Bullish pattern still in play for BTC heading into the weekend
Square’s BTC purchase news fails to push price above $11,000
Today's edition of OKEx Insights' Crypto Market Daily covers Bitcoin, Ethereum, altcoins and DeFi.
American financial services company Square announced Thursday that it purchased 4,709 BTC, worth approximately $50 million. The purchase is equivalent to 1% of its total assets. In response to the news, the price of BTC moved up quickly — rising from $10,600 to a high of $10,958, per the OKEx BTC Index price.
The total cryptocurrency market capitalization has risen 3.1% in the last 24 hours to nearly $350 billion, with several major altcoins outperforming BTC. Bitcoin Cash (BCH) and Ether (ETH) surged 5.01% and 4.08%, respectively. Chainlink (LINK) and Polkadot (DOT) also reaped 10% gains overnight.
Over the past week, events have driven almost all of BTC's ups and downs. The price is still oscillating in a narrow range between $10,400 to $11,000, and its realized one-month volatility has dropped to 35% — the lowest level since July 26, as per data from skew. Market participants have largely de-risked ahead of the presidential election in the United States.
Top altcoin gainers and losers
- YFII/USDT +52.37%
- YFI/USDT +37.68%
- UMA/USDT +25.85%
- PST/USDT -12.07%
- SFG/USDT -15.94%
- TRADE/USDT -20.52%
What caught the market's attention most overnight was the strong rebound in the decentralized finance sector. Yield farming vaults saw huge gains. Yearn.finance (YFI) reaped a 52.37% return, and its subsequent fork, DFI.money (YFII), surged 37.68%. Previously, YFI experienced a series of declines after making a recent high of $32,000 on Sept. 26. It reached as low as $12,288 before bouncing back.
BTC technical analysis
On the higher time frames, the BTC price continues to be supported by an uptrend line formed from May 10. The price move will come to the end of the current triangle pattern in the coming week.
On the lower time frames, intraday support moved up to $10,850 after yesterday's rise. However, the resistance at $11,000 still appears to be strong. Traders will be watching a divergence to form on the MACD indicator while price volatility is still low, as previous divergences on the one-hour chart have proven effective.
For a snapshot of the changing dynamics of BTC derivatives data, readers can jump to OKEx Insights' recently published Futures Friday article, which features a detailed analysis of derivatives trading indicators — such as the long/short ratio, open interest and quarterly futures premiums.
ETH technical analysis
ETH has risen sharply over the past 24 hours and has now entered a strong resistance area above $368. Since the volume is still not amplified, the price of ETH may potentially form a bearish divergence on the four-hour RSI indicator. The intraday support level is at $350.
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