Academy Trading Ideas Article

Bitcoin Continues Consolidation as DeFi Mania Continues: Crypto Market Daily

2020.06.22 Robbie Liu

Bitcoin (BTC) remained relatively calm over the weekend. The price of the first and foremost cryptocurrency stayed in a narrow range between $9,200 and $9,600. Bitcoin is now trading at $9,415, per OKEx’s BTC Index Price at press time (8:00 a.m. UTC). It is up 0.52% over the last 24 hours — a small uptick that is primarily being driven by U.S. stock futures rising after markets opened.

Most large-cap altcoins outperformed Bitcoin. Ether (ETH) and Bitcoin Cash (BCH) gained 1.99% and 1.08%, respectively. 

Meanwhile, DeFi mania is still underway. Compound (COMP) soared from Friday’s $166 to $280, as of press time. Basic Attention Token (BAT) jumped 5.5% in 24 hours — primarily because it is one of few tokens on the Compound platform that can receive COMP rewards via lending or borrowing.  

The total cryptocurrency market capitalization is up by $5 billion to around $270 billion today. Bitcoin dominance, meanwhile, dropped 0.5% to 64%, per data from CoinGecko.  

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

Top gainers and losers

  • CHAT/USDT +16.6%
  • HYC/USDT +13.24%
  • ARK/USDT +11.68%
  • SWFTC/USDT -8.67%
  • INT/USDT -9.90%
  • NDN/USDT -10.42%

ChatCoin (CHAT) has once again topped the winners’ list with a 16.6% return. This coin experienced a huge pullback over the weekend after a seven-day winning streak, dropping from $0.00453 to $0.0023. It rebounded quickly.

Meanwhile, HYCON (HYC) and Ark (ARK) increased by 13.24% and 11.68%, respectively. 

NDN Link (NDN) is the biggest loser over the last 24 hours, having dropped -10.42%.

BTC technical analysis

Bitcoin seems to have entered into an extended consolidation phase, having persisted for 10 days in the $9,200 to $9,600 range. Notably, both monthly and quarterly contracts will expire on Friday — but the market has, thus far, not revealed any clear direction. Long volatility could be a strategy to consider. 

To the upper side, a breakout of $9,600 could change market participants’ minds and initiate a rally chase to $10,000. Intraday, $9,300 is the threshold to watch, per OKEx’s BTC Perpetual Swap price. If the volume does not pick up, traders need to watch out for the possibility of a false breakout.

OKEx BTC Perpetual Swap 4H chart. Source: OKEx

ETH technical analysis

After today’s opening bell, the price of Ether rose. At press time, it is reaching its intraday resistance at $235. Its next hurdle is near $239. 

An intraday support level is sitting at $225 — which is far from the current price.  

OKEx ETH Perpetual Swap. 4H 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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