x

Copied

Share articles to

Academy Trading Ideas Article
Bitcoin Ethereum Crypto Market Daily

Not-Unexpected Bitcoin Fakeout Shakes Cryptocurrency Market — Crypto Market Daily

2020.08.19 Robbie Liu

The cryptocurrency market underwent a sell-off over the past 24 hours — with every top-10 large-capitalization cryptocurrency in the red. The price of Bitcoin (BTC) fell 3.65%, dropping from $12,300 to as low as $11,617, according to OKEx's BTC Index Price. Still, the market-leading cryptocurrency actually outperformed most large-capitalization altcoins, which were generally down 4%–8%. 

For example, Chainlink (LINK), which attracted all of last week’s attention, fell by 7% overnight. It was the third straight trading day of declines for LINK, falling from $17 to $15 before stabilizing. Chainlink’s DeFi dominance declined from Sunday's 51% to 46.85%, as per Debank's data

Meanwhile, we saw the price of YFI spike last night. It has been trading around $11,000 after five straight days of gains — which brought its DeFi dominance up to ninth place, at 2.56%.

TRON (TRX) caused some chaos after rushing the launch of its Uniswap-alternative project, JUSTSwap, yesterday. It is down 12% overnight. Some of TRON’s ecosystem project developers made a mistake by incorrectly locking 200,000 USDT worth of TRX in the contract address, which resulted in a failure to add funds to the liquidity pools.

Yesterday at 4:39 pm UTC, Polkadot network's native token, DOT, officially landed on its mainnet — enabling the function of on-chain transfers. The activation of this function is akin to opening the floodgates for DOT and, as a result, the price of DOT fell from $373 to $290 within an hour.

Mid-cap altcoins generally saw 8%–10% declines, such as Kyber Network (KNC) and QTUM — with the only exception being THETA, which bucked the trend by rising 9%. 

The total cryptocurrency market capitalization tumbled 3.7% to fall below $380 billion. Meanwhile, BTC dominance remained at 57.8%, as per data from CoinGecko.

Price board of top cryptocurrencies
OKEx Token Index Board as of 8:00 am UTC on 8/19. Source: OKEx

The drop over the past 24 hours actually had some early indicators that it might happen. First, as we noted in yesterday's Crypto Market Daily, the aggregated open interest of BTC futures reached an all-time high of $5.8 billion. Secondly, the funding costs of BTC perpetual swaps reached over 100% annualized — suggesting that, if the price did not move up quickly, the longs would pay extremely high fees to maintain their positions. Right now, we may see the price of BTC stay below the $12,500 critical level for an extended period of time. 

While yesterday's potential fakeout of $12,000 has once again shaken market participants' bullish sentiment, the amount of Bitcoin that can be easily thrown around is actually not that great, according to the amount of BTC held in all exchanges' wallets, as per data sourced from CryptoQuant.

BTC held in all exchanges' wallets
The amount of BTC held in all exchanges' wallets. Source: CryptoQuant

Top altcoin gainers and losers

  • KCASH/USDT +49.55%
  • CRV/USDT +40.81%
  • DIA/USDT +28.48%
  • ROAD/USDT -15.50%
  • DOT/USDT -15.54%
  • ZIP/USDT -15.60%

For the third consecutive day, KCASH made the list of top altcoin gainers. It is up 49.55% over the last 24 hours and made a recent high of $0.048. 

Yesterday's biggest loser, Curve (CRV), made a reversal overnight. It is up 40.81%. 

The newly listed Decentralised Information Asset (DIA) realized a 28.48% gain since its listing. 

We haven’t seen any particularly huge declines among altcoins so far today, with all top losers — ROAD, DOT, and Zipper Network (ZIP) — down around 15%.

New Listings on OKEx

Decentralised Information Asset (DIA) was listed on OKEx for spot trading yesterday. 

Moreover, Kleros (PNK) was listed on OKEx for PNK/USDT and PNK/ETH spot trading today. PNK increased by more than 80% after its listing. 

BTC technical analysis

Yesterday's false breakout had a big impact on trader morale. It is most detrimental to the short- to mid-term pattern. The resistance level at $12,080 is an intraday threshold. If the BTC price cannot break this level, $11,650 could be the next support level to watch. Another mid-term threshold is located around $11,200. 

OKEx BTC Perpetual Swap 1h chart – 8/19. Source: OKEx, TradingView

ETH technical analysis

ETH’s previous support at $416 flipped into an intraday resistance level. There is stronger support below, at $400. If the ETH price can overcome the intraday resistance, the next barrier is located at $430. 

Ethereum price chart - August 19
OKEx ETH Perpetual Swap 4h chart – 8/19. Source: OKEx, TradingView


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.


OKEx Insights presents market analyses, in-depth features, original research & 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.

Recommended

trading-ideas-en