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BTC Breaks Through $12,000 as DeFi Stumbles — Crypto Market Daily
The price of Bitcoin (BTC) effectively broke through the previous resistance level of $12,000 and made a new yearly high of $12,475, as per OKEx's BTC Index Price. This is the third time in August that the market-leading cryptocurrency has attempted to break the $12,000 threshold. Right now, it is consolidating near $12,260 with shrinking volume.
The total cryptocurrency market capitalization jumped 2.7% to $393 billion overnight. Meanwhile, BTC regained 0.5% of its dominance, as per data from CoinGecko.
Among major altcoins, TRON (TRX) kept its bullish momentum ahead of today's launch of its DeFi project, JUSTswap. It is up 7% over the last 24 hours. The price of Litecoin (LTC) rose for the fifth day in a row, adding 5% to its gains. It is now trading at $67. Ether (ETH) underperformed against BTC but is still up 1.28%. EOS, on the other hand, fell 2.20%.
For the second day in a row, Chainlink (LINK) fell an additional 10%, due to continued profit-taking. The price of the altcoin is now struggling to gain traction around $17, with support at the $16.50 level. Algorand (ALGO) saw a similar decrease overnight.
An interesting recent observation is that many tokens in the decentralized finance sector are moving in the opposite direction from Bitcoin. Maker (MKR), Synthetix (SNX), Compound (COMP) and Kyber Network (KNC) all saw 5%–7% declines.
Along with the price rally, the aggregated open interest of BTC futures reached an all-time high of $5.8 billion today, as per skew's data. Meanwhile, BTC's three-month implied volatility jumped to 4.0% — the highest level since late May. The spread difference between implied volatility and realized volatility jumped to 1.4%.
The last time we saw a spread of this level was in mid-May 2019, when the price of Bitcoin started a rise from nearly $7,000 toward $14,000 — but it was accompanied by a pullback of more than 10%. Accumulation of open interest with rising implied volatility leads to larger price movements.
Top altcoin gainers and losers
- KCASH/USDT +51.84%
- INT/USDT +28.64%
- CVC/USDT +13.01%
- ROAD/USDT -6.78%
- WGRT/USDT -16.45%
- CRV/USDT -24.92%
For the second consecutive day, KCASH made the list of top altcoin gainers. It is up 51.84% over the last 24 hours, but its price changed dramatically. KCASH made a 123% surge in one hour on Aug. 16, then realized a 40% pullback.
Curve (CRV) is again the biggest loser, down 24.92% overnight. CRV surged right after its listings on OKEx and Binance on Aug. 14, but then pulled back quickly and continued its bearish momentum toward its theoretical price of $1.
BTC technical analysis
Yesterday, BTC broke above recent major resistance at $12,000. Afterward, the trading volume shrank sharply and the price stagnated. The mid- to long-term bullish trend is still intact, with no signs of destruction.
An intraday threshold is located at $12,270. If it breaks, it may test the key support at $12,000.
ETH technical analysis
After Bitcoin hit a yearly high yesterday, the price of ETH rose slowly. The ETH/BTC trading pair fell for the fourth straight day. The price of ETH may continue to hover between $415 and $445.
Intraday, ETH needs to hold the $428 threshold — otherwise, it may go down further as Bitcoin retraces.
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