OSL Daily Update - July 27, 2020 

$BTC 24 Hour High $10,059.28
$BTC 24 Hour Low $9,657.96
$BTC +4%

Good morning and happy Monday to all! Markets have been decoupled from reality as investors on the slippery slope towards an evident moral hazard trap, that the economy plays less of an effect, knowing that the Fed Bank will protect or bail you out until the pandemic subsides. Republicans announced plans to release another round of stimulus to US citizens (around $1,200 per person). 

 We kick off the final week of July with positive market sentiment in both traditional and digital asset markets on the expectation of more positive news to push them further - from stimulus to COVID19 vaccine progress with human trials and targets set on government approval.


Digital assets market:

Digital assets market cap stands at 300B,  with the DeFi token market cap gaining (from 6.8B to 7.3B to start the morning) at only 2.4% of total market cap.

We started the week off with $BTC pushing back up to 10K levels following its strong weekend performance pushed up 500 or +5%. Volumes spiked to 22B on the weekend after seeing mid 15-18B for the past couple weeks. Currently trading at upper Bollinger bands and oversold levels of RSI for the first time since May 9th. $BTC last traded at 10k nearly two months ago when it rejected 10400 levels. 

$BTC Futures’ aggregate open interest at 4.5B, with traded futures volumes doubling from late last week to 15B, highest in the month. 148B Short contracts liquidated in the past 24h on this 10K move up.

$BTC dominance on the verge of breaking below 60% as it drops to 60.9% to start this week from  61.4%  on Friday as we see more active DeFI<>BTC pairs.

$ETH maintained its momentum, spiking +31% in six consecutive traded days from 236 to 311 as the yield-farming DeFi tokens take-off. Traded volumes up 16% to 14B. It goes without saying from a technical perspective, RSI showing oversold levels, price is trading on the upper Bollinger bands with this uptick. Foreseeing $ETH to remain strong in the short-term until more updates regarding ETH 2.0, its final testnet development and the demand for DeFi tokens.

 

Alt watch:

  • $LINK unable to pick up momentum past $8, volumes dropped and price fell over the weekend to 7.25 levels - heading towards neutral levels on RSI after spending majority of last week oversold and upper ranges of Bollinger bands. Trading below its 10D SMA at 7.58 vs current 7.25.
  • $SNX dropped 14% over the weekend to 3.00 after seeing highs of 4.00 last week; trading at the midpoint of Bollinger bands with neutral RSI levels. 
  • $XTZ had a volatile weekend with 0.50ct traded range on the weekend, ended up dropping 6% to 2.87, to neutral RSI levels and only 6% above 100D SMA (2.71 vs current 2.87)

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.

SHARE: