Crypto’s tectonic plates moving

The market is no more in its idle state. There is a lot of movement beneath the surface, and the market participants can feel it. If you follow cryptocurrencies related news, you must’ve found yourself hearing more and more about the new developments lately.

The most recent to shake off the dust is Coinbase. One of the biggest cryptocurrency exchange is losing its old charm and is now planning to expand into uncharted territories. The company is determined to introduce its services into new countries namely New Zealand, Mexico, and India. However, the case is easier said than done since Fiat-Crypto regulations are not easy to overcome. The positive development has helped Coinbase recover its trading volume and set to record a 1-year high.

The cryptocurrency market would soon have to make the transition from ‘Investment’ phase to the ‘Utility’ phase. We expect a number of new uses cases to present themselves. We’ve high hopes from decentralized lending and micropayments services but some novel crypto applications are required to provide the market with a new sustainable boost. The recent uptick in Decentralized Exchanges volume has provided some relief that all hope is not lost. The month of April is expected to set the record of exceeding $100Mn worth of assets traded on Decentralized exchanges.

On the institutional end, CME lately observed a major uptick in the volume. A recent report published by Bitwise (asset management firm) highlighted the actual trading volumes of cryptocurrency exchanges. The information was already available to the public but the official submission to the US Securities and Exchange Commission reminds about the actual illiquid state of the market. Institutional products have seen a gradual increase in % of total trading volume against US-based exchanges, approximately 8% more than when Bitcoin reached an all-time high.

During the recent surge in BTC price, CME recorded some strong volumes figures. Something to keep an eye on.

Developments in the Crypto World:

We are continuing to explore the addition of new assets, and will be working with local banks and regulators to add them in as many jurisdictions as possible.

Polychain Capital saw its assets under management drop to $591.5 million in Q4 2018 from its $1 billion peak, the Wall Street Journal reported.

South Korean electronics giant Samsung is developing its own blockchain network and eyeing the issuance of its own token further down the road.

Big Four professional services firm EY is rolling out free software designed to help corporate clients use the ethereum blockchain – and it’s taken an unusual step to encourage adoption.

Technical Outlook:

The last couple of sessions have really changed the game as Bitcoin dominated total market cap up to 54%. This resulted in changing dynamics leading to contrary moves; generally major pairs such as Ethereum, Litecoin and others move in the same direction as BTC, often giving returns in multiple of what is offered by BTC in a given period. However, this time things were different as BTC alone lead the charts leaving majors in the dust. Bitcoin gave a significant return of ~33% followed by the one and only BNB ~23% (due to fundamental factors; Popular IEOs, DEX and Binance Chain launch), and BCHABC upon delisting of BCHSV from major exchanges. Moving onto our Universe stats, as expected only Payment projects managed a positive return of ~2.75% (as BTC lead the charts) followed by IoT and Advertisement projects with losses of ~0.75% & ~1.08%. Meanwhile, Blockchain services, Smart contracts & Mobile projects lagged with weekly negative change of ~26.7%, ~30% & ~37%. Moving on to coin wise top performers, we saw BTC leading with BNB and BCHABC on the runner-up positions. Losers in the past two weeks were mainly from the third tier alts segment; namely GO, FUEL & AMB each losing ~38% on average. Talking about the total Market cap, we saw a ~23% (~$144bn to ~$177bn) hike since 1st April 2019, mainly attributed to Bitcoin’s increasing dominance.

We see several positive developments on BTC daily chart suggesting further upside continuation, naming a few; Ascending triangle (continuation pattern), 50SMA and 200SMA golden cross, and respect for short term moving averages pointing towards strengthening upside trend. Keeping the mentioned technical observations in perspective, we feel an immediate spike towards ~$5,800 – $6,000 would not be surprising at all. However, we do expect some correction afterwards likely followed by a strong move towards ~$6,400 – ~$6,600. Traders are advised to stay long with a closing based stop below $5,100. We feel in this scenario, major pairs are still likely to stay on the back foot for some time, and we will share our views via our twitter handle @Bitbloxx1 at the right time to enter the likes of ETH and LTC.