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BTC forming potentially bearish pattern as US economic stimulus bill stalls

2020.10.15 Adam James

Today's edition of OKEx Insights' Crypto Market Daily covers Bitcoin, Ethereum, altcoins and DeFi.

The price of Bitcoin (BTC) remains relatively flat this morning. As of press time, the market-leading cryptocurrency is down a minor 0.1% and is trading around 1,386.87 USDT on OKEx. 

Major altcoins have also seen muted gains or losses. The prices of Ether (ETH) and Litecoin (LTC) are down less than 1%, while Bitcoin Cash (BCH) is up 3.7%. Chainlink (LINK) and Cardano (ADA) are also down more than 2.5% — but there has been nothing particularly dramatic among the cryptocurrency market's top projects.

The total cryptocurrency market capitalization shaved off another 0.7% over the past 24 hours, according to data sourced from CoinGecko. It now sits at $366,087,019,539. At the same time, BTC dominance is up 0.3% from yesterday's 57.3% and now sits at 57.6%.

The cryptocurrency market is almost universally red with slight losses today, with the major Bitcoin forks BCH and BSV being the exceptions. Source: Coin360

Wednesday saw traditional markets pull back, which correlates to the cryptocurrency market pullback. Dow Jones futures, S&P 500 and Nasdaq futures all fell last night following United States Treasury Secretary Steven Mnuchin's claim that a stimulus bill to combat the continued COVID-19 economic fallout is unlikely to come to fruition before the presidential election in November.

Top altcoin gainers and losers 

  • TRADE/USDT +16.67%
  • RSR/USDT +13.89%
  • SRM/USDT +12.54%
  • ROAD/USDT -12.66%
  • DIA/USDT -14.21%
  • TAI/USDT -15.07%

UniTrade (TRADE) has bounced back from some time spent on the worst performers' list — topping today's winners' list with a gain of over 15%. Reserve Rights (RSR) and SRM have also seen gains of more than 10%.

The biggest losers over the past 24 hours fell less than those from yesterday. The worst performer is tBridge (TAI) with a loss of roughly 15%. Decentalised Information Asset (DIA) and ROAD also dropped by more than 13%, each.

BTC technical analysis

Alongside some general weakness in the traditional markets, the price of BTC is forming what appears to be a bearish diamond reversal pattern underneath major resistance. These often occur at the tops of movements. 

There isn't a lot of reason to be overly bearish, however. Still, buyers will need to step in to push the market leader through $11,800, lest the price breaks downward.

Bitcoin price chart - 10/15
OKEx's BTC/USDT 4h chart — 10/15. Source: OKEx, TradingView

ETH technical analysis

On the daily timeframe, the price of Ether (ETH) is still sitting underneath major resistance. One particularly noteworthy development is the slight upward trajectory of the ribbon of exponential moving averages. ETH buyers may look to this ribbon for support in a push to break above to the next range.

Ethereum price chart - 10/15
OKEx's ETH/USDT 1D chart — 10/15. Source: OKEx, TradingView

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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.

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

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