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BTC and ETH Rebound After YAM Collapse — Crypto Market Daily

2020.08.14 Robbie Liu

The price of Bitcoin (BTC) rebounded quickly last night, recovering from a decline correlated to the crash of decentralized finance protocol Yam Finance. A triangle consolidation pattern then appeared near $11,500 in the short-term time frame. After Ether (ETH) broke through its recent resistance level, BTC started to rally — illustrating how the market leader has gradually resumed its strong correlation with the first and foremost altcoin.

The developers of YAM have now effectively lost control of its on-chain governance function and investors have suffered huge losses due to a code error that locked up $750,000 worth of Curve (CRV) tokens. The price of YAM had crashed to as low as $0.10 yesterday and is now back to $0.80 — a clear example of what can happen when a DeFi project doesn't have proper code audits. 

Major altcoins mostly outperformed BTC. The ETH price surged 8.76% while Litecoin (LTC), Bitcoin Cash (BCH) and EOS each increased by about 4%. TRON (TRX) pumped 18% today due to the upcoming launch of a Uniswap alternative, JUSTswap. 

Chainlink (LINK), on the other hand, is down 1.68% over the past 24 hours. LINK has finished two consecutive strong-performing days and the price has been pushed up from $13 to above $17. 

The best performer among mid-capitalization altcoins is Algorand (ALGO), which is up 30%. After a three-day rally, ALGO has risen from nearly $0.40 to its current $0.70. It is trading at overbought levels, according to the RSI indicator on the daily time frame. 

Top token index price board
OKEx Token Index Board as of 8:00 am UTC on 8/14. Source: OKEx

Top altcoin gainers and losers

  • RNT/USDT +74.09%
  • ALGO/USDT +30.05%
  • WAVES/USDT +22.76%
  • DMG/USDT -18.29%
  • XPR/USDT -24.88%
  • CRV/USDT -68.98%

Two coins, OneRoot Network (RNT) and WAVES, entered the list of top gainers for the second day in a row. They are up 74.09% and 22.76%, respectively. 

New listings of two decentralized finance projects

One of the most famous decentralized finance projects, Curve (CRV), has been listed on OKEx today — its initial global listing. However, CRV lost nearly 70% in five hours. Due to the overly hot bidding climate and the limited quantity at the moment, CRV was flipped to $50 as soon as it went live. The price has since fallen.

According to Twitter, a user named "0xc4ad" spent 20 ETH to deploy CRV contracts in advance — before Curve’s official release. "0xc4ad" had already mined 250,000 CRV tokens from the contract address.

Serum (SRM) is another decentralized finance project that went live on OKEx today. It is the world's first completely decentralized derivatives exchange with trustless cross-chain trading. Market participants can also join in the SRM net buy contest. The opening price of SRM was $2.00 and is trading at $2.06. 

BTC technical analysis. 

BTC's rebound that began last night showed shrinking volume — indicating that the current active follow-up funds are not really strong. Strong resistance on the bounce is located around $11,800. An intraday support level sits at $11,500.

Bitcoin perpetual swap chart
OKEx BTC Perpetual Swap 1h chart – 8/14. Source: OKEx, TradingView

ETH technical analysis

ETH broke through strong resistance yesterday and made a new short-term high, thanks to strong demand from stemming from DeFi. $410 is a still critical level to watch, where it flipped previous resistance into support. 

Ethereum perpetual swap price
OKEx ETH Perpetual Swap 4h chart – 8/14. Source: OKEx, TradingView


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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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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