Academy Trading Ideas Article

Bitcoin Wobbles After Dump-and-Pump Weekend: Crypto Market Daily

2020.06.08 Robbie Liu

Bitcoin (BTC) made a dump and pump over the weekend — with a traded range between $9,400 and $9,800 — as prices fell sharply on Sunday morning (UTC) before recovering in the evening. Volatility has increased recently and derivatives traders should be aware of overleveraging. 

In the past 24 hours, the price of Bitcoin went up by 1.38 percent — outperforming most of the big-cap cryptocurrencies. It is trading around $9,740, as per OKEx’s BTC Index Price (10:00 UTC). Ethereum (ETH) and Bitcoin Cash (BCH) increased by 1.42 percent and 1.02 percent, respectively. 

The total cryptocurrency market capitalization increased from Friday’s $273 billion to $277 billion. Bitcoin dominance remains at 64.5 percent, per CoinGecko data.  

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

Top Gainers and Losers

  • BNT/USDT +25.20%
  • YOU/USDT +17.36%
  • MKR/USDT +15.19%
  • BEC/USDT -6.19%
  • CVT/USDT -8.64%
  • DEP/USDT -9.54%

According to OKEx Spot data, BNT is the top gainer over the last 24 hours — with a 52.2 percent return. BNT is going smoothly towards its Bancor V2 release in June. 

Other top gainers are YOU and MKR. As we noted in our Market Watch Weekly, MKR was listed on Coinbase Pro today. The Coinbase listing effect could push the MKR price higher this week.

DEP is the biggest loser over the last 24 hours. 

Ethereum network fees surpassed Bitcoin’s 

On June 7, Ethereum network fees once again exceeded bitcoin miners’ fees. Transaction fees represent the liveliness of the activities on each network, to some degree. 

The reasons behind this likely stem from the USDT circulating on the Ethereum network. Additionally, Ponzi schemes and marketing schemes are among the top spenders of Ethereum transaction fees, as per a report from The Block

Daily Network Fees – Bitcoin vs Ethereum. Source: Glassnode

The ETH/BTC pair turned bullish from May 15 and has increased 17 percent over the last three weeks. The market is looking forward to the ETH 2.0 upgrade and its proof-of-stake switch in Q3 2020. 

The ETH/BTC is currently forming a double-bottom pattern. If the pair can go above the neckline of the pattern on the daily chart — sitting at 0.026 — then the price of Ethereum could have a great probability to rise quickly and can drive a batch of altcoins pumping together. 

OKEx ETH/BTC 1D Chart. Source: OKEx

Bitcoin technical analysis

Once again, Bitcoin buyers defended the $9,450 support level over the weekend. Despite the V-shaped recovery, the price of Bitcoin did not change much from Friday’s close.

Shortly before press time (10AM UTC), Bitcoin made another pump to as high as $9,975, per OKEx Quarterly Futures (BTCUSD0626) price. However, it quickly pulled back to its earlier heavy trading zone of $9,750 after strong selling pressure. BTC repeatedly made long wicks on the hourly chart.

Since the Bitcoin price did not drop further after testing $9,450 yesterday, the market sentiment is still biased bullish. The price has a great probability to run around the $9,450 to $10,200 interval in the short term. Similar to Sunday’s movement, fake breakouts could happen again.

OKEx BTC Quarterly Futures (BTCUSD0626) 1H chart. Source: OKEx

Ethereum technical analysis

The movement of Ethereum in recent days is in line with Bitcoin, basically ranging around the $233 support level and $253 resistance — indicating a short-term balance between bulls and bears. Intraday support is sitting at $240 with a daily high of $248 as resistance. 

OKEx ETH Quarterly Futures (ETHUSD0626) 1H 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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