Weekly Crypto Report, a tech-stocks like behavior for cryptos

GENERAL OVERVIEW

The past week was significantly negative for the cryptocurrency market. BTC price experienced some volatility and rebounded on its 100-periods daily moving average after falling consistently. All the top cryptos fell, with only Cardano (ADA) being able to report a positive result.

The sell-off was in part induced by some frenzy in the traditional financial markets as well, where tech stocks are trying to find a sound ground to trade after months of rally. In this phase, BTC and cryptocurrencies, in general, are showing behavior similar to tech-related securities after months in which gold was often brought up as the appropriate asset for a comparison..

BTC dominance is up again to 58%. Altcoins are suffering as stated in our other reports and the bulk of attention is caught by DeFi projects which are going to be the focus of another series of our reports.

Traditional financial markets are in a lateral and volatile phase as already mentioned. Positive developments from the US circa an extra fiscal stimulus from the government are not on sight given the stalemate of discussions between Democrats and Republicans, with markets struggling to find reasons to rise elsewhere.

Bitcoin had a negative week, closing the period with a price of 10’629 USD and a -2.48% performance w/w. The 100-period daily moving average acted as sound support during the week and the price keeps trading around it. If such resistance is going to be broken downward, we could expect a retest of the 10’000 USD level and of the 9’500 USD level afterward.

Overall, BTC still performed better than altcoins as represented by our indexes.

TOP PROJECTS

Just one of the top coins reported a positive result, with three of them reporting a double-digit loss. The median return was -6.45%, six points worse than the past week.

ADA was the best performer, reporting a +3.75% return w/w for a price of 0.095 USD per coin. Ada benefited among other news from the fact that Binance is going to list coin margined futures contracts for the ADAUSD cross among others.

Neo (NEO) was the weakest project of our group after being the best during the previous one, reporting a -15.96% performance w/w in order to close at 21.12 USD.

On a wider period, NEO still keeps the top spot in terms of return while LINK is still showing an abysmal risk/return ratio.

TECHNICALS

Looking at the last seven days’ prices, all the coins seem to be trading in the lower half of their price range. ADA and Chainlink (LINK) are the only exceptions, with the former in particular being in top shape.

On a weekly basis, we can see how the top coins are showing a negative setting in terms of moving averages’ difference even if the worst seems to be behind them at the moment. RSI and MACD are giving more conflicting signals. Looking at the situation of the last 30-days, the moving averages’ settings are looking better and MACD is possibly signaling a price inversion as well.

The situation on a monthly basis sees Monero (XMR) as the only coin trading in the upper half of its price 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. ADA and LINK confirm their relative health with respect to BTC, according to the situation stated above from price ranges. Likewise, XMR is the only coin that is trading clearly positively with respect to BTC in the last 30 days.

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 25th September 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