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Crypto Market Daily Institutional investment DeFi Ethereum Bitcoin

MicroStrategy buys BTC as fear re-enters crypto market and ETH longs for price discovery

2021.01.22 Adam James

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

The digital assets market is attempting to end the work week on a positive note. The total cryptocurrency market capitalization has decreased by a slight 0.2% over the past 24 hours, as per data from CoinGecko — though the market leader, BTC, has increased by 2.6% and is currently trading around 32,500 USDT on OKEx.

Various altcoins are experiencing stronger bounces. DOT, LINK and AAVE are up 8.7%, 10.1% and 13.9%, respectively. XRP, BCH and BSV, meanwhile, have all seen moderate declines.

The cryptocurrency market is trying to end the week on a positive note. Source: Coin360

MicroStrategy takes advantage of fearful market

The main driver behind BTC's increase today could potentially be due to the fact that MicroStrategy has once again made a major investment into the foremost cryptocurrency. The business intelligence firm announced the acquisition of 314 BTC for $10 million in cash at an average price of roughly $31,808 per coin. This purchase brings the firm's total BTC investment up to 70,784 coins.

MicroStrategy's buy comes at a time when sentiment in the cryptocurrency market shifted from greed to fear after a prolonged period of over-exuberance.

Sentiment in the cryptocurrency market shifted dramatically overnight. Source: alternative.me

DeFi market sits unchanged as Matic Network loses more TVL

The decentralized finance market remains largely unchanged from this time yesterday. The total value locked in DeFi has increased a negligible $0.04 billion over the past 24 hours, while Maker dominance has increased by a slight 0.1%, as per data from DeFi Pulse.

Peer-to-peer coverage market Cover Protocol is today's big winner, with a TVL increase of 19.24%. Matic Network, on the flip side, is once again among the biggest TVL losers, with a decrease of 9.44%.

Cover Protocol still has a long way to go in its quest to recover the TVL it lost in December 2020. Source: DeFi Pulse

Top altcoin gainers and losers: NDN leads altcoin surge 

  • NDN/USDT +79.06%
  • BAT/USDT +38.36%
  • MANA/USDT +35.98%
  • SNX/USDT -8.37%
  • BADGER/USDT -8.98%
  • LMCH/USDT -25.65%

NDN is the top performer on OKEx for the second day in a row with an impressive gain of over 79%. Other notable winners include hot tokens like BAT, MANA, GRT, AAVE, SUSHI and 1INCH.

BAT is among the top performers on OKEx today. Source: OKEx

BTC technical analysis: Bouncing into resistance checkpoint

BTCUSDT on OKEx has bounced strongly after yesterday's aggressive sell-off. However, it will immediately face resistance now in the form of the ribbon of exponential moving averages on the four-hour time frame, as well as the recently relevant level of 33,000 USDT. Surging through this checkpoint could set the stage for an optimistic weekend. Failure here, however, could refresh bearish sentiment.

OKEx's BTC/USDT 4h chart — 1/22. Source: OKEx, TradingView

ETH technical analysis: ETH longing for price discovery

The ETHUSDT pair on OKEx is a similar story. The price has bounced strongly and is now only facing resistance in the form of the four-hour EMA ribbon. Breaking through here and flipping the ribbon into support could set the stage for another push past previous all-time highs and into price discovery.

OKEx's ETH/USDT 4h chart — 1/22. 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.