Daily Market Update - April 8, 2020

$BTC 24 Hour High $7,427 $BTC 24 Hour Low $7,136 $BTC -2.5%

After a strong bullish push to start off the week, fuelled by optimists on the news of COVID-19 numbers stabilizing in US and European countries, markets underwent a global selloff - wiping out the majority of intraday gains for the US benchmarks by noon. This triggered a domino effect for the digital asset markets two hours after, total market cap decreased by -$6B from 206B to 200B during this time. 

Digital assets market:

  • $BTC pulled back to high 7,100 levels from highs of 7,400 yesterday, down -2.5%. 

  • $BTC market dominance remains the same 64.8% 

Worst performing mid-cap altcoin:

  • $EOS -4.8% after seeing +14% gains yesterday, currently trading at 2.60 with support at 2.55, aiming to get back to 2.64 as its next target

Best performers:

  • $VET +5% in market cap (211M), +5% to 0.0038, resistance at 0.0040 with tested support at 0.0036 over the past 12 hours. Currently trading slightly below the 20-bar average line of the Bollinger bands with 1h charts. 

  • $LINK peaked at 2.91 levels before sliding down to 2.72, finishing at +4.8% for the American session. RSI signalling slight overbought levels at 57/70, trading at the midpoint of the Bollinger bands currently.

Trade Idea:  HBARBTC Long, skewed risk-reward, bullish divergences and a potential lagger

As virtual asset markets have been gaining the ground they lost during May, risk appetite might be making a comeback, at least in the short term. Some alts have outperformed Bitcoin in the last week: ETHBTC, EOSBTC, XTZBTC, and ATOMBTC have all recorded gains from 11% to 15%. These are not only alts to $BTC, but are also HBARs peers and competitors… will $HBAR follow its steps and appreciate against $BTC? If you agree that HBAR is amongst a peer group which is gaining against BTC, the trade idea below may provide some suggestions on technical indicators.

Aside from being a potential laggard in its own digital asset category, this HBARBTC trade appears to have a nice and asymmetric risk-reward if the trade thesis is correct, but also some early signs of trend reversal. The most notable ones are:

  1. Bullish divergence marked in orange (higher high on the oscillators and lower low on price) that might indicate its downtrend is losing steam.

  2. MACD signal line turning bullish again (this indicator measures the relationship between two moving averages).

Apart from this, HBARBTC is currently on the same price level where it bounced twice last month, indicating it may be sitting at a potential support line. For those inclined to execute an immediate trade, possible entry points and risk management levels might be set as follows:

  • Entry Price: 467 sats

  • Stop Loss: 459 sats (low volume so beware of stop hunts!)

  • Take Profit: 524 sats

A more conservative approach would be to wait until the diagonal under which it has been trading since March 22th and the midpoint of the ranged is claimed again, resulting in the following entry point and risk management levels:

  • Entry Price: 485 sats

  • Stop Loss: 472 sats (low volume so beware of stop hunts)

  • Take Profit: 524 sats

News that caught our eye: COVID-19 and the adoption of blockchain technology in our everyday lives: Italy’s main news agency ANSA (owns 24 national newspapers) launched a new blockchain-powered tool with Ernst & Young named ANSAcheck that verifies the origin of news to battle fake COVID-19 news being circulated. Each news article will have a tracking label (Notizia d'origine certificata) which will include date and time of recording/publishing articles, registered blocks for relevant events, and relevant blockchain transactions using Etherscan. Upcoming halving events to keep in mind:

  • $BCH (formerly BCHABC) - halves at block 630,000 (current block = 629,922) ~ETA tomorrow - $BCH mined every 10 minutes will be halved from 12.5 -> 6.25.

  • $BSV - halves at block 630,000 (current block = 629,711) ~ETA Thursday - $BSV mined every 10 minutes will be halved from 12.5 -> 6.25

  • $BTC - halves at block 630,000 (current block = 624,910) ~ETA May 14, 2020 - $BTC mined every 10 minutes will be halved from 12.5 -> 6.25.

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