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OKEx Insights Crypto Market Daily DeFi Ethereum Bitcoin

Crypto buyers step in, capitalize on extremely fearful sentiment

2021.07.21 Adam James

With the European Union looking to further regulate crypto assets and market sentiment near all-time lows, buyers have stepped in. 

The cryptocurrency market is rebounding today after buyers defended the yearly open for BTC, which is up nearly 7% over the past 24 hours. Strong performances from the likes of ETH, ADA, DOGE, DOT and SOL have helped increase the total global crypto market cap by roughly7%, per data from CoinGecko.

The cryptocurrency market is a sea of green — though, yesterday's winner, LEO, is down on the day. Source: Coin360

Driving the crypto market rebound may be the news that FTX — a cryptocurrency exchange and competitor to OKEx — closed a $900 million Series B funding round.

EU may apply FATF travel rule to crypto transactions

However, sentiment in the Bitcoin market has taken a dramatic hit since yesterday. Per multifactorial crypto market sentiment analysis from alternative.me, participants in the market are nearly as fearful as they have ever been.

The Bitcoin market is extremely fearful. Source: alternative.me

Perhaps driving the fear is the European Union's continued push to regulate cryptocurrencies. Specifically, the European Commission made public a draft yesterday that would apply the Financial Action Task Force's "travel rule" to crypto assets — meaning virtual asset service providers would be required to share sender and recipient information for transactions greater than 1,000 euro.

NFT marketplace OpenSea becomes latest crypto unicorn

In the nonfungible token sphere, marketplace OpenSea has become the latest crypto-related unicorn after completing a $100 million Series B funding round — putting its valuation at $1.5 billion. The funding round was led by Andreessen Horowitz, with participation from actor Ashton Kutcher and two-time NBA champion and superstar Kevin Durant.

Furthermore, OpenSea announced the expansion of its blockchain support by offering gas-free trades via Ethereum-scaling solution Polygon.

Top altcoin gainers and losers: MATIC surges, leads large-caps

  • TRUE/USDT +22.28%
  • MATIC/USDT +21.79%
  • XUC/USDT +19.31%
  • NDN/USDT -9.30%
  • LMCH/USDT -9.32%
  • ROAD/USDT -11.54%

MATIC is the top-performing altcoin with a market capitalization greater than $1 billion on OKEx today — per the exchange's default time settings — and the second top-performing altcoin overall. 

The surge in the price of Polygon's token may be a result of its new integration with OpenSea and the recent announcement of decentralized gaming spin-off Polygon Studios. 

MATIC is the top-performing major altcoin on OKEx today. Source: OKEx

BTC technical analysis: Capitulation delayed after buyers step in

After catching a bid, the BTC price has returned to the oft-visited area of historical support. As such, the market-leading cryptocurrency may trade inside this area for the foreseeable future — though, a breakthrough to the upside could spark a serious bullish rally. Failure to sustain buyers' interest in this area would open the door to a now-delayed capitulatory move.

OKEx's BTC/USDT 4h chart — 7/21. Source: OKEx, TradingView

ETH technical analysis: ETH looks set to push higher

The price of ETH is generally flat against BTC but appears interested in pushing higher against the foremost cryptocurrency. The descending resistance line of the larger descending triangle pattern may be tested in the coming days. Failure to do so would be decidedly bearish.

OKEx's ETH/BTC 4h chart — 7/21. Source: OKEx, TradingView

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OKEx Insights presents market analyses, in-depth features and 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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