Market Watch – 27 July 2020

Cryptocurrencies, Market Analysis

We kick off the final week of July with positive market sentiment in both traditional and digital asset markets on the expectation of more positive news to push them further - from stimulus to COVID19 vaccine progress with human trials and targets set on government approval.

Cryptocurrency

Digital assets market cap stands at 300B, with the DeFi token market cap gaining (from 6.8B to 7.3B to start the morning) at only 2.4% of total market cap.

We started the week off with BTC pushing back up to 10K levels following its strong weekend performance pushed up 500 or +5%. Volumes spiked to 22B on the weekend after seeing mid 15-18B for the past couple weeks. BTC last traded at 10k nearly two months ago when it rejected 10400 levels.

BTC Futures’ aggregate open interest at 4.5B, with traded futures volumes doubling from late last week to 15B, highest in the month. 148B Short contracts liquidated in the past 24h on this 10K move up.

ETH maintained its momentum, spiking +31% in six consecutive traded days from 236 to 311 as the yield farming DeFi tokens take-off. Traded volumes up 16% to 14B. Foreseeing ETH to remain strong in the short-term until more updates regarding ETH 2.0, its final testnet development and the demand for DeFi tokens.

The craze in DeFi has done nothing but continue to grow. Since June 1st, total value locked in these dApps has grown by $2.5B
During the same period: DEX’s $784M, +$696M
Balancer $278M, +$263M
Defi 373 > 640 +70$, $267M Curve $80> $387M, +$180M
Aave $606M, +$544M

You can laugh at them but they are moving markets. And with the forever giving Fed, these mind-boggling multiples might just be the new norm.




BTC/USD Rockets To Highest Print Since June

Sally Ho's Technical Analysis 27 July 2020 BTC

Bitcoin (BTC/USD) remained on the offensive early in today’s Asian session as traders continued to observe the psychologically-important 10000 figure following the pair’s rampage higher to the 10150.00 area during yesterday’s European session, its strongest print since early June.

Traders finally encountered technical resistance just below the 10154.71 area, representing the 76.4% retracement of a previous depreciating range from 10428.00 to 9270.00. Above that area, the 10180.19 area represents the 78.6% retracement of the same depreciating range.

If BTC/USD bulls are able to resume their upward trajectory, traders will pay close attention to additional technical resistance that is likely in place around the 10268.38, 10276.29, 10354.90, 10615.49, 10647.72, and 10816.43 levels.

Following BTC/USD’s move higher to the 10150.00 area, updated levels of technical support include, the 9879.78, 9856.38, 9834.94, 9712.61, 9674.63, 9640.03, 9577.50, 9527.92, and 9472.51 areas.  Traders are closely monitoring recent depreciating ranges including the move from 9792.00 to 8815.01, the move from 10018.67 to 8815.01, and the depreciation from 10428.00 to 8815.01.  Important technical levels related to these depreciating ranges include the 9416.84, 9418.79, 9561.43, 9558.87, 9582.92, 9621.51, 9734.61, 9761.09, 9811.84, 10047.33, and 10082.82 areas.  A recent appreciating range that traders are monitoring is the move from 8632.93 to 10428.00, with the 9530.47and 9742.28 areas representing the 50% and 38.2% retracements of this appreciation.