GENERAL OVERVIEW
The last week was a bad one for the crypto market, which registered negative returns for all the projects in our sample. Thanks to a comeback in the last day limiting damages, none of the coins finished with a double-digit loss.
We observed several weeks of good mood for the cryptocurrency market, with altcoins gaining ground on BTC while the latter was trying to push over 10’000 USD. This week, legacy financial markets spoiled the party.
On Thursday, traditional financial markets rediscovered the bad side of volatility after a bull run going on since the lows of March. This negative performance was mainly due to the negative tone of the FED message of Wednesday, which cooled down the hopes for a fast recovery of the general economy from the Covid emergency. We already saw in March cryptocurrencies involved in a phenomenon of general markets crash. This time we saw a similar behavior, which also doesn’t offer support to the idea that Bitcoin can be seen as a some sort of safe-haven asset from investors. On the contrary, BTC fell together with the other risky asset classes.
Bitcoin had a good week, closing at 9’415 USD, down 3.06% w/w.
From a technical point of view, BTC rebounded on Thursday on the fast 7-period weekly moving average and is therefore still preserving the uptrend going on since March. The rebound reabsorbed basically half of the downward movement and is at the moment a good sign for a cryptocurrency market that got us used to more significant crashes. It is also worthwhile to note how BTC keeps being within reach of the 10’000 USD level and is actually showing a good amount of resiliency.
Overall, top coins performed worse than BTC and this is reflected in our indexes below.
TOP PROJECTS
All in all, BTC overperformed the vast majority of the coins we cover in this report. But there was a significant exception, namely Ethereum (ETH).
We already mentioned how all the projects reported a negative result. It is also interesting to note how some of the most succesful coins of the past weeks in terms of performance were among the worst performers this week, Cardano (ADA) and IOTA (IOTA) above all.
ETH posted the best result, finishing the seven days period with -2.30% w/w and a price of 236.27 USD. It is the first time since we start our weekly reports that ETH is able to secure the first spot and it is no coincidence that this happened in a negative week for the market. Ethereum is the second biggest project in terms of market capitalization and it is experiencing similar dynamics to BTC in case of a market crash, i.e. it shows more resiliency.
On the other hand, Stellar (XLM) was the worst project in our sample, losing 8.85% of its value during the week after its hard fork.
In a wider period, ADA is still offering the best performance, while ETH catches the second best performer place among the coins we cover following the performance of this week.
TECHNICALS
Looking at the last seven days’ price range, the downward movement resulted in a pretty significant shift which led all our coins to trade in the lower half of their 7-days range.
On a weekly basis, the majority of the coins are in overbought or nearly overbought territory according to RSI after the fast rebound. Moving averages difference is signaling a negative setting on the other hand.
On a monthly basis, ADA and Cardano are the only coins clearly trading in the upper half of their range.
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. IOTA is showing some weakness after the strenght of the past week.
In a wider period, Ethereum is clearly trying to establish its current level as a fair onw with respect to BTC.
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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 12th of June 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.
