Everything bounces after China Bitcoin mining ban causes capitulation
Bitcoin’s Consolidation Gives Smaller Altcoins a Chance to Move
Bitcoin (BTC) price dropped as low as $11,255 yesterday morning before bouncing back and consolidating between the $11,400 and $11,500 range, as per OKEx's BTC Index. Notably, the price of gold also recovered quickly yesterday to set a weekly high.
Meanwhile, U.S. stocks continued to move higher overnight, with the Nasdaq Composite Index and S&P 500 hitting new all-time highs, driven by a rise in tech stocks.
In crypto, major large-cap coins posted minor gains, with Ether (ETH) and Litecoin (LTC) rising 0.99% and 0.76%, respectively. Chainlink (LINK), however, broke through the $15 resistance and rose 6.40% overnight.
The total crypto market capitalization remains unchanged at around $370 billion, as per data from CoinGecko, while BTC’s dominance dropped slightly to 56.7%.
Overnight trading action also saw Polkadot (DOT) and its ecosystem tokens rising rapidly. The market capitalization of DOT, having risen more than 100% in seven days, now places it sixth in terms of ranking.
DOT has effectively overtaken large coins, such as Bitcoin Cash (BCH), in terms of market cap and is around $20 million away from the fifth spot, currently occupied by LINK, as per CoinGecko's data.
Another hot sector overnight was that of decentralized autonomous organizations, with its related tokens — such as Aragon (ANT), Mantra DAO (OM) and Pinakion (PNK) — surging 14%, 12% and 26%, respectively.
Top altcoin gainers and losers
- XUC/USDT +143.03%
- ACT/USDT +73.16%
- CELO/USDT +40.04%
- ATOM/USDT -7.17%
- TMTG/USDT -15.58%
- KCASH/USDT -24.35%
After Bitcoin bottomed out, we’ve seen small-cap altcoins skyrocketing on a daily basis. Exchange Union (XUC) soared 143.03% over the last 24 hours, while Achain (ACT) and CELO jumped 73.16% and 40.04%, respectively.
CELO's big rise is influenced by its listing on Coinbase, whereas KCASH was down 24.35% due to profit-taking after a series of sharp rallies.
BTC technical analysis
Bitcoin has been witnessing a relative shrinking in trading volumes, indicating that active selling continues to weaken. However, the rebound from yesterday was not very strong either, which means traders should be watching the important support at $11,200 for now.
ETH technical analysis
ETH and BTC are trending very similarly. The $368 low looks like the bottom of the downward trend, while the intraday threshold is located around $385. We can expect further gains if ETH manages to break above $385. On the downside, if $368 fails to hold, ETH could slip to lows around $300.
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