Technical Analysis October 20, 2020

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.

Technical Analysis

Good Morning!

Bitcoin BTC$ (4h)

Charts: Tradingview

So far, bitcoin has not disappointed. Over the past week, it has been delivering steady price increases. It took several attempt to push through the recent high of $11,650, but in the end we did it.

The supply wall is still looming at around 12k. We are seeing roughly 1,000 BTC sitting on offer on Coinbase up to 12k (Bitfinex, Binance, and Coinbase together have roughly 4k BTC on offer up to 12k). Other market professionals who are more actively involved in BTC options trading have mentioned that a fair amount of those offers come from option strategies.

I still expect us to reach 12k, and depending on how the market approaches the level, also a swift move up to 12.5k, where the next larger offers come in at the larger trading venues (see the Coinbase Heatmap).

If we move below 11.2-11.2k, I will start worrying about my long position and will reduce it.

Ethereum ETH$ (4h)

$390 seems to be tougher than I thought. There are roughly 50k ETH on offer up to $390 on Coinbase, Bitfinex, and Binance. After the first attempt, we moved back down significantly. The price was supported by the Ichimoku cloud and the base line (blue line). In fact, the base line seems to be the rope that ETH is hanging on to.

But it is clear to me. We need to take out $390 to gain some fresh bullish momentum. Otherwise, we might see a setback even below the Ichimoku cloud towards the $330 level.

Ethereum/Bitcoin ETHBTC$ (4h)

Somehow this pair is not playing along with my view. We are flip-flopping around the 0.033 level, which is giving me the impession that the level is not as important as I originally thought.

I will remain mildly bullish as long we hold above 0.031.

DEFI$ (4h)

No change here, except that we are back down at the lower end of the range. Play it and reposition yourself if we break out.

UNISWAP$ (4h)

No bullish trigger so far. Watch the lows at 15k. If we break it, things could turn ugly…

YFI$ (4h)

One of the big contributors to the UNISWAP index is not looking very good either. We are close to the lower end of the range (12.2k).

DOT$ (4h)

This is one of the more neutral coins in the DeFi space. It is trading middle-ish in its range of $3.70-4.60. I have no strong feelings, so I am waiting for it to break out.

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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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