

BTC fork Bitcoin Cash (BCH) and its subsequent fork, Bitcoin SV (BSV), followed the original Bitcoin’s trend and are up about 7%. Litecoin (LTC) surged 10% and saw a huge increase in trading volume. On the other hand, ether (ETH) saw a minor correction after seven straight days of gains. It is down 1.75%. 

In general, the total cryptocurrency market capitalization pumped another 3.9% to above $325 billion. Meanwhile, Bitcoin’s dominance climbed back to 61.6%, according to data from CoinGecko

In the traditional market, we are also seeing price increases. The Nasdaq Composite Index added 1.6%, and the S&P 500 added 0.65%. Gold futures climbed past $1,900 per ounce on Monday. 

OKEx Token Index Board as of 8:00 am UTC – 7/28/20. Source: OKEx
OKEx Token Index Board as of 8:00 am UTC – 7/28/20. Source: OKEx

The greediest moment of the year

The optimism of crypto market participants is apparent. The Crypto Fear and Greed Index currently shows a one-year peak of 76 — indicating a state of “extreme greed.” 

Crypto Fear & Greed Index. Source: Alternative.me
Crypto Fear & Greed Index. Source: Alternative.me

Meanwhile, the BTC long/short ratio has increased from 1.02 to 1.37 and the BTC margin lending ratio surged from 10.44 to 15.53 in the last 24 hours, according to OKEx trading data. These two ratios are still running in the historically normal range. 

Due to higher funding rates, however, it is possible that bulls may close out their positions and create selling pressure.

Top gainers and losers

  • CTC/USDT +17.17%
  • SNX/USDT +16.77%
  • LRC/USDT +12.49%
  • HYC/USDT -9.26%
  • LET/USDT -11.96%
  • HDAO/USDT -12.30%

As the market sentiment has turned toward Bitcoin, small-capitalization currencies are rising only modestly. Creditcoin (CTC) gained 17.17%. After a big pullback yesterday, Synthetic (SNX) bounced 16.77% today. Loopring (LRC) ranked third, gaining 12.49%. 

The biggest loser today is HyperDAO (HDAO), which is down 12.30%.

BTC technical analysis

Bitcoin is now starting a retracement phase after hitting prices above $11,000. Because the price has surpassed the critical $10,500 resistance level, we need to pay attention to the short-term threshold of $10,670. Midterm critical support is located at $10,280. 

The next price target for the first and foremost cryptocurrency is at $11,400 — but high funding rates remain a potential roadblock to price increases.

OKEx BTC Perpetual Swap 1h chart – 7/28/20. Source: OKEx, TradingView
OKEx BTC Perpetual Swap 1h chart – 7/28/20. Source: OKEx, TradingView

ETH technical analysis

The upward momentum has slowed for the price of ETH, but the bullish trend in the midterm remains intact. A continuation of the uptrend after a short-term correction is still promising. 

An intraday support level is around $299. As long as it holds this price, we may see another test of the previous high of $334. Because ETH has risen very quickly in the early going, profit-taking could impose a lot of pressure in the short-term. 

OKEx ETH Perpetual Swap 1h chart – 7/28/20. Source: OKEx, TradingView
OKEx ETH Perpetual Swap 1h chart – 7/28/20. Source: OKEx, TradingView

LTC technical analysis

LTC has surged 10% in the last 24 hours as trading volumes have amplified. The intraday threshold is sitting around $52.50. Given the higher historical correlation between LTC and BTC, it is also important to be aware of Bitcoin's short-term movements when trading LTC.

OKEx LTC Perpetual Swap 1h chart – 7/28/20. Source: OKEx, TradingView
OKEx LTC Perpetual Swap 1h chart – 7/28/20. Source: OKEx, TradingView


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.


OKEx Insights presents market analyses, in-depth features, original research & curated news from crypto professionals.

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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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