Daily market commentary from 07.10.2020

An overview of what is happening in the crypto markets, summarised daily by Crypto Finance AG Senior Trader Patrick Heusser in the market commentary.

Market commentary

Good Morning!

Bitcoin

Bitcoin (BTC) is trading in a narrow range around $250, with a slight increase in volume and a moderate number of position liquidations. The largest single liquidation occurred on the Bitmex exchange, with an approx. value of $2m. Future premiums are trading inline across all exchanges between 1.25% and 2.5% depending upon the maturity. The future contracts on the Bitmex exchange are still heavily under pressure. Despite a lot of mixed news, the past few days BTC has still been trading in a range of $9,800 and $11,200. Things feel a bit compressed, which could result in a bigger move once we break the important support and resistances of this range.

Ethereum

Ethereum (ETH) is moving towards support lines between $320 and $330. There is continued pressure on the DeFi sector due to a general increase in regulation in the CeFi space and the uncertainty of to what extent this will impact the decentralised platforms. DeFi protocols and decentralised exchanges (Dex) are viewed as having minimal AML and KYC procedures. There is also the question as to what level the decentralised exchanges must comply with the BSA (Bank Secrecy Act). We will continue investigating this, searching for news, and following interesting outcomes, which we will then bring to you throughout our future morning commentaries.

US presidential election

A second US presidential debate is scheduled for Friday, October 15th. It is with great anticipation that we await the second debate’s organisation and content before election day on November 3rd.

Happy trading!

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About the author

Patrick Heusser

Patrick Heusser is a Senior Trader at Crypto Broker AG. Prior to joining the company, Patrick worked as an Interest Rate Trader at UBS and held various positions in the IRCC (interest rate, commodity and foreign exchange trading) in London, New York, Singapore and Zurich. Patrick is an expert in trading and risk management. He also gained experience in other areas, such as building start-up companies. Patrick has a degree in banking from a business school. He has also taken various courses in technical chart analysis.

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