BTC correction reins in crypto market cap amid increased COVID-19 fears
BTC Sells Off Alongside Global Equities Market, DeFi Continues Collapse
Today's edition of OKEx Insights' Crypto Market Daily covers Bitcoin, Ethereum, altcoins and DeFi.
Monday was another risk-off day in the global markets as virtually everything declined — except for the U.S. dollar. The S&P 500 Index dropped 1.16% and recorded its fourth straight day of losses for the first time since February. Gold futures closed with a drop of nearly 3%, suggesting that gold is no longer providing a haven for investors. Instead, a strengthening U.S. dollar is putting pressure on the commodity futures market and causing gold prices to give back their gains. Factors influencing this downturn in the markets included uncertainty over a worsening pandemic that could lead to renewed lockdowns, as well as ongoing debates over fiscal stimulus.
BTC, which has recently been correlated to equities, was not spared — plunging 4.75% overnight. The market-leading cryptocurrency broke below the key short-term support at $10,600, which significantly undermines its short-term bullish trend.
All of the major altcoins, except for OKB, have underperformed against BTC in the last 24 hours. Polkadot (DOT) dropped the most out of the top 10 altcoins and is down more than 14%. DOT has fallen from $6.40 at the beginning of the month to below $4.00.
The price of Ether (ETH) plunged 8.34%. Other major altcoins saw declines from 5% to 8%.
The decentralized finance sector continued its weak weekend run and is searching for support to the downside. Yearn.finance (YFI) is down 50% from its September high of $44,000. Uniswap (UNI) is back below $4 after three consecutive trading days of declines — having peaked at $8.80 last Friday.
The total cryptocurrency market capitalization suffered a plunge of 6.3% to $330 billion, as per data from CoinGecko. Meanwhile, BTC dominance jumped to 57.9%.
Top altcoin gainers and losers
- MOF/USDT +24.78%
- CNTM/USDT +17.90%
- APM/USDT +17.19%
- TAI/USDT -24.52%
- WING/USDT -27.35%
- RIO/USDT -32.66%
There are still some small altcoins that are independently trending. Molecular Future (MOF) is up 24.78% overnight and has provided a 20% return over the past seven days. Connectome (CNTM) and apM Coin (APM) are also up 17.90% and 17.19%, respectively.
BTC technical analysis
BTC finally lost critical support at $10,600 during last night's global sell-off. It stopped falling after hitting as low as $10,300. There was a significant amplification in volume yesterday, indicating strong active selling pressure.
Also, today's rebound in gold futures was not good enough and could continue to put pressure on BTC. Intraday support is located around the $10,200 levels.
ETH technical analysis
As we noted in yesterday's Crypto Market Daily, if support at $355 is lost, the price of ETH is likely to take another dive to the previous low of $322. Overnight, ETH broke the important support of $355. The main support will be between $322 and $330.
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