MAX Digital Asset Weekly, Feb 22 2019

MAX Digital Asset Weekly, Feb 22

Digital Assets up +11% this week on another week of active trading. Overall turnover this week increased to US$26B — one of the best weeks on record — and +26% versus the previous week. Sentiment remained positive with 83% of the top coins and tokens ending the week above their 20 day moving averages.

Volume was one of the key highlights of the week with BTC posting its most active day of on exchange trading ever (denominated in BTC). US$ Average Daily Volume this month is also on pace for one of the most active months for a number of coins: ZEC is on pace for its most active month ever, LTC and ETH are on pace for their 2ndbest and BTC is tracking its 4thbest month ever. BCH has been a notable exception this month, though, averaging just shy of US$300M this month — on pace for one of its slowest months on record.

News flow this week was a mixed bag, though generally positive. The top headlines of the week included: 1. Samsung announcing that its flagship S10 smartphone will have built in crypto support, 2. Binance launching its Decentralized Exchange on testnet, 3. Bitmain releasing its new 7nm chip and revealing a massive US$500M 3Q18 loss, and 4. Japanese banking giant, Mizuho, launching a JPY backed cryptocurrency.

Looking into next week, significant outperformance in a number of Alt Coins will likely put some of the big movers under pressure. Would expect to see some degree of consolidation across Alt Coins in general given BTC/Alt Coin Index falling to an RSI of 31 this week and dropping to a 50 Day Z-Score of -1.8. EOS is potentially one of the primary candidates for consolidation given its 59% gain over the previous 1 month. LTC’s very active trading this month and its upcoming halving (a drop in its annual inflation rate) on August 7 2019, though, could mean a continuation of its outperformance. For BTC, a multi month low in leveraged trading (longs and shorts) points to a lack of directional conviction and increases the possibility of a gap in either direction. Given very active trading in BTC this week and an increasing number of flips in momentum indicators, risk is likely still to the upside. The 200D MAVG of $5,200 is probably the next major line of resistance.