Bitcoin futures data shows retail is cautious now despite long-term optimism
Positive news boosts crypto market sentiment
The wider cryptocurrency market is a sea of green for the second day in a row as fear slowly recedes.
The cryptocurrency market is continuing to maintain some bullish momentum after yesterday's upward surge. Its total capitalization has increased by 3.2% to $1.74 trillion, thanks to a 2.5% increase in the price of BTC and a 5% increase in the price of ETH. Meanwhile, DOT, LINK and MATIC have all seen double-digit percentage increases, per data from CoinGecko.
Factors helping drive cryptocurrency valuations higher include Elon Musk's Sunday tweet that Tesla would start accepting Bitcoin payments again “when there’s confirmation of reasonable (50%) clean energy usage by miners with a positive future trend," as well as hedge fund manager Paul Tudor Jones' statements that he "likes Bitcoin" and could "go all in on the inflation trades." Additionally, MicroStrategy is launching an at-the-market securities offering — presumably to fund the purchase of even more BTC.
The string of positive news has helped boost sentiment. Per multifactorial sentiment analysis from alternative.me, the Bitcoin Fear & Greed Index has increased by a whole 10 points since yesterday.
DeFi market pushes back toward $65 billion
The decentralized finance market is showing similarly bullish sentiment after increasing by roughly $2 billion since yesterday. Most major DeFi protocols have seen increases to their total values locked, with market-leading Aave adding more than 4%.
On the decentralized exchange front, Curve Finance continues to outperform by a slim margin after adding nearly 4% to its TVL — compared to a 2.4% increase for Uniswap's and a 2.14% increase for SushiSwap's.
Top altcoin gainers and losers: KLAY leads large-caps
- COVER/USDT +22.26%
- WGRT/USDT +13.69%
- MEME/USDK +10.50%
- DORA/USDT -7.54%
- QUN/USDT -7.63%
- GNX/USDT -8.54%
BTC technical analysis: Stalling where expected
The price of BTC has stalled somewhat at the expected area of resistance around 40,000 USDT. Traders will now look for the four-hour ribbon of exponential moving averages to act as support for a potential push up toward 47,000 USDT.
ETH technical analysis: Hard work ahead against BTC
The price of ETH has bounced against BTC but is currently running into an area of resistance at the four-hour EMA ribbon. With the area above also historically acting as a place of interest for traders, ETH may struggle to regain what was lost against the foremost cryptocurrency in the near future.
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