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Bitcoin Ethereum DeFi Crypto Market Daily OKEx Insights

Cryptocurrency market under pressure after new all-time high for ETH

2021.01.20 Adam James

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

The digital asset market is under pressure today as sellers are attempting to push valuations down. 

The total cryptocurrency market capitalization is currently down 5.2% over the past 24 hours, as per data from CoinGecko, while BTC is down a similar percentage at 5.4%. Yesterday's darling, ETH, is down 6.9% while DOT and LTC are down 9.3% and 9.4%, respectively. BTC dominance, meanwhile, is currently 64.3%.

The cryptocurrency market is under pressure from sellers today, sparking widespread declines. Source: Coin360

Sellers are likely taking advantage of an injection of bearish sentiment following the United States Treasury secretary nominee Janet Yellen's statements yesterday that Bitcoin and cryptocurrencies are "mainly" used for illegal activity and illicit financing — despite hard data proving otherwise.

The longest period of "extreme greed" for crypto on record

The cryptocurrency market is long overdue for a correction — at least, in terms of sentiment.

According to the Crypto Fear & Greed Index, a popular sentiment tracker, the digital asset market has been exhibiting signs of "extreme greed" since at least November 2020 — the longest period of such sentiment on record.

The Crypto Fear & Greed Index has maintained levels of "extreme greed" for months. Source: alternative.me

DeFi market skims froth off the top amid correction

As is only natural, the decentralized finance market has not been spared by industry-wide sellers, and the froth mentioned in yesterday's Crypto Market Daily is being discarded. 

The total value locked in DeFi has decreased from yesterday's $24.77 billion to today's $23.35 billion, as per data from DeFi Pulse. Maker dominance, however, has remained virtually unchanged at 18.46% — a negligible difference of only 0.01% from yesterday's reading.

The biggest losers in terms of total value locked are currently lesser-known projects, including:

  • RAY: -52.77%
  • PerlinX: -28.07%
  • Melon: -21.93%

Among the top decentralized exchanges, Curve Finance has seen the slightest decrease in TVL with a drop of only 1.82%. Uniswap and SushiSwap, meanwhile, have seen decreases of 5.78% and 9.24%, respectively.

The total value locked in DeFi projects has decreased by more than $1 billion over the past 24 hours. Source: DeFi Pulse

Top altcoin gainers and losers: OKT up more than 9% 

  • GTO/USDT +49.15%
  • HBAR/USDT +31.00%
  • PMA/USDT +13.00%
  • MEME/USDT -13.11%
  • XSR/USDT -18.70%
  • LMCH/USDT -21.83%

The best and worst performers on OKEx today are relatively lesser-known altcoins. Further down the list of winners are MANA and OKT, which have seen gains of 10.67% and 9.32%, respectively. 

OKT is up more than 9% over the past 24 hours. Source: OKEx

BTC technical analysis: Sellers currently in control after lower high

The price of BTC is showing signs of exhaustion today after sellers successfully forced the foremost cryptocurrency into putting in a lower high. It is currently trading below the ribbon of exponential moving averages on the four-hour time frame as bid support gets tested.

OKEx's BTC/USDT chart — 1/20. Source: OKEx, TradingView

ETH technical analysis: Holding up better than BTC

The price of ETH is currently testing the four-hour EMA ribbon for support after finally breaking its old all-time high yesterday. Failure to find support at the ribbon could see the price fall toward 1,120 USDT in the short-term. In that case, bulls may start to worry about a long-term double-top formation.

OKEx's ETH/USDT 4h chart — 1/20. Source: OKEx, TradingView

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

Follow OKEx Insights on Twitter and Telegram.

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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