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29 mai 2019

Crypto Broker Weekly Rotation Report CW 22

Yara Ainsworth

Yara Ainsworth

Responsable Marketing & Communications chez Crypto Finance AG

A propos de l'auteur

This is our Crypto Broker Weekly Rotation Report, directly from the Crypto Broker trading floor, with extensive insights into the crypto asset market, including quantitative data analysis, macro market comments, technical chart analysis, and rotation (sector) analysis. A PDF version of the report can be found at the bottom of this page.

Should you wish to receive this weekly report by email, you may subscribe below.

Contents

1 Rotation Analysis

2 Market Analysis

3 Top Ten Comparison

4 Volatility and Correlation Comparison

5 ETHBTC 4h Technical Chart Analysis

6 Market Cap Overview

Glossary

1 Rotation Analysis

Some altcoins are performing nicely against Bitcoin.

I know, it does not feel like it and when you follow Crypto Twitter you do not get the typical vibes of an alt-season. But when looking at the raw data we have some nice outperformances on the board. For example EOS with +15%, Litecoin with +14%, Tron with +8% or IOTA with +6%. Looking at the top 100 coins the performances start to converge after the 40th rank which is pretty balanced.

On our MACD lines (Figure 4) we still see altcoins pushing higher in both rank sectors (2-10 and 11-50). The advanced decline line is still very volatile, but the smoothed line (purple) is pointing upward nicely.

 

2 Market Analysis

Another week, another 2019 market capitalization high in the crypto universe. After a short breather around the $8,000 level, Bitcoin made another attempt to go higher to near $9,000. The bulls seem unstoppable at the moment as diverse technical indicators flash positive signals. While Bitcoin remains the main driver for any market impulse and holds on to a dominance level just shy of 60 percent, the altcoin space is not asleep either. Particularly EOS, the Ethereum rivalling platform, has outperformed with a spike of 15 percent on Monday to flip position with Litecoin and take fifth spot on the market cap charts. A big upcoming event hosted by Block.one on June 1 appears to be driving the momentum for EOS. The event will include an updated roadmap, a yearly product release cycle, and updates on the B1 social media dApp. Additionally, Block.one has registered the trademarks MEOS and XEOS around which further big announcements are expected. The launch of IOTA’s Coordicide website, indicating the plans and suggested solutions to shut down its coordinater, gave the much battered IoT-focused currency a lift.

The re-birth of crypto assets and recent headlines has encouraged formerly adverse players to show greater interest in the space. An increasing number of big industry players look at how blockchain and cryptocurrencies can be embedded into their daily business. AT&T Inc. said last week it will permit customers to pay bills with Bitcoin or Bitcoin Cash. Also, earlier rumours about Facebook working on a cryptocurrency called « Global Coin » became firmer with a BBC article describing a planned launch of a digital payments system in about a dozen countries in early 2020. Swiss exchange SIX is reportedly working on its own Stablecoin, which would be a cryptocurrency pegged to the Swiss Franc which is intended to facilitate transactions on the SIX Digital Exchange. Fidelity Investments, an often-discussed crypto-friendly institution, is said to finalise plans for an institutional offering to buy and sell digital assets. Big Four firm EY is apparently rolling out a free software designed to help corporate clients use the Ethereum Blockchain. Unlike others, EY’s software is intended to run on top of the public Ethereum network, instead of on a private one, which is certainly a promising approach by EY and backs the original idea of blockchains – decentralisation. And finally, Microsoft supports crypto adoption with its addition of Bitcoin as a currency option in Excel.

 

3 Top Ten Comparison

Table 1: Data source: Coinmarketcap; change to last week in parentheses

 

Table 2: Data source: Coinmarketcap; change to last week in parentheses

 

4 Volatility and Correlation Comparison

Figure 1: Volatility comparison; Data source: Coinmarketcap

 

Figure 2: Correlation comparison; Data source: Coinmarketcap

 

5 ETHBTC 4h Technical Chart Analysis

Figure 3: Data source: Bitfinex; Chartsystem: Tradingview

This pair is pretty boring, unlike the rest of the crypto market.

Currently we are trading at the level we were a week ago. In general, we do not see any significant change to our call from last week. What can be said, is that the Ichimoku cloud seems to provide decent support. The price is hovering above the upper band of the cloud.

This indicates a slightly more bullish scenario with a possible target of the large liquidity pool higher up at around 0.033000. Other than that, there are no clear indicators for the next big move.

Compared to our other indicators, the ETHBTC pair shows the least conviction for an altcoin rally.

 

6 Market Cap Overview

Figure 4: Market capitalisation overview; Data source: Coinmarketcap

 

Glossary

Advance Decline Line – the Advance Decline Line shows the ratio of coins for which the market cap increased relative to the market cap of BTC for each day.
ATH – all time high (maximum lookback period of 730 days).
Data Source – tables and charts are based on daily close prices provided by Coinmarketcap.
EWMA – exponentially weighted moving average.
MACD – moving average convergence/divergence is a popular technical indicator to identify trends in the underlying instrument. It consists of the MACD and signal line, and the area shown in the background. The MACD line (strong) is the difference of two exponential moving averages, which are defined by the first and second parameter of the indicator. The signal line (weak) is the exponential moving average of the MACD line defined by the third parameter. The area in the background illustrates the difference between the MACD line and the signal line.
Pearson Correlation – quantifies the linear relationship between two variables.
Spearman Correlation – quantifies the monotonic relationship between two variables. As such, the Spearman Correlation is based on the ranked values of each variable and is used to detect non-linear relationships between the two.

Source for Section 2 Market Analysisvision&

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Download the Rotation Report as a PDF here.

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