OSL Daily Update - May 21, 2020 

$BTC 24 Hour High $9,804.79
$BTC 24 Hour Low $9,447.20
$BTC -1.9%

Traditional assets have experienced increased volatility recently, with mixed sentiment over various topics from the dampened spirits around US-China trade talks to more upbeat feelings around reopening of the economy amidst all of the COVID-19 updates. 

Digital assets market:

After some range bound activity over the past couple of days with a drop in traded volumes to sub 40B levels, digital asset markets went through a sell off with all top 10 large cap alts seeing red.  $BTC tested the support levels at 9,300 after a -400 drop in the early hours of the American trading session over the speculation that Satoshi’s coins were on the move. Wallet containing 50 $BTC mined from Feb 2009, a month after $BTC main net launch, moved into two different wallet addresses with the intent to conceal the ultimate destination. Though some have pointed out this is probably the work of day-one miners. 82M long, and 6M short future contracts liquidated over the past 24 hours moved down, with bull-bear indicator at 70:30. 

$HBAR and $LINK seeing the most positive price action amongst the sell off:

  • $HBAR traded volumes doubled over the past 24 hours after peaking at 0.0475. It dropped to 0.379 and is now trading at the middle of Bollinger bands with all technical analysis showing neutral levels. Resistance at 0.036, and retargeting 0.04 on the next move up.
  • $LINK up 10% over the past 7 days, recovering all of the 4% drop during the news of “Satoshi’s coins” moving, and then up 1.5% overall currently to 4.13 levels. $LINK has been up for 6 days straight with the next target at 4.2 levels. It’s ATH was 4.7, reached 77 days ago.

Trade Idea:  HBARUSD Long, higher highs + higher lows
$HBAR has continuously grinded up since May 12th’s fall, just in line with $BTC’s movements. Additionally, the resistance found from 0.038 to 0.039 is now creating an ascending triangle that is typically a bullish structure. If $HBAR manages to pass it, the next logical target would be in the mid $0.042, in line with the trendline formed since February’s astronomical pump. This, aside from positive momentum from the Hedera team regarding blockchain enterprise adoption, can set up to be a nice trade.

Key levels for this trade are:

  • Entry Price: $0.0377 or as close to the ascending trendline
  • Stop Loss: $0.0362 below the ascending trendline
  • Take Profit: $0.0417 following February’s trendline

Chart 1: HBARUSD


Traditional markets:

  • With early reports indicating that patients who have been retested positive are not considered contagious, pharma stocks shot upwards ~2.3%. 
  • Tech stocks moved more than 2% contributing favorably to today’s benchmark gains (>1.5%). 
  • Oil prices normalized at 33.60 for WTI Crude July Contracts
  • VIX dropping below 30 once again on a -8% drop
  • Safe hedges like 10-year Treasuries and gold were both down (2.7% and 17 bps respectively). 
  • DOW up 1.5% (+369pts) to 24,575
  • S&P up 1.7% (+48pts) to 2,971
  • NASDAQ up 2% (+186pts) to 9,485

 

May the trend be your friends!

 

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

 


 

OSL is Asia’s most comprehensive digital asset platform providing brokerage, exchange, software-as-a-service and insured custody solutions to professional investors.

Home to one of the world's largest and most experienced digital asset trading desks, OSL has its finger on the pulse of the market. The Trader View newsletter is a short, easily digested summary of market activity and eye-catching news of the day.

Feedback is important to us, and we’re keen to learn more about the types of insights and intelligence that matter to you most. Please share your thoughts with us.

And be sure not to miss future OSL news and insights by following us on TwitterLinkedinFacebook, and Telegram.

 

 

Please refer to OSL's relevant disclaimers and disclosures associated with this note, including restrictions on redistribution.