Author: Patrick Heusser

Market Commentary von Patrick Heusser, Crypto Finance AG Good Morning! So… the PlusToken scam stories are making the rounds again. Token movements of EOS, ETH and BTC were detected by the community, which, in turn, triggered a certain amount of panic. In my opinion, this panic was unwarranted on account of the fact that none of the tokens were moved (yet) to a known exchange. Having said that, the market remembered the last time that a good portion of those tokens hit the market. The selling pressure (oversupply) pushed the price down. Mining companies are probably putting coins on the…

An overview of the trading activities on the cryptomarkets. Studies on traded volumes, supply and demand situations, as well as periodic technical analysis of the most important crypto-currencies and indices, including the perspective of Crypto Finance AG Senior Trader Patrick Heusser. Market Commentary von Patrick Heusser, Crypto Finance AG Good Morning! Bitcoin BTC$ (4 hours) The sideways price action is wearing down the traders. Especially those who only do short-term business. Maybe I should have put more emphasis on the order book cluster situation on Bitfinex (see picture). There, they stand firm: Whenever we went underground, the bids are serviced,…

Market Commentary von Patrick Heusser, Crypto Finance AG Good Morning! I think today is a good time to have another look at CBDC and Libra. Both projects have made some significant progress over the past six months. Libra took a U-turn from a currency basket concept to single currency stable coins. See Libra’s White Paper here. The main driver in the CBDC space is China. They have already kicked off a test phase with several domestic banks and their customers. A wallet (smartphone app) was released and some screenshots made the rounds on Twitter. Do CBDCs lead to wider adoption…

Market Commentary von Patrick Heusser, Crypto Finance AG Good Morning! The zig-zag price movements are continuing. BTC$ (4 hours) The signs of a weakening trend have materialised into pressure to the downside. In two waves we touched the 8.9k support level we mentioned last week. With this move we have turned on the Ichimoku cloud from bullish to bearish and current price level is just right at the lower band of the cloud. I have to admit, the cloud is thin which indicates that the price can flip-flop around current levels which will make the bull/bear sentiment to jump around…

Market Commentary von Patrick Heusser, Crypto Finance AG Good Morning! Negative news added up over the weekend, which weighed heavy on risk-on assets. You could also say that it has been a first step in aligning to reality (especially in terms of stocks). With a similar pattern to the 12/13 March sell-off (just not with the same intensity), we are seeing nearly every asset class moving lower, incl. gold. Only the USD currency is rebounding. In the altcoin sector, we are seeing typical behaviour (as opposed to what we saw during the rally). The small cap tokens are losing…

Market Commentary von Patrick Heusser, Crypto Finance AG Good Morning! This is a short, but crisply written article about high-fee balancer pools. It is the new way of running an index fund. A smart contract will do all the work together with the arbitrageurs to constantly rebalance the fund. In the image below, the example shows a high-fee balancer pool for ETH/DAI (ETH$, in fact), with a 10% fee band around the price. The report shows via a performance back-test that high-fee balancer pools have a positive performance compared to low fees. But I have to admit that the data…

Weekly Rotationreport CW20 from Patrick Heusser, Crypto Finance AG Content 1 Rotation Analysis 2 Altcoin Futures Basis Analysis 3 Top Ten Comparison 4 Volatility and Correlation Comparison 5 ETHBTC 4h Technical Chart Analysis 6 Market Cap Overview Glossary 1. Rotation Analysis A tight trading range Bitcoin traded in a narrow range alongside the traditional markets. Short-term support remains between 9,200 and 9,300; longer-term support is at 8,500. The short-term resistance is between 10,200 and 10,300; a longer-term and important resistance is at 10,500. Despite the rather low chance of a second wave of coronavirus hitting us later this year, attention…

Market Commentary von Patrick Heusser, Crypto Finance AG Good Morning! Do not underestimate the power of China. The report below gives you an insight into the most relevant coins that Chinese cryptocurrency investors are focussing on. See the report here: A Guide to China’s Cryptocurrency Market: Which Tokens Are Most Popular? Another very good report I read this week was a Medium article about cloud mining. Slowly, but surely, there are more and more insightful and well-thought-out reports coming out dedicated to the mining sector. See the report here: Bitcoin Cloud Mining Guide: Scam or Legit? The size of the mining…

Market Commentary von Patrick Heusser, Crypto Finance AG Good Morning! The rally on Sunday evening (Europe) / Sunday morning (Asia) put us back above 9.5k, and marks the starting point for the current trading week. There was not much noteworthy news that came out over the weekend. There was some discussion regarding the very sharp recovery of the BTC hashrate, but not much insight as to what caused it. On the trading side, the Grayscale inflows and the ridiculous premium people are paying to get a share in bitcoin and Ethereum were additional topics that found some decent traction. The…

Weekly Rotationreport CW20 from Patrick Heusser, Crypto Finance AG Inhalt 1 Rotation Analysis 2 Altcoin Futures Basis Analysis 3 Top Ten Comparison 4 Volatility and Correlation Comparison 5 ETHBTC 4h Technical Chart Analysis 6 Market Cap Overview Glossary 1. Rotation Analysis The challenge of staying above 10,000 Bitcoin rallied over the 10,000 mark and traded briefly at around 10,200, before losing several hundreds of points within mere minutes towards the 9,200 short-term support level. Equity markets have stabilised and are steadily trading higher, so there is currently no fear to be expected from the traditional side. This setup is definitively…

Market Commentary von Patrick Heusser, Crypto Finance AG Good Morning! And welcome the return of 10k BTC$! BTC$ (weekly) Log or non-log scale: the market looks strong. But I believe in the symmetrical triangle regardless of if 10.5k is key or not. Non-log log This is a proper v-shaped recovery, driven from both sides: spot and derivatives. Over the last few days, the push was mainly driven by derivatives. Especially ETH had a massive increase in trading volume and OI on various exchanges. During the last overnight push, we saw some insanely high funding levels on the perpetual swaps. This…

Market Commentary von Patrick Heusser, Crypto Finance AG Good Morning! The buzzword for Q2 2020 will probably end up being Crypto Prime Brokerage (ok, that’s three words, but you know what I mean…). Currently, there are several institutions trying to position themselves for the prime broker spot. And there are already quite a few service providers that offer one part of being a prime broker: clearing. The second essential service is brokerage/execution. Coinbase is expanding its exchange business Coinbase is expanding its (purely) exchange business towards prime brokerage with its acquisition of Tagomi. It is a bit of a stretch…

Weekly Rotationreport CW20 from Patrick Heusser, Crypto Finance AG Inhalt 1 Rotation Analysis 2 Altcoin Futures Basis Analysis 3 Top Ten Comparison 4 Volatility and Correlation Comparison 5 ETHBTC 4h Technical Chart Analysis 6 Market Cap Overview Glossary 1. Rotation Analysis Interest in smaller coins has gone up Bitcoin has made a strong move over the last two weeks, but was yet again not able to break through the 10,000 resistance level. We saw another impressive trading range of 1,400 points: between 8,600 and 10,000. In general, confidence has returned to the financial markets as countries around the world are…

Market Commentary von Patrick Heusser, Crypto Finance AG Good Morning! BTC$ (4h) In the end, the market grew tired after failing repeatedly at the 10k mark. Once again, the Ichimoku cloud signalled more weakness when the price moved into the cloud. After breaking through the lower band, the price quickly dropped to 8.6k. There is a large liquidity pool around 8.8k, which is working like a magnet for the consolidation. I still see the 8.3k level as the support line that needs to hold on a 4h closing level (for the swift dips that we saw, e.g. around May 10/11).…

Market Commentary von Patrick Heusser, Crypto Finance AG Good Morning! There is still a disgruntled rumble going through the STEEM community. I must admit, I’m not very familiar with the project. But it is interesting to follow the developments of the ongoing dispute. I also believe that this is a first test in terms of how the ecosystem (foundations, the community, and exchanges) will handle the situation. Here is a first reaction from Binance: Notice Regarding Upcoming STEEM Network Upgrade. There have been similar cases in the traditional financial world Additionally, I agree with Ari Paul that the cryptocurrency community…

Market Commentary von Patrick Heusser, Crypto Finance AG Good Morning! The derivatives exchange BitMEX was down yesterday afternoon for roughly two hours. Usually this would have been a big thing, but since 12/13 March when BitMEX lost a lot of market share (measured in OI) compared to its peers, the downtime was not immediately felt by market participants. BitMEX failure only had an effect at second glance However, when you take a closer look at the quoted bid/offer spreads at around the time when BitMEX was down, you will see that it did have an impact. Especially if you wanted…