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BTC Breaks Through $12,000 as DeFi Stumbles — Crypto Market Daily

2020.08.18 Robbie Liu

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. 

OKEx Token Index Board as of 8:00 am UTC on 8/18. Source: OKEx

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.

BTC implied volatility vs. realized volatility. Source: skew

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. 

Internet Node Token (INT) and Civic (CVC) gained 28.64% and 13.01%, respectively. 

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.

OKEx BTC Perpetual Swap 6h chart – 8/18. Source: OKEx, TradingView

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. 

OKEx ETH Perpetual Swap 6h chart – 8/18. 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.


OKEx Insights presents market analyses, in-depth features, original research & curated news from crypto professionals. 

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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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