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US GDP Shock Fails to Damper Markets — Crypto Market Daily

2020.07.31 Robbie Liu

The United States GDP shrank 32.9% in the second quarter — the biggest drop since the Great Depression. However, the market had already been expecting such a result. Stocks in the U.S. ended Thursday’s session in a narrow consolidation pattern. The Nasdaq Composite Index rose a slight 0.30% and the S&P 500 Index fell 0.48%. Gold futures closed down on Thursday after rising for nine consecutive trading days. 

Meanwhile, the crypto market is in the midst of a rebound. The total market capitalization rose 2.1% to $335.7 billion. Meanwhile, Bitcoin’s dominance remains at 61.2%, according to data from CoinGecko

Bitcoin (btc-usd" target="_blank">BTC) bounced back quickly after testing support at $10,800 and is currently trading around $11,150, as per the OKEx BTC Index price. At the same time, large-capitalization coins generally outperformed BTC. Ether (ETH) surged 5.62% in the last 24 hours and hit another recent high of $343 yesterday at around 8:00 pm UTC.

Litecoin (LTC) has maintained a good pace and is up 3.79%. LTC is one of the best performers among large-capitalization coins over the last 30 days, having surged more than 25%. 

The price of Chainlink (LINK) spiked again, rising 7.87% and returning to the $7.80 level. 

In the decentralized finance arena, we have seen some good recoveries among top projects. Bancor (BNT) rallied 30% in the last 24 hours. Meanwhile, yearn.finance (YFI) rose 5.5% and jumped above the $4,400 level. 

Overall, the cryptocurrency market remains in an optimistic mood, and pullbacks have been modest.

OKEx Token Index Board as of 8:00 am UTC on 7/31. Source: OKEx

Top gainers and losers

  • VIB/USDT +36.13%
  • BNT/USDT +29.89%
  • ARK/USDT +12.86%
  • DMG/USDT -6.65%
  • BAL/USDT -12.22%
  • APIX/USDT -13.70%

Taking advantage of Bitcoin’s rebound, small-capitalization altcoins are breaking out. Vibrate (VIB) gained 36.13%. ARK, at the same time, rose 12.86%. 

The biggest loser today is APIX, which is down 13.70%.

BTC technical analysis

The pullback over the past 24 hours has been minor, with BTC only testing the $10,850 level. Bitcoin is still trading in a range of $10,670 to $11,300. The short-term threshold is located at $10,670 with no change. 

On the hourly chart, Bitcoin is moving in an ascending triangle pattern — which could lead to another rally if the price breaks the horizontal resistance line of $11,300. However, the risk of a false breakout still needs to be guarded against, as the current trading volume is low.

OKEx BTC Perpetual Swap 1h chart – 7/31. Source: OKEx, TradingView

ETH technical analysis

ETH is currently stronger than BTC. After a brief consolidation, it made a new high yesterday. If the bullish momentum can continue today, it has a great chance of testing $344 again. An intraday support level is around $328. 

OKEx ETH Perpetual Swap 1h chart – 7/31. 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.

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