Academy Trading Ideas Article

Bitcoin Price Tightens as Bullish Sentiment Creeps In: Crypto Market Daily

2020.05.13

The price of Bitcoin (BTC) oscillated within a narrow range over the last 24 hours, with two failed attempts at breaking $9,000. As of press time (10:30 UTC), the leading cryptocurrency is trading at $8,922.92 (1.53 percent) per OKEx’s BTC Index Price. It is also the leader among big-cap cryptocurrencies on the daily Token Index Board

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

Bitcoin’s third halving has come and gone. Inefficient miners may sell out their holdings and quit the market soon, since the income of miners is cut nearly in half. The market may currently be under pressure from sellers for the next several weeks. 

New way to explore OKEx trading data

Today, OKEx announced cooperation with Skew, one of the most trusted sources of crypto market derivatives data. We hope it helps traders to better utilize OKEx trading data in their trading decisions. 

According to Skew’s data, on Bitcoin’s halving day, we saw a sharp decrease in Open Interest (OI). It increased slightly by four percent yesterday while the leading cryptocurrency rose from $8,700 to $8,900 — indicating a small recovery in bullish sentiment. 

The BTC Long/Short Ratio saw a decline from yesterday’s high of 1.18 to current 0.93 — suggesting that retail traders are still not confident about further price increases.

OKEx BTC Futures & Swaps Aggregated Daily Volume and Open Interest. Source: Skew

BTC Technical Analysis

Looking at OKEx BTC Quarterly Futures (BTCUSD20200626), the price has not moved much in the last 24 hours and trading volume has been shrinking. Short-term momentum is still in favor of the bulls, as we keep seeing higher lows on the one-hour chart. 

An intra-day support level exists at $8,680 and short-to-mid-term support is still sitting near $8,200. The intraday resistance area to focus on is around $9,150. 

OKEx BTC Quarterly Futures (BTCUSD0626) 1H chart (as of 18:00 Hong Kong Time). 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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