Weekly Crypto Report, BNB escapes from BitMEX-induced volatility

GENERAL OVERVIEW

The past week was mildly negative for the cryptocurrency market. BTC price experienced some news-induced volatility during the last days of the period but the performance was not significantly in the red overall.

The sell-off was induced by criminal charges being brought by American authorities against BitMEX, one of the world’s largest cryptocurrency exchanges. Allegations regarded money laundering and illegal transactions and the poor efforts on behalf of owners and executives of the exchange in order to limit such practices. The whole cryptocurrency market was hit by the news, even if the induced movement was limited at the end of the day. It is never good news when the crypto world deals with the law in such a manner and we can expect more volatility if further developments are going to come out.

The week also featured the first US presidential debate on Tuesday and the news of US President Donald Trump testing positive for Covid-19, which was not well received by traditional financial markets. On the other hand, the cryptocurrency market did not seem to care that much.

Bitcoin had a negative week, closing the period with a price of 10’522 USD and a -1.18% performance w/w. The 100-period daily moving average acted again as a support but the rebound is still not strong at this point.

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

TOP PROJECTS

Five of the top coins reported a positive result, with three of them reporting a double-digit loss. The median return was -2.84%, three points better than the past week.

Binance Coin (BNB) was the best performer, reporting a +10.02% return w/w for a price of 26.90 USD per coin. The exchange has been able to ride the DeFi frenzy with success in the past weeks and this resulted in it gaining more than 30% of value in the last 30 days.

Neo (NEO) was the weakest project of our group after being the best during the previous one, reporting a -15.95% performance w/w in order to close at 18.137 USD.

On a wider period, BNB grabs the top spot in terms of return while Chainlink (LINK) is still by far the worst in terms of 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 apart from BNB.

On a weekly basis, we can see how the top coins are approaching a negative setting in terms of moving averages’ difference, while RSI and MACD are giving the opposite signal. Looking at the situation of the last 30-days, the moving averages’ settings are looking better but MACD is not convincingly positive overall.

The situation on a monthly basis sees Monero (XMR) as the only coin able to join BNB 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. Ripple (XRP) and EOS (EOS) are showing particular weakness with respect to BTC. On a wider period, EOS is joined by Tron (TRX) and Dash (DASH) in the weakest situation.

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 2nd October 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