GENERAL OVERVIEW
The past week saw another milestone in the history of space exploration, with the Perseverance rover landing on Mars amidst the enthusiasm of NASA and the entire world. Getting “to the moon” is surely a well-known expression in the crypto world. At this point, we can safely say that BTC has traveled far beyond that. Perseverance was a necessary quality for any cryptocurrency investor between 2018 and 2020, and it finally paid off. Bitcoin broke even the 50’000 USD level this week after a couple of days of “flirting” and the trend shows no sign of weakening. Conversely, altcoins are widely following the uptrend, and adding fuel to the rally.
The whole market capitalization is now north of 1.6 trillion USD, making it very difficult for all kinds of investors to ignore BTC as an asset and pushing forward both the market valuation and adoption at the same time. While it is not realistic to think that BTC is going to rise forever, at the current price it looks like the valuation is not that stretched according to several models like the stock-to-flow one. There is still a margin for demand to increase and it is particularly interesting to see how companies are increasingly looking at BTC for liquidity management purposes. Tesla was the first of its kind but there are increasing rumors that wee Apple and/or Amazon following the trend.
As already mentioned, BTC was able to break the 50’000 USD level and actually closed the week at an all-time high price of 53’863 USD for a more than 13% increase for the period. 50’000 was obviously representing an important resistance level, therefore the technical setting keeps looking good as it is for months now. The daily RSI is now flashing an overbought setting, but it honestly looks like the current trend is far from ended.
Overall, altcoins even overperfomed BTC as represented by our indexes.
TOP PROJECTS
All but two of the cryptos we cover reported positive results. The median return was +14.57%, which is absolutely impressive from a historical perspective.
Binance Coin (BNB) has been the best performer, reporting a +129% return w/w for a price of 311 USD per coin. Binance is obviously benefiting from the increasing interest in cryptocurrencies both from retail and institutional investors and the coin is now third in terms of market capitalization among all cryptos. The exchange is a fundamental reference point for everyone approaching cryptos and BNB valuation reflects the potential development of the crypto market as well as the value of a project that already has a clear path in order to extract profits from it.
Ripple (XRP) was the last crypto in terms of return. It reported a -6.02% performance w/w in order to close at 0.54 USD.
On a wider period, BNB looks even more impressive, overperforming its peers with a positive performance of over 700% in the last 30 days.
TECHNICALS
Looking at the last seven days’ prices, apart from BTC, Ethereum is the coin whose uptrend is strongest at the moment, having basically experienced no correction. The overall situation looks however great.
Looking at technicals, on a 30-days setting, an overbought setting is flashing for basically all the projects. MACD and Moving Averages’ difference, however, still depict a positive framework overall.
On a monthly basis, Bitcoin and Ethereum are the coins trading nearest to the upper bound 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. BNB is trading very far from its “normal” levels being its uptrend in full swing.
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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 13th November 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
