GENERAL OVERVIEW
The past week was all about BTC again. Bitcoin is under the spotlight of investors for the approaching halving event, which is going to happen in about three days. Basically, at the moment the rest of the top projects can only wait and see.
Not only BTC was the best performer among top projects, it was also able to cross the 10,000 USD mark during the week. The last time that the 10,000 USD level was reached was last February.
Bitcoin reported a +12.01% increase w/w and closed the week at 9883 USD.
It has been now eight weeks since the last time that BTC reported a negative result in terms of weekly candles if the current one remains positive. After having touched a low of 3782 USD in March, the run has been nothing less than impressive.
Halving frenzy was not the only important driver of BTC’s performance during the past sevend days. From a technical point of view, a crucial event also happened. BTC was able to violate the dynamical resistance which originated on the all-time high of December 2017 and passed through all the relative price peaks. Currently, the crucial 10,000 USD level is being tested. If kept, the next stop could be around 11,000 USD, while BTC could on the other hand fall to 7,000 USD circa if the halving event disappoints bulls.
The week was also characterized by a record open interest of BTC future contracts, which reached a level of 400 million USD on the 7th of May. Institutional investors are taking positions on BTC, which is a news for a market traditionally dominated by retail investors. Institutions could give Bitcoin the boost it needs in order to continue its rally. Regardless, the feature testifies a growing interest for the biggest cryptocurrency.
The positive mood on BTC was not reflected in the other top projects, which underperformed during the week.
TOP PROJECTS
As already mentioned, BTC basically took all the attention of investors during the past seven days. The week was overall negative for the market, with the median performance in our 17-coins sample being -0.62% w/w.
Just seven projects out of seventeen were able to finish the week with a positive result and BTC was the only one finishing with a double-digit gain.
Apart from BTC, two projects were the best performers which were due for good results after a not so bright period, namely NEO (NEO) and Ethereum Classic (ETC). Both of them are platform projects and were outshined by other peers of the sector in the past week. Tezos (XTZ) and Cardano (ADA) took a breath in the past seven days, and investors went for relatively forgotten alternatives. NEO was able not to lose too much ground to BTC thanks to trading pairs featuring it being announced by the Poloniex Exchange. ETC benefited from the support of big miners to its upcoming Phoenix Hardfork. After some weeks of relative weakness, ETC could be a coin to monitor closely heading to the event.
On the other hand, DASH (DASH) has been the worst performer of the week in our sample with a -5.31 w/w negative result. It closed at 78 USD and is also the worst coin in the last 30 days according to the graph below.
Having a closer look to the graph, we must stress again how platforms are taking all the top spots in terms of returns, exception be made for BTC.
TECHNICALS
Differently from the previous weeks, top projects are not currently showing an homogenous positioning in terms of their trading range during the past seven days. BTC, NEO and Monero (XMR) are the best positioned and the overall situation is pretty balanced.
On a weekly basis, no coin is appearing to be in overbought territory according to RSI, nor in an oversold one. Ethereum appears to be in an interesting position according to both moving averages’ difference and MACD.
On the other hand, on a 30 days horizon, RSI is representing an overbought territory forseveral coins, with BTC leading the pack. However, MACD for Bitcoin is still representing an health positive trend going on.
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. The situation is pretty clear and depicts the already discussed focus of investors on BTC in the last few days in particular.
On a wider period, the situation does not change a lot even if ADA is showing some strenght relative to other altcoins.
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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 14:00 UTC on the 8th of May 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.
