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Crypto market flips from fear to greed after BTC bounces

2021.03.02 Adam James

The DeFi and cryptocurrency markets are rallying off the back of renewed optimism for BTC.

The digital currency market is rallying today off the back of a 3.7% increase for its leader, BTC. The total cryptocurrency market capitalization is up by an even 5%, as per data from CoinGecko, and now sits near $1.55 trillion. 

The total cryptocurrency market capitalization is nearly $1.55 trillion. Source: CoinGecko

In turn, nearly all major altcoins are seeing increases against fiat currencies — with the notable exception of ADA, which has performed exceptionally well over the past seven days but is down 2.6% today.

The wider cryptocurrency market is in the green today, with ADA being the most notable exception. Source: Coin360

Sentiment in the cryptocurrency market has seen volatile swings over the past few days. 

After maintaining levels of extreme greed for months on end, participants became fearful yesterday morning after some sustained pressure from sellers devalued the wider market. 

However, sentiment has immediately bounced back into extremely greedy territory, according to multifactorial crypto market sentiment analysis from alternative.me.

Sentiment in the cryptocurrency market has swung from a place of fear to a place of extreme greed in 24 hours. Source: alternative.me

DeFi recovers alongside wider cryptocurrency market

The decentralized finance market is recovering alongside the rest of the cryptocurrency market. Its total value locked now sits at $39.14 billion — as per data from DeFi Pulse — as Maker, Compound, Synthetix and Balancer all see impressive additions to their TVLs.

The race among the top decentralized exchanges is tightening. Top-ranked Curve Finance is up slightly less than both second-place Uniswap and third-place SushiSwap, in terms of 24-hour TVL increase, while all hold more than $3 billion. The gap between Curve Finance and Uniswap is currently only $0.24 billion, with the former holding $3.94 billion and the latter holding $3.70 billion.

The total value locked in DeFi is attempting a recovery early this week. Source: DeFi Pulse

Top altcoin gainers and losers: BADGER claws back 16%

  • SFG/USDT +23.49%
  • CTC/USDT +19.07%
  • BADGER/USDT +15.97%
  • ARK/USDT -11.54%
  • FAIR/USDT -12.29%
  • SBTC/USDT -13.07%

Bitcoin-focused DeFi protocol Badger DAO's token, BADGER, is the third-best performing altcoin on OKEx today, while the new Aavegotchi token GHST sits in fifth place. Other notable performers include POLS, XEM, CRV, THETA and BCHA.

BADGER is a top performer on OKEx today after increasing by more than 15%. Source: OKEx

BTC technical analysis: BTCUSDT attempting to push higher

As noted in the official OKEx Markets channel on Telegram earlier this morning, there are some signs that sellers may be afraid to chase the BTC price rebound. As of right now, the market-leading cryptocurrency is testing a key area of support, which comes in the form of the ribbon of exponential moving averages on the four-hour time frame.

The previous all-time high of 58,000 USDT may feel far away for some BTC traders, though it remains difficult to be bearish from a fundamental standpoint.

OKEx's BTC/USDT 4h chart — 3/02. Source: OKEx, TradingView

ETH technical analysis: ETHBTC trying to turn bullish

ETH is still struggling to gain bullish momentum against the foremost cryptocurrency, BTC. The four-hour EMA ribbon continues to act as an area of resistance, though ETHBTC is currently attempting to chew through it. A key area of resistance remains above around 0.03861 BTC.

OKEx's ETH/BTC 4h chart — 3/02. 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.