Academy Trading Ideas Article

Risk Intensifies as Trading Volume Fails to Match Price Increases — Crypto Market Daily

2020.06.24 Robbie Liu

The price of Bitcoin (BTC) is currently trading at around $9,650, per OKEx’s BTC Index Price, after rising slightly by 0.28% since the same time yesterday (7:00 am UTC). However, its trading volume fell overnight. 

The BTC quarterly future premium is sitting around $140, which leaves plenty of room for arbitrageurs. 

Bitcoin’s volatility, meanwhile, has continued its downward slide and is now at its lowest level since April 2020. With open positions still rising, the market may see some big movements at any moment — especially since a large number of options contracts, totaling roughly $1 billion, are due to expire on Friday.

Bitcoin’s seven-day volatility (BVOL7D). Source: TradingView

The Ethereum (ETH) ecosystem continues to thrive as Balancer begins to distribute BAL tokens on Uniswap, a decentralized exchange. The news pumped the price of ETH by 2.24% in the last 24 hours. 

Other large-cap cryptocurrencies also saw gains of more than 1%. 

ChainLink (LINK) was the strongest performer in the mid-cap range, gaining 8.6% overnight. However, it was rejected at the $5 resistance level and is currently running at $4.80. Algorand (ALGO), meanwhile, jumped nearly 7%. 

The total cryptocurrency market capitalization is up another 1.1% to $279 billion. Since altcoins generally outperformed Bitcoin, the market leader’s dominance dropped by 0.3% to 63.7%, as per data from CoinGecko.  

OKEx Token Index Board (as of 7 am UTC). Source: OKEx

Top gainers and losers

  • BNT/USDT +19.38%
  • NULS/USDT +19.03%
  • ZEC/USDT +12.44%
  • ORBS/USDT -9.27%
  • DGB/USDT -10.07%
  • WGRT/USDT -15.76%

DigiByte (DGB) made a correction today after pumping 31.74% yesterday. 

WaykiChain Governance Coin (WGRT) is the biggest loser. The altcoin dropped by 15.76%. 

Bancor (BNT) benefited from DeFi mania and gained 19.38%, topping the list. NULS (NULS) and ZCash (ZEC) also increased by 19.03% and 12.44%, respectively. 

BTC technical analysis

Bitcoin traders should still keep an eye on the $9,550 threshold today, as per OKEx’s BTC Perpetual Swap price. The first and foremost cryptocurrency’s price is testing this area at press time. Since buying volume did not pick up overnight, an intraday correction is possible. Traders with big long positions may consider offloading a bit if the $9,550 support level fails. 

OKEx BTC Quarterly Futures (BTCUSD0925) 1h chart. Source: OKEx

ETH technical analysis

After testing $250 today, the fast-rising price of Ether may carry more risks for traders. Intraday, ETH trading volume has not picked up with the price uptick — indicating that the bullish movement may be weak. We may also observe a bearish divergence on the hourly RSI, which would further indicate that a correction may be in the cards.

Traders may view $240 as a new support level to watch, replacing yesterday’s $237 threshold. On the upper end, $250 is still a big resistance in the midterm.  

OKEx ETH Perpetual Swap 1h chart. Source: 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.

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