A bite-size overview of digital asset market trends for this week

The crypto markets have a muted start in Asia on Monday, but volatility is expected to pick up as issues such as the US-China trade war, Brexit and the unrest in Hong Kong remained liquid, on top of that, the easing from China is also in play, as the inverse correlation between bitcoin and the yuan has reached a new record level. Meanwhile, market sentiment seems slightly shifted from bitcoin to altcoins, as major altcoins outperformed bitcoin during the early Monday session. At the time of writing, EOS traded 3% higher, while ATOM surged more than 10%.

Crypto watchers may also want to focus on China. The country said the upcoming digital currency will have the edge over Facebook’s libra in terms of technology. Changchun Mu at Digital Currency Research Institute said the new digital currency is capable to perform P2P transfer even for users without a cellphone or internet access. He added that the transfer can be done via two phones in physical contact, and that’s something Libra can’t do.

What You Missed

  • More major companies are jumping on the crypto bandwagon, and PricewaterhouseCoopers is the latest one. As one of the Big Four auditors, the company’s Luxembourg office will accept payments made in bitcoin starting next month.
  • Telegram is getting closer to launch its blockchain. The company opened a test portal for developers who is interested in the TON project. They can start running a full node, a validator node, and the blockchain explorer.
  • Bitcoin market dominance has slightly dropped to below 70% while the ex-bitcoin total market cap has ticked up to above the $80 billion marks. That came after the price of bitcoin failed to stay above the key 10500 levels over the weekend.

Price Analysis

BTC/USDT

  • The pair remained in a descending triangle pattern which formed in July.
  • The Fibonacci Speed Resistance Fan indicates that 0.382 remained a significate resistance for now (figure 1). That’s also in-line with OKEx’s BTC Long/Short Ratio (figure 2), which surged to 1.43 on Monday, it suggests that traders with short positions have higher potential profit.
  • The first reference level could be the 10-day SMA at 10308, and below that, the 50-day SMA near 9799 is another level to watch.
Figure 1: BTC/USDT Daily Chart. (Source: OKEx; Tradingview)
Figure 2: OKEx BTC Long/Short Ratio (Source: OKEx)

EOS/USDT

  • EOS was one of the major altcoins that outperformed bitcoin in the early Monday session in Asia. At the time of writing, EOS/USDT traded 1% higher and went above the 100-SMA in the 4-hour chart (figure 3), which hasn’t happened since late June.
  • The pair has entered the upper part of the previous trading range, and the 3.77 area could be short-term resistance.
  • If the rally is sustainable, the first target could be around 4.19 area, which is the lower part of the earlier trading range.
Figure 3: EOS/USDT 4-Hour Chart (Source: OKEx; Tradingview)

ALGO/USDT

  • ALGO is another altcoin gainer in the Monday session. ALO/USDT traded 1% higher at the time of writing.
  • The 4-hour chart (figure 4) indicates that an ascending triangle pattern has formed, and a breakout could come within days.
  • If the pair can produce a breakout, the 38.2%of the Fibonacci Retracements, which is near 0.414 could be the next resistance.
Figure 4: ALGO/USDT 4-Hour Chart (Source: OKEx; Tradingview)

ATOM/USDT

  • ATOM was also among the top-performing altcoins, ATOM/USDT rose more than 10% at OKEx’s trading platform on Monday morning in Asia.
  • The pair has flirted around at the 100-SMA area, which is near 2.68, however, short-term consolidation seems needed to further the rally.
  • First level to watch 2.59 and then 2.76. The lower range would be 2.35, where the 10 and 50-SMA crossed.
Figure 5: ALGO/USDT 4-Hour Chart (Source: OKEx)

Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involves significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.


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