OSL Daily Update - May 19, 2020 

$BTC 24 Hour High $9,906.03
$BTC 24 Hour Low $9,570.36
$BTC -2.1%

Traditional markets overcame initial bearish sentiment from traditional heavyweights offering pessimistic forecasts on the global recovery as it rebounds nearly +3% on the news of Moderna’s successful COVID19 vaccine tests.  Digital assets are seeing less action with overall market cap decreasing by 4B to 261B overnight.  

Digital assets market:

  • $BTC correcting down 2%, currently range bound between 9,400-9,700. Trading slightly above the upper range on Bollinger bands with bearish momentum. Resistance at 9,525 levels, with 9,730 as its next target. 
  • $BTC futures volumes also back down to below 20B levels (the average across May). Volumes have exceeded 30M only three times this month - including the halvening and last week’s run up to 10K. Open positions at 2.27B across the top four exchanges with bear-bull at 71/28. No major liquidations to note.
  • Focus slowly shifted to alt coins with $XTZ and $ADA performing the best out of the top 10 large-cap alts against $BTC’s slide. $ZIL dropped 12% over three days after it was unable to maintain momentum from its “pay to promote” campaign on Twitter for its project.
  • $XTZ @ 2.672, up almost 9% over the past week, resistance at 2.44, targeting last week’s high at 2.96
  • $ADA @ 0.053, resistance at 0.049, targeting 0.055, up 8.5% over the past 7 days
  • $ZIL @0.0096, peaked at 0.0111, three days ago
  • Desk seeing $USDT arb opportunity opening, seeing more sell side flow from payment providers, currently at 80% of trading capacity. Decreased amount of $BTC flow which is consistent with the current trends as focus shifted onto alts after a week of bullish $BTC momentum post halvening. 

News that caught our eye:

  • Percentage of $BTC illegal activity has dropped to less than 1% (compared to estimates of up to from 35% in 2012 for the $BTC market). This is likely due to efforts by industry players to implement stronger AML and KYC standards as well as adopt coin purity testing in an effort to remain in compliance with regulatory requirements.

Traditional markets:
VIX down 8% to 29.3, just 2x above normal pre-COVID19 levels with analysts warning that past trends have shown markets crashing after VIX normalises. The Fear and Greed Index is at neutral levels after weeks of showing extreme fear throughout April and May.

  • DOW up 3.85% (+912pts) to 24,597
  • S&P up 3.15% (+90pts) to 2,953
  • NASDAQ up 1.9% (+179pts) to 9,331

 

May the trend be your friends!

 

OSL Trader View and Weekend Digest are contributed by Stefan Chu, SJ Oh, and Santiago Nazaretti

 


 

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