BTC under pressure from sellers, SushiSwap stages comeback
Bitcoin fundamentals remain strong as crypto market prices plummet
Today's edition of OKEx Insights' Crypto Market Daily covers Bitcoin, Ethereum, altcoins and DeFi.
The cryptocurrency market has undergone nothing short of a bloodbath over the past 24 hours — hacking 16.4% off its total capitalization, which has fallen back beneath $1 trillion to $923.5 billion.
The price of BTC has lost nearly 17% over the same time frame while the leading altcoin, ETH, has lost more than 21%. The rest of the wider altcoin market is similarly negative.
The traditional markets, meanwhile, aren't failing much better. United States futures largely pulled back after last week's enthusiasm amid a cooling of sentiment and fears that tax increases from the incoming Biden administration will hamstring investor confidence. Markets in Europe also have also been hit by pessimism surrounding the ongoing COVID-19 pandemic.
Despite the extreme sell-off, the fundamentals of Bitcoin remain stronger than ever. Both mining difficulty and the network's hash rate are currently at all-time highs — a sign that the current price action is being driven largely by the liquidation of speculators and over-leveraged traders.
DeFi market surges as Uniswap widens gap with SushiSwap
The decentralized finance market has not been spared. The total value locked in DeFi still remains above $20 billion but has decreased from yesterday's pre-dump $23.09 billion, as per data from DeFi Pulse. Maker dominance, meanwhile, is down to 18.36% after a particularly hard hit to its TVL of 17.33% — the worst among the top 10 DeFi projects.
SushiSwap has taken the biggest hit to its TVL among the three largest decentralized exchanges. The third-place DEX has lost 16.65%, while first-place Uniswap and second-place Curve Finance have dropped 12.20% and 8.45%, respectively.
Top altcoin gainers and losers
- ZEN/USDT +14.66%
- GNX/USDT +6.51%
- ARDR/USDT +3.33%
- BCD/USDT -30.76%
- BTG/USDT -32.64%
- CTXC/USDT -49.06%
There are only 13 or so coins currently up in value over the past 24 hours on OKEx — many of which are stablecoins with gains of less than 1%. The volatility is also making it nearly impossible to provide an accurate list of the best and worst performers, so the above list may look different by the time you are reading this Crypto Market Daily.
BTC technical analysis
Taking a look at the CME Bitcoin Futures chart, we can see that BTC is currently losing the temporary support it found around $33,000. Continued selling could see the price drop to as low as $28,000, where a price gap down to $23,000 would be only one stop away.
Though CME gaps have become something of a meme during BTC's recent parabolic run, a flush to levels that low would simultaneously reset sentiment — which has remained extremely greedy for an extended period of time — and retest the area around the market leader's previous all-time high from December 2017.
ETH technical analysis
The price of ETH isn't fairing well and also seems intent on challenging buyers around 880 USDT.
Not an OKEx trader? Learn how to start trading!
OKEx Insights presents market analyses, in-depth features, original research & curated news from crypto professionals.