Week 39 – Overview of fundamentals and markets

trend, daily, week 39

Welcome to our weekly brief. Here you will find an overview of main events and news from last week and expected events for week 39. 

Fundamentals and expected events: week 39

Crypto markets: Bitcoin initiated an impressive growth after dumping below $41,000, which resulted in reaching nearly $44,000. Tokens from the decentralized finance space have reached even more notable gains in the past 24 hours, including a massive 30% surge from Uniswap. Bitcoin’s market capitalization has gone over $800 billion, while the dominance over the alts has declined to 40,6%. Cryptocurrency market capitalization has increased by more than $150 billion since yesterday’s low, but it’s still beneath $2 trillion.

Stock and commodity markets: By the end of the week we will see the arrival of the last quarter of the year and a new result season. China again played a major role in the development of financial markets. Evergrande (a large Chinese real estate developer) failed to make some of its promised debt repayments on Thursday, and gave up a significant portion of its previous gains on the Hong Kong stock exchange, while also bringing down the stock markets. European stock markets are rising more strongly at the beginning of the week. Investors are apparently positive about the results of the weekend’s German elections and also fears about China’s Evergrande problems seem to be finally dissipating. Also positive are comments from the ECB suggesting that the current problems on the supply/demand side of the disruption will only be temporary. Oil enters the new week on a positive note once again. Concerns about insufficient production still remain. Gold is trying to recover, but it is always only for a short period of time.

Important events: We can expect statements from the american Fed as well as British central bank together with many important macro data.

Cryptomarkets and marketcap: week 39

The total crypto market capitalization reached 2,051 trillion USD.

Bitcoin’s price is currently 43,607 USD.

Bitcoin’s dominance is currently 40,6%.

Crypto Fear and Greed index is 26, fear.

Tip: Three generations of cryptocurrencies

BTC/USD

BTC worked exactly as scripted. It has arrived at the POC, where it is forming a triangle in a 6-10% range of up and down movement. Like a roller coaster. We are now below the 50 and 200 EMA with bearish divergence (BD) on 4H and 8H. That’s a bit strong coffee for an up move. The only thing that is bullish now is the breakout on the main RSI TL. But it could easily turn into a fakeout if there is a failed retest of this TL. But nothing is impossible with BTC. $45153 is the key to the next move. If we cross this level, I would expect a move above 200EMA, where it will be decided after testing 200EMA whether it was a breakout or a fakeout. Personally, I’m more inclined to move and into the 36-39570 zone where we will form a bullish divergence and BTC should find support. The last bailout is at $33000, where I don’t foresee us getting.

TA BTC

DOGE/USD

Doge is fighting the trend line and considering how many times he has tested it, the probability of him breaking it is increasing. Doge is still at a very critical juncture. Not much has changed for Doge, Patience is still in place. Golden cross is still in sight. Bullish divergence where Doge has safely arrived pushes the price slightly up. Given the distance of the two EMAs, the resistance is all the more significant. We’ll have to wait for price to break down or consolidate enough in 1-2 weeks to get above both EMAs that it won’t be that challenging. With legislation around cryptocurrencies still being addressed, we don’t have support now either fundamentally. Add to that an over-aged capital market. Wait for a golden cross or crossing and testing the 50EMA.

TA DOGE

PLTC/USD

A very volatile cryptocurrency market full in anticipation of how regulations will affect price developments. This is how one could characterize the developments in the cryptocurrency market in recent days. However, this is not the case for PlatonCoin. Just for a moment, PlatonCoin fell into major support, only to turn around and rise above the $0.47 (EUR 0.40) level. Major support is $0.50-0.55 (EUR 0.42-0.46) and resistance is $0.60-0.65 (EUR 0.52-0.56). In the last week PlatonCoin tested the bottom of the main support and has now safely returned above $0.47. The development in the cryptocurrency markets does not seem to have calmed down, but instead is starting to escalate. Do not expect a correlation between the cryptocurrency market and PlatonCoin. The price will be determined by the development of the ecosystem and its usability by the public.

TA PLTC

Disclaimer: This is not an offer for concluding a contract. Trading cryptocurrencies is a highly risky business and as such you are the only person bearing the risk and responsible for your own decisions. Do not engage in trading unless you do your own research and are fully knowledgeable of the risks.

Leave a Reply

Your email address will not be published. Required fields are marked *