CryptoWeekly - 👉 Next crypto bull-run?

Monday, September 28, 2020

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Your Weekly Update on All Things Crypto

OVERVIEW

Coronavirus numbers rise causing volatility in traditional and crypto markets
Bitcoin Price breaks through resistance at $10,500 with bullish momentum
Alt Coin Dominance tests resistance for the 4th day in a row
Robinhood Closes $660M Series G and over $1.25B in funding in 2020 alone
Trades of the week look strong after +50% pullbacks

MACRO NEWS

+200,000 Americans Dead

The United States hit another gruesome milestone in the fight against the Coronavirus that week surpassing 200K deaths. To put that into perspective, that is more than 66x the amount that died from the attacks of September 11th. Global confirmed cases have surpassed 31.5M with 6.9M coming from the United States.

The United States now account for:

Over 20% of global cases

Over 20% of global deaths

How this relates to Crypto:

As Coronavirus fears rise and the threat of a new lock-down phase grows nearer, people go on the defensive, and flee into more liquid, more stable assets. Currently the worlds most liquid and stable asset is the US Dollar. When demand for dollars goes up, the value of the dollar goes up.

In the past, Bitcoin has been negatively impacted by an increase in the dollar index, and we say the same thing happen last week.

The Dollar Gets Tested

After breaking a 9-line of support in July of this year, the Dollar Index (DXY) made a big surge over the past week. This is our understanding of the top three reasons why.

1. Coronavirus: Fears surrounding the coronavirus are mounting again as numbers begin to spike across the country and people are becoming fearful of another shut-down. When people & markets become fearful, they tend to take out their investments and hold liquid assets, the dollar is still the primary option for many around the world.

2. Stimulus Stalemate: A major factor in the devaluing of the dollar was the massive amounts of stimulus that have been dumped into the economy since the start of the pandemic. Although talks both parties have been at a stalemate in negotiations for over a month now, House Democrats reportedly bring a $2.4 Trillion dollar coronavirus relief bill to the table. If this goes through, we will likely see the dollar index decline, and crypto markets start to bull once more.

3. Election Uncertainty: If there is one thing we know for sure, it is that markets do not like uncertainty. We also have one of the biggest question marks fast approaching on November 3rd. Fears of a contested election are also beginning to surface after a White House press conference on Wednesday where Trump refused to commit to a peaceful transfer of power when asked. If money flows out of markets, it flows into currency, and that may be another factor buoying the Dollar Index.

CRYPTO UPDATES

Things Are Looking Up For Bitcoin

Alt Coin Dominance Tests Resistance

Bitcoin broke below $10,500 last week and even briefly tested $10K, but quickly recovered over the critical $10,500 benchmark. Technical analysis look strong for bitcoin to continue it's push towards the $12,000 mark in the coming weeks.

What this means: Bitcoin can be a rising tide in the cryptocurrency industry, raising all ships. As Bitcoin's price increases, speculators tend to diversify into smaller cap crypto assets in search of higher yields. If Bitcoin continues to increase, we can expect another alt-coin cycle where the growth rate of alt-coins outpaces the growth rate of Bitcoin.

We will report our technical analysis of Bitcoin's price each and every week.

The graph above shows the alt-coin dominance, meaning the percentage of the market that is taken up by coins other than bitcoin. Last week Alt-Coin dominance broke a significant support line held since early May.

What this means: This signals that money is flowing out of the smaller-cap market and into things that can better hold their value.

Typically when the entire crypto market cap condenses, money flows from riskier small-cap plays, into less volatile assets like Bitcoin or stable coins.

Since the breakdown, Alt Coin Dominance has retested the new-found resistance line every day for the past four days. Be on the lookout for this to resistance line to turn into support and validated a continuation of the Alt-coin cycle.

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TOP FUNDING DEALS

Robinhood closes $660M Series G

The trading platform Robinhood closed another funding round last week. This one totaling $660M from investors including Andreessen Horowitz, Sequoia Capital, DST Global, and others, in an extended Series G round. Robinhood has now raised a total of $1.25 Billion in 2020 alone.

Robinhood is a pioneer of commission-free investing. You can make unlimited commission-free trades in stocks, ETFs, and options with Robinhood Financial, as well as buy and sell cryptocurrencies with Robinhood Crypto.

Ziglu Closes Equity Crowdfund After Raising £6.3M

Ziglu closed it's equity crowdfunding round on Monday after raising it's £6.3M pounds.

Ziglu provides a digital platform that enables customers to exchange fiat currency for cryptocurrency – Bitcoin, Ether, Litecoin, and Bitcoin Cash – with zero hidden fees or transaction charges, and to monitor their balances in real-time.

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TRADES OF THE WEEK

Polkadot (DOT)

Tezos (ZTX)

Kava (KAVA)

Polkadot has been forming a Bull Flag over the past month and looks like it is set for a breakout. Keep an eye on this to see if it breaks out of the descending line of resistance, as this would be a clear sign of a breakout in price.

Tezos has seen a 52% retracement from its most recent highs and looks like it's ready to start its return rally. Watch for this play to test the bottom horizontal line of resistance and potentially make a breakout higher.

Kava held critical support at 18,000 satoshi's and has begun a return rally. After a 63% retracement from its all-time high in August, KAVA is showing bullish signs to continue trending to the upside vs Bitcoin.

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CryptoWeekly - 👉 Next crypto bull-run?

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