First Mover Asia: Bitcoin, Ether Regain Ground Sunday After Early Weekend Battering
By James Rubin, Damanick Dantes
But investors are still unclear whether crypto will continue to follow trends in equity markets or is an uncorrelated asset.
Market moves: Bitcoin was trading at over $36,000 on Sunday after continuing its recent decline earlier in the weekend.
Technician’s take: BTC is stabilizing on intraday charts, although $30,000 is a more significant level to watch given the decline in long-term momentum.
Prices
Bitcoin (BTC): $36,202 +3.4%
Ether (ETH): $2,532 +5.4%
Top gainers
| Asset | Ticker | Returns | Sector |
|---|---|---|---|
| Cosmos | ATOM | +3.4% | Smart Contract Platform |
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Top losers
| Asset | Ticker | Returns | Sector |
|---|---|---|---|
| Internet Computer | ICP | −9.2% | Computing |
| Litecoin | LTC | −9.2% | Currency |
| Filecoin | FIL | −9.0% | Computing |
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Sector classifications are provided via the Digital Asset Classification Standard (DACS), developed by CoinDesk Indices to provide a reliable, comprehensive, and standardized classification system for digital assets. The CoinDesk 20 is a ranking of the largest digital assets by volume on trusted exchanges.
Markets
S&P 500: 4,397 -1.8%
Nasdaq: 13,768 -2.7%
Gold: 1,834 -0.2%
Market moves
Bitcoin capped a forgettable three days, dipping below $34,400 at the start of the weekend, before mounting a small comeback on Sunday.
The tech-heavy Nasdaq fell 2.7% on Friday as investors continued to veer away from stocks that led recent years’ charge in stocks. Two other major indexes, the Dow Jones Industrial Average and S&P 500 fell 1.3% and 1.8%, respectively. The market slump has stemmed from widespread concerns about interest rates, supply chain inefficiency and the ongoing coronavirus, which has been gathering strength in many parts of the U.S. even as it wanes in others.
Ether dipped below $2,400 on Saturday before returning to a base camp above that level, where spent the remainder of the weekend. At the time of publication, the second largest crypto by market cap was trading above $2,500, an almost 5.5% rise. Most of the major altcoins spent Sunday in the red.
“The market is holding its breath as investors look to the opening of the Asian markets for a sign of what equities will do this week,” Joe DiPasquale, the CEO of crypto fund BitBull Capital told CoinDesk. “If Asian markets open strong, we can expect demand for crypto to go up, and even more so if the U.S. markets have a strong Monday.
Technician’s take
Bitcoin Sell-Off Deepens Below $40K; Minor Support Nearby
Bitcoin (BTC) failed to hold short-term support at $40,000 as sellers maintained the two-month long downtrend.
Intraday oversold signals were not enough to sustain bids, which means longer-term indicators are more reliable to determine bitcoin’s price direction.
The slowdown in upside momentum on monthly and weekly charts has been a persistent theme since December. As the long-term uptrend weakens, sellers typically outweigh buyers despite occasional oversold signals.
Further, when drawdowns (percent decline from peak to trough) become severe, short-term traders tend to reduce their position sizes and tighten trade parameters around intraday support and resistance zones.
Bitcoin is roughly 40% below its all-time high of $69,000, which is a significant drawdown. The previous drawdown extreme was in July when BTC settled near $28,000 after falling roughly 50% from its peak.
If selling pressure accelerates this week, BTC could find stronger support around $30,000.
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