Academy Trading Ideas Article

Bitcoin’s Price Rises as Sentiment Warms: Crypto Market Daily

2020.06.23 Robbie Liu

The price of Bitcoin (BTC) has continued yesterday’s upward trend. The market-leading cryptocurrency is up 2.34% over the last 24 hours. 

The upswing has occurred in tandem with a rise in share prices on the U.S. stock market. Notably, Bitcoin’s price was not particularly affected by a statement from Peter Navarro — a trade adviser to President Trump — whose initial comments on the U.S.–China trade deal caused a panic sell on the stock markets, with the S&P 500 index futures falling by as much as 1.6%. 

After trading sideways for the past several days, the price of Bitcoin is back to its highest level since June 11. The price per coin hit $9,784 yesterday at roughly 9:00 p.m. UTC and consolidated around $9,650, per OKEx’s BTC Index Price. This price increase follows the emergence of rumors about PayPal launching services for purchasing digital currency. 

OKEx BTC Spot Price vs. S&P 500 Index Futures Price. Source: TradingView

Benefitting from a full-blown DeFi craze, the price of Ether (ETH) outperformed Bitcoin for the second day in a row and is up 3.62%. As of press time, it is trading at the upper Bollinger bands with some overbought signals. 

Additionally, Bitcoin Cash (BCH) gained 1.98% over 24 hours. 

Three DeFi altcoins realized more than 15% gains today, per Messari’s data — i.e., Hydro Protocol (HOT), Melon Protocol (MLN) and Bancor (BNT). 

Other top-performing cryptocurrencies fall within the mid-cap range. IOST (IOST) and Ontology (ONT) earned returns of 10% and 6.4%, respectively. 

The total cryptocurrency market capitalization is up by $6.7 billion from yesterday’s $270 billion. Bitcoin dominance, meanwhile, remains unchanged, per data from CoinGecko.  

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

Top gainers and losers

  • DGB/USDT +31.74%
  • LET/USDT +21.28%
  • BCD/USDT +17.36%
  • GAS/USDT -4.89%
  • ORBS/USDT -5.02%
  • HYC/USDT -12.71%

DigiByte (DGB) made another big gain following its listing on a major exchange and is up 31.74%. Meanwhile, LinkEye (LET) and Bitcoin Diamond (BCD) increased by 13.24% and 11.68%, respectively. 

HYCON (HYC) is the biggest loser over the last 24 hours, having dropped by -12.71%.

BTC technical analysis

On the hourly chart, we can see that the trading volume for BTC has amplified moderately and recently broke a strong resistance at $9,600. This may change the previous weak pattern. 

In the derivatives market, the quarterly future premium is back above $100, with a huge number of 500,000 contracts (1 contract = $100) added in the last 24 hours. It is also a sign of warmer sentiment. 

Intraday, traders should pay special attention to the $9,550 threshold, per OKEx’s BTC Perpetual Swap price. As long as the price of Bitcoin does not break below this level, we may see it rise another leg higher. In the midterm, $10,100 is a strong resistance level, and BTC’s price is likely to stagnate once reaching that range. 

OKEx BTC Perpetual Swap 1H chart. Source: OKEx

ETH technical analysis

The hype surrounding DeFi has clearly helped the price of ETH regain its bullish momentum, and its pattern looks stronger than BTC’s. 

Ether’s price passed both the $235 and $239 intraday resistances yesterday, indicating that it has a good chance of testing $250 again. $237 is the threshold to watch in the midterm. 

OKEx ETH Perpetual Swap. 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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