Bitcoin and Hi-cap Altcoins Bump, Run Into Hard Resistance

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A strong relief bounce has come in for Bitcoin (BTC) after its breakdown from the previous October market structure. It remains to be seen whether this bounce is strong enough to finally break the Bitcoin downtrend that has been driving price down since July; but meanwhile, altcoin market share is continuing to grow versus Bitcoin, which was recently pushed back below the historically high 70% mark. This has translated lately into many altcoin surges.

OKB

OKEx’s exchange token OKB took a nasty tumble in the past two weeks, riding Bitcoin’s tail down for almost 50% loss in USD value. This is because OKB/BTC has followed Bitcoin itself, moving down *with* it, in a behavior that is typical of altcoins – very few have been lately moving inversely to Bitcoin. OKB’s fiat losses are thus multiplied by BTC’s losses versus fiat.

Looking at a 3-day OKB/USD chart, we can see the aggressive selloff that has taken place. This selloff unfortunately took out an important price zone at $2.40, and with it an obvious uptrend. Price was held in previous resistance and a strong buy wick has pushed it back up.

OKB chart by Charts.Cointrader.Pro

This chart looks pretty similar to Bitcoin’s; and thus, like with Bitcoin, OKB/USD may have entered a downtrend. But the very strong defense wick that came in at around $1.77 to push the candle back up says otherwise.

We don’t see any strong divergence on the daily RSI (it is too close to call), but the histogram is strongly contracting up at present. Most of this price action is Bitcoin-driven, so we also have to take a look at the OKB/BTC charts to get an idea of what’s going on.

Looking on a daily OKB/BTC chart, we see a slightly better picture than versus USD – although even here, we could see a rejection at the support recently lost. It is slightly better because…

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