GENERAL OVERVIEW
The past week was convincingly good for the cryptocurrency market, with all the top projects posting positive results. Binance Coin (BNB), Tezos (XTZ), Chainlink (LINK) and Ethereum (ETH) even posted a double-digit increase.
Altcoins in general, have overperformed Bitcoin again, but this time BTC was the main trigger for the good performance of the market. After it crossed 7000 USD on Thursday, indeed, all the market inverted an otherwise negative trend for the week. BTC posted a +3.86 w/w result and is trading at 7027 USD while we are writing.
Technically speaking, the upward violation of the 50-period daily moving average was very important, while we also find crucial for the definition of a clear uptrend the violation of the 99-period weekly moving average which is still acting as a resistance level.
Legacy financial markets have now consistently rebounded from the low and Bitcoin is mirroring that behavior in the last period. The strong price drop experienced by BTC in March could have been caused in part by investors liquidating very profitable positions in Bitcoin in order to cover losses coming from traditional markets. If that was actually the case, good performance of stocks can only help cryptos in this phase.
At the same time, the halving event is now only 25 days away. Investors looking at this could be one of the and BTC is approaching it at a price that is below its current production cost. A possible inflow of capitals approaching the event will provide the boost that the market needs in order to definitely overcome the recent weakness.
TOP PROJECTS
As already mentioned, the top cryptocurrency projects clearly overperformed BTC during the past week, as dominance keeps slowly but steadily falling. The week was overall clearly positive for the market, with the median performance in our 17-coins sample being +6.03% w/w.
The positive note for altcoins let us think that, if BTC halving event is what is driving the market up, at least it is not the only factor. Progress from the other top projects means that event-related speculation is accompanied by an improvement of perspectives on the overall market and blockchain technology.
Binance Coin(BNB) has been the best performer, with a +14.96% w/w performance leading to a close at 15.53 for our analysis period. Together with the generally improved mood of the market, the hosting of the Cartesi IEO later in the month could be another factor boosting the price, given that BNB coins are needed in order to participate in the event.
On the other hand, IOTA (IOTA) has been the worst performer of the week in our sample despite not registering a negative result. It closed at 0.155 USD with a +1.7% w/w performance. The coin still closed in positive territory and is still up more than 50% after falling under 0.10 USD in the middle of March, therefore there is no need to worry at this point.
In a wider period, LINK and XMR keep being the best performers.
TECHNICALS
As expected from our previous analysis, all the coins are trading in the upper half of their past seven days’ trading range, with IOTA being the nearest to the middle.
On a weekly basis, none of the coins appears to be in overbought territory and MACD is starting to invert toward an uptrend indication, as well as the majority of the differences between moving averages.
On the other hand, on a 30 days horizon, MA50 and MA200 are still not providing a buy signal, despite all of the projects being on the upper half of their price range and with only Bitcoin Cash (BCH) signaling relative weakness. A couple of projects are also in overbought territory, namely XTZ and LINK, which is there for the longest time. MACD is still in a positive setting all over the spectrum.
We proceed to have a look at the frequency distributions of the coins’ price in terms of satoshis to have a look at the relative performances. Bitcoin Cash (BCH) is showing some weakness with respect to BTC in the last 30 days, while Ethereum Classic (ETC) is again the weak link of an otherwise very good platforms group. XMR is joined by Tezos and Link as the project in the best shape versus BTC. However, on a shorter time horizon, IOTA did not confirm the improvements of the past week and Ripple (XRP) is somewhat worsening its relative position with respect to BTC, which appears to be in a good position against every currency project bar XMR.
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DISCLAIMER
The views expressed in this report reflect the analysts’
personal views about the cryptocurrencies subject of the
report. These views may change without notice and are
subject to market conditions. The report is prepared for
information purposes only and by no means constitutes a
solicitation to investment or disinvestment. All the data are
taken from Binance at 15:00 UTC on the 17th of April 2020. USD
and USDT are used interchangeably for illustration purposes.
All the presented valuations, indicators, and analyses are
subject to errors. The report is for personal use only and should
not be republished or redistributed.
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