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Bitcoin Bulls Keep Control as Fed Stays Dovish — Crypto Market Daily

2020.07.30 Robbie Liu

The Federal Reserve is keeping interest rates unchanged and has reiterated its dovish stance as Chairman Jerome Powell continued to emphasize the negative economic impact of the coronavirus pandemic — noting the need for fiscal policy to support the recovery.

Traditional markets closed higher on Wednesday. The Nasdaq Composite Index rose 1.35% and the S&P 500 gained 1.24%. Gold futures prices continued to rise following the Fed’s decision, hitting another all-time closing high on Wednesday.

In the cryptocurrency market, the price of Bitcoin (btc-usd" target="_blank" rel="noreferrer noopener">BTC) has started a retracement after hitting a higher low of $11,350 last night. It dropped 0.77% and is currently trading at $10,942, as per the OKEx BTC Index price. 

Though the price of Ether (ETH), the native currency of the Ethereum blockchain, experienced a correction of under 1%, altcoins with large market capitalizations experienced stronger pullbacks. EOS fell 4.14%, while Litecoin (LTC) and Bitcoin Cash (BCH) closed with a loss of 2.66% and 2.87%, respectively. Many mid-cap altcoins have also seen pullbacks in the 3%–4% range. 

The Shelley hard fork of the Cardano blockchain has finally arrived. The latest upgrade brings stake pools and delegations. Prices for Cardano’s Ada (ADA) coin, on the other hand, continued to slide after the upgrade — falling 3% in the last 24 hours.

The price of ChainLink (LINK) has not strengthened and has been down four of the last five trading days. LINK is trading around $7.20, having lost 20% from its mid-July’s high of $8.90 after a controversial blog alleging price manipulation began circulating on Twitter. 

In general, the total cryptocurrency market capitalization lost 1.2% and is currently at $328 billion. Meanwhile, Bitcoin’s dominance did not change much, according to data from CoinGecko

OKEx Token Index Board as of 8:00 am UTC on 7/30/20. Source: OKEx
OKEx Token Index Board as of 8:00 am UTC on 7/30/20. Source: OKEx

Crypto analytics firm Glassnode updated its data to show that 93% of Bitcoins in circulation are profitable when the price of the leading cryptocurrency exceeds $11,000. Currently, 40% of all circulating Bitcoins cost under $4,000, while 43% cost $4,000–$9,600 and 10% cost $9,600–$11,000. If the data is accurate, we may not see much selling pressure above $11,000.

Bitcoin Percent Supply in Profit. Source: Glassnode
Bitcoin Percent Supply in Profit. Source: Glassnode

Top gainers and losers

  • APIX/USDT +29.23%
  • ROAD/USDT +20.50%
  • BEC/USDT +11.72%
  • MITH/USDT -8.67%
  • HYC/USDT -8.30%
  • PST/USDT -9.57%

Two small-cap altcoins are up over 20% in the last 24 hours. APIX and ROAD surged 29.23% and 20.5%, respectively — and yesterday’s biggest loser, Beauty Chain (BEC), rebounded 11.72%. 

Hycon (HYC) dropped 8.3% today after being listed as a top gainer yesterday. Primas (PST) is the biggest loser today, down 9.57%.

BTC technical analysis

Technically, moving averages (MA30/MA60) on the four-hour chart are still running upward, and the BTC price is holding above the short-term threshold of $10,670.

We have seen some selling pressure near the $11,300 area, but trading volume is shrinking. The trend appears to still be under the bulls’ control. 

Due to profit-taking, it may be difficult to see a large and rapid rise in the short term. However, if the price retraces to the area around $10,670 and shows signs of seller exhaustion, buyers may look to step in. 

 OKEx BTC Perpetual Swap 4h chart – 7/30/20. Source: OKEx, TradingView
 OKEx BTC Perpetual Swap 4h chart – 7/30/20. Source: OKEx, TradingView

ETH technical analysis

ETH keeps consolidating and has not changed much since yesterday. Intraday support is located at $311, with resistance near $328. As is the case with BTC, ETH’s upward momentum remains intact.

OKEx ETH Perpetual Swap 1h chart – 7/30/20. Source: OKEx, TradingView
OKEx ETH Perpetual Swap 1h chart – 7/30/20. 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.

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