Top news for this week:
Coinbase: Bitcoin Is Superior to Gold
Coinbase has published a report highlighting Bitcoin’s advantages over gold with the main one noted as a lack of dependence on physical supply chains. This is especially crucial during the current pandemic.
“Gold refineries, miners, and supply chains have been disrupted, Bitcoin’s core protocol continues to function as designed”
Additionally, the report asserts that “Bitcoin will be approximately as scarce as gold,” however, possesses the distinct quality of teleportability:
“Bitcoin’s rate of new supply is ~3.6% per year and will soon drop to ~1.7% on May 12th, setting it on par with gold’s historic scarcity. As gold miners and refineries have gone offline, Bitcoin’s global mining ecosystem seems resilient according to hash rate measurements in recent days.”
Stock-to-Flow Creator Says Bitcoin is ’Not a Toy Anymore’
PlanB, known for his stock-to-flow model, has said in a recent interview on Peter McCormack podcast episode that “This thing is not a toy anymore. It’s maybe not an asset anymore as well,” he said, adding, “It is going to be much bigger than that.”
An updated version of his Bitcoin Stock-to-Flow Cross Asset Model can be read here
American Buyers Are Fueling Bitcoin’s Rally, Data Suggests
As Bitcoin rallied above 9.5k this week, US-based exchanges traded at premiums indicating strong interest. Why Americans increasingly accumulating bitcoin is not fully clear, however, google data also keep showing increasing interest.
Aditya Das, cryptocurrency market analyst at Brave New Coin has stated:
“I also think halving FOMO [“fear of missing out”] and some miner buying activity is a factor, particularly given how good [bitcoin’s] hashrate has looked in the last month,”
Technical analysis of Crypto majors:
Bitcoin has a market cap of 167 billion USD and trades around 9,091 USD on Coinbase as it briefly tested above 9.5k this week.
A strong rejection for further downside was seen on Thursday as the price closed with a clear bearish pin-bar, however, since then another attempt to move higher can be seen as Bitcoin trades above 9k once again.
Overall, the current rally does seem to be extended too far too fast and we might see a correction next week. Potential area to look for another local higher low can be seen around 8k, where both 100 and 200 day moving averages are currently located in addition to 7.7k previous resistance.
Ethereum currently has a market cap of 24 billion and trades at 215 USD on Coinbase as it has followed Bitcoin price action closely.
The price currently sits around 61.8% Fib retracement and 215 USD previous support after briefly peaking at 227.5 USD on Thursday.
Therefore, in the same way as with Bitcoin, a retracement that sets a clear new local lower high is needed in order to enter the market once again. Until then it is best to stay neutral and wait for further price action development.
Ripple currently has a market cap of 9.86 billion USD and is trading around 0.2235 USD on Coinbase as it has reached a very strong resistance ay 50% fib retracement, 0.225 USD previous support as well as the area between both 100 and 200 day moving averages.
Therefore, it is very likely we will see downside next week as the price looks to set another higher low around previous minor resistance of 0.2 USD.
From there, a long position can be entered if the price action shows signs of support.
Crypto of the week:
During the current rally an increasing traded volume on Binance has been seen, therefore let`s take a look at BNB for this week`s “Crypto of the week”
Binance Coin (BNB) currently has a market cap of 2,727 million and is trading around 17.54 USD/0.00192842 BTC on Binance.
The price against Bitcoin continues falling lower for the past weeks after peaking around 23k satoshi as it looks to move lower and retest previous major support area around 17.5-18k satoshi.
Therefore, a range trade could be entered next week once the price approaches the support area and starts to show signs of reversal, price of Bitcoin, however, still needs to be taken in account as we might see a strong decline in the upcoming weeks as the Bitcoin price seems to have extended too far in the past week.