Welcome to our Bitcoin & Altcoin Report of KW 24! – In the usual manner, we also show all 14 days together with the Team of Accointing the most important metrics, Analytics and fundamental data to Bitcoin, Ethereum and co. If you missed the last Report, you will find this at the following Link: click me.
In the past few years, the stock market was regarded as the opponent of the crypto market. While crypto-currencies have been described as highly speculative Assets, many investors in the stock market the safe horse. With the market turmoil around Covid-19 the volatility of the stock market rose dramatically. If we look at the last 2 weeks in the crypto market, one could gain the impression that Bitcoin and co. are compared to the stock market is a boring asset class.
Characteristic of this is the Explosion of the “car manufacturer” Nikola (NKLA) is. The company, which has been sold so far, neither a car, nor gains achieved, exploded yesterday at 100 percent. Also in the stock market gambling mood prevails, and the hope of the company that relies on vehicles with hydrogen drive, is characteristic of this phenomenon.
Contents
Bitcoin analysis: How is the BTC price currently?
We begin our Report with a view to the development of the BTC course. We can hold here, first, that Bitcoin, he moves the last 14 days in the area of 9.000. Some joke that the USD 9,000 the new 6,000 USD.
The positive is that we are still above the 200-MA line. This line is in the above Chart in blue. We see that the Bitcoin price broke through the short term line down twice, but very quickly the line has been pressed.
In the context of the Bitcoin analysis, the question of what happens next, of course? – We can say that we are moving in a hot Phase. It is exciting and relevant, if BTC breaks the $ 10,000 sustainable, or a new Phase of the down trends opened.
Most likely, the volatility will increase, however, and thus more “Action” in the market. A look at the Bitcoin Volatility Index also shows us that we are at a low level. The correlation with the S&P500 is still given. The Trend continues, could BTC be a positive development for the American Index‘ wings.
The gentle Comeback of the Altcoins
In the last Report, we have looked intensively on the topic of Bitcoin domination. Our assumption was that the dominance is on the wane and the Altcoins relevance gains. This assumption has been confirmed, and we currently see a gentle Comeback of the Altcoins.
A large cue from the many Listings on Coinbase, which brought some Altcoins, such as Maker or VeChain strong gains.
We continue to see that the Bitcoin dominance was in the last 10-14 days of largely stable. With a correction of the Bitcoin exchange rate – regardless of direction – is likely to take place, accordingly, adjustment of the domination. As long as the domination is, however, below 68%, I believe that we will see a further decline and the Altcoins rise.
The justification for this lies in the “cycle of crypto-investors”. By this I mean that we can frequently observe the following course:
First, an increase in the Bitcoin exchange rate takes place. Then BTC goes into a Phase of sideways movement. Investors are now “bored” and rate other projects, and thus Altcoins to be just as exciting. Pull your money and invest to achieve in the short term in Alts to higher yields. After some time, a further sharp movement in the case of Bitcoin takes place, so that investors jump back on BTC. A further increase is the consequence of to it to re-cooling, and the cycle begins all over again.
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Bitcoin analysis: The Fear and Greed Index
Here, too, there is no massive movements. We have yet to see a slow but clear tendency in the direction of the yaw. No need to worry. On the other hand, we expect a strong movement of the Index, as soon as the volatility of BTC is again on the increase and corresponding price movements take place.
Finally, we will take a look at the On-Chain metrics.
Network fees from BTC and Ethereum
The following graphic shows the network fees of Bitcoin and Ethereum. This is the sum of all network charges, which were paid in a day is compared to each other.
Here, we see, interestingly, that the Ethereum network fees have overtaken that of Bitcoin. The fees of BTC dropped considerably, and while the climbs of Ethereum slightly. This also includes the phenomenon, which we have seen now twice in the case of Ethereum fits. High fees when shipping of a few ETH were enormously due.
On the other hand, this metric is interesting and should be watched in the future. We can see this as a indicator of whether Bitcoin will be more likely to gehodlet as shipped.
Conclusion for the Bitcoin analysis
The volatility is currently very low for BTC. Most likely this will change in the next 2 weeks. As soon as it comes to a Change in the volatility, will change the investment behavior compared to the Altcoins. Based on the current Performance of the stock market, and given the correlation I would expect a further upward movement.
What is your expectation for the coming days? – We are seeing an up or down movement?
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(Image source: Shutterstock, Glassnode, alternative.me, 99bitcoins.com)