Weekly Technical Analysis – 17 May 2018
The crypto market continues to consolidate after last year’s massive run up into the end of the year. Bitcoin has retraced 70% from the all time highs around $19 500. This is completely normal if we have a look at the price action, particularly for bitcoin, since it’s inception. There is nothing noticeably new from the last report about the market dominance chart. Will Ethereum or alts challenge bitcoin’s dominance in the coming months?
Price action in general remains a bit boring, but this is typically a good thing when on the lookout for buying opportunities. There is a high correlation between bitcoin price and search terms on google, as depicted below:
Usually a loss of interest (as we see in this current period) often signals good buying opportunities. Conversely, in December, when Bitcoin was hitting all time highs on a daily basis, the crowd was buying at these levels. I still believe these are good levels to pick up bitcoin if you are a longer term investor.
Loom Network is a blockchain platform designed specifically for online gaming and social applications. The vibe from their team is most notably about shipping code and less about idle marketing and whitepapers. This is a huge deal for me considering the number of projects coming out with all sorts of claims around nothing but ideas. At the end of the day you need to deliver on your ideas and projects with prototypes or working proof of concepts have a much higher probability of success in my opinion.
Furthermore, the below chart of LOOM vs Ethereum should illustrate the strong buying pressure from investors since the token listing. Ethereum has remained very strong until now and provides a good proxy for good projects. In other words, most ICO’s start selling off against Ethereum as soon as they are listed, in which case you might as well have just held Ethereum instead of the new token. Not so with Loom, the trend remains clearly up and investors/traders should look to dips as buying opportunities.