Among noteworthy earnings, PayPal and Facebook reported good but not great results. The split here really is about acknowledging previous strong activity while setting reasonable expectations for the future.
Naturally, that’s a split that also applies in crypto. Yesterday, we pierced back through the 40K mark, on the back of a journey of eight consecutive green days. We’re currently closing the day right at that level, after almost reaching $41,000 intraday.
As it’s been the case so far, everyone is looking at BTC, and, as people are less enthused by alts, the BTC dominance index continues to rise. It’s now around 49.
While the USD balance of your diversified crypto portfolio is undoubtedly up, alts are underperforming. With the exception of LUNA, which boldly rose 17% yesterday, other coins like ADA, ETH, and ZEC barely rose 1%.
For anybody trading ETH/BTC, you’ll notice we’re right at a support zone, and, depending on your view, this might be the time to either short hard if we break down or buy in bulk with the hope of a bounce back up. I’m edging towards the latter.
Something I do find interesting is the Kimchi premium falling to zero. It’s just one data point amongst many, but ironically a falling premium was sometimes an indicator of a reversal and extension of a bullish move, which maybe we’ll witness now.
Another chart I came across comes from CryptoQuant. They’re keeping an eye on all the exchange reserves of BTC, which might be reversing and starting to trend down again. Naturally, with less and less supply of coins to sell, the buying pressure would begin to build up and overtake, ultimately resulting in higher prices.
As a last information nugget, and a positive one at that, UBS is looking at potentially offering prime brokerage services for crypto ETPs in Europe. Crypto is a growing pie, and everyone wants a slice, it seems.
BTC rose another 3% yesterday, currently at $44,600 and tantalizingly close to the 45K resistance/support.
Bitcoin has enjoyed a positive trading session today, with prices up 7% post this morning's news that China had taken some small steps to avoid an immediate default from Evergrande. The addition of liquidity to the banking system may just be a shock absorber for next week's action, or it could be the first shot in a sustained program to assist with Evegrande's woes.