BTC correction reins in crypto market cap amid increased COVID-19 fears
BTC Closes September in Typical Fashion, Primes Itself for Strong October
Today's edition of OKEx Insights' Crypto Market Daily covers Bitcoin, Ethereum, altcoins and DeFi.
Yesterday was the last trading day of both September and the third quarter.
The S&P 500 recorded its first monthly decline since April, dropping 3.9%. In the third quarter, however, the index gained a total of 8.5%. Gold prices fell 4.2% in September for the biggest monthly decline since November 2016 after a rising dollar reduced the demand for gold as a safe-haven asset. Despite this, gold prices rose for the eighth consecutive quarter and are up 5.9% in Q3.
BTC, on the other hand, recorded its second monthly decline since April — closing down 7.53%. However, throughout the third quarter, BTC still recorded a 14.06% gain. The market-leading cryptocurrency typically does not perform well in September, with the average return ranking last among all months. However, October is usually a strong month for BTC, with an average return of 19.50% since 2013.
In terms of Bitcoin's network activity, there has been a spike of new participants coming into BTC. According to on-chain analyst Willy Woo, this new part of the story is not yet reflected in the price. He commented that this is "obviously bullish."
Overnight, the total cryptocurrency market capitalization rose by 2.3% to $355 billion, with major altcoins generally outperforming BTC. Litecoin (LTC) and Ether (ETH) surged 4.58% and 3.83%, respectively. Chainlink (LINK) reaped a 5.58% gain and is now trading back near $10.20.
Top altcoin gainers and losers
- CVP/USDT +47.50%
- DIA/USDT +29.22%
- REN/USDT +23.98%
- TMTG/USDT -12.31%
- SFG/USDT -12.66%
- INX/USDT -20.45%
The decentralized finance sector saw a rally, with the top three altcoin gainers on OKEx all belonging to DeFi tokens. PowerPool Concentrated Voting Power (CVP) realized a huge 47.50% gain over the past 24 hours — giving it a seven-day return of 76%. DIA and REN are also up 29.22% and 23.98%, respectively.
S.Finance (SFG) continued its downward trend and was among the top losers list for the second consecutive day, falling another 12.66% overnight.
BTC technical analysis
Overnight, the price of BTC has risen to $10,900 levels — but resistance is still evident in the area of $11,000 to $11,200. The intraday support level is located at $10,600. The price still hasn’t broken out of its consolidation phase.
ETH technical analysis
ETH has risen sharply over the past 24 hours and has now entered a strong resistance area above $368. Since the volume is still not amplified, the price of ETH may potentially form a bearish divergence on the four-hour RSI indicator. The intraday support level is at $350.
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