Technical analysis

Bitcoin and Ethereum stay flat, is 2020 the year of decentralized finance (DeFi)?

Julien Moretto – 15 Jul 2020

The early summer of 2020 offers no volatility on Bitcoin and Ethereum, down slightly by 1.5% and 1% over one week. Bitcoin is in full consolidation and is trading at €8,100 ($9,200) on July 15. All that remains to be done is to watch for significant price levels, in order to be ready to take action when the strong price movements will resume. On the contrary, tokens linked to decentralized finance (DeFi) are multiplying performances and are emerging as the most promising sector of the market in the first half of 2020. Projects such as Chainlink (LINK) and Aave (LEND) are still taking 40% and 25% respectively this week. The cumulative performance since April is impressive. Our analysis gives you the key levels to watch out for on Bitcoin, Ethereum, and DeFi’s most capitalized projects.

  • According to CoinGecko, market capitalization remains stable at $277 billion.
  • Bitcoin’s dominance continues to decline with 61.2% this week, down from 62% last week.
  • the best performance of the top 50 is signed by Chainlink (LINK) with +39% over the week.

We invite you to discover our full analysis in video (recorded on july 15, in french)

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Bitcoin (BTC)

Coinhouse’s Recommendation : 
Hold / Wait

  • Due to low volatility on Bitcoin, we are maintaining our latest recommendations. Although the sellers were the last to attempt a price move, they are unable to confirm. A bearish acceleration below €7,900 ($9,000) will be a sell signal. If this scenario takes place, we will not buy back before the €6,900/€7,100 ($8,000/$8,200) zone.
  • Buyers can regain the upper hand but only if the price rises above €8,430 ($9,430), which is a key Fibonacci retracement level of the June 23-27 drop. A clear breakout at this level will confirm a continuation of the uptrend with a high probability that the resistance of €8,900 ($10,000) will then be retested and broken up.

Ethereum (ETH)

Coinhouse’s Recommendation : 
Hold

  • Ethereum (ETH) is down slightly by 1% over a week to €212 ($240) on July 15. Ethereum remains trapped in its range between €200 and €220 ($215 and $250). Thus, the price levels for making a decision are clear: if the price of Ethereum falls back below the previous resistant level of €200 ($215), this will be a strong sell signal and we will not try to buy back before the €170 ($180) support. On the other hand, a breakup of €220 ($250) will propel the price to the next resistant zone of €260 ($275) and could potentially be the start of a new medium-term uptrend for Ethereum.

The decentralized finance tokens (LEND, LRC, KNC)

  • We invite you to discover in our video of the week an analysis on the weekly timeframe of Aave (LEND), Loopring (LRC) and Kyber Network (KNC) which have all recently come out of a very long range that lasted more than a year and a half. Although these projects have great potential, keep in mind that investing in these assets remains risky due to lower liquidity compared to markets such as Bitcoin or Ethereum. On the other hand, the potential returns are higher.
  • Loopring (LRC) currently presents the most interesting technical configuration with a well identified support at $0.11 and a profit-taking zone around $0.25, which represents a doubling of the current price.

Top & flops of the week (top 50 marketcap)


Tops

1- Chainlink (LINK) : +40%
2- Quantum (QTUM) : +33%
3- Aave (LEND) : +26%


Flops

1- Leo Token (LEO) : -7,9%
2- Bitcoin Cash (BCH): -3,8%
3- Ziliqa (ZIL) : -3,1%

Investors’ attention is drawn to the fact that the content of the articles does not constitute investment advice.
Investment in cryptocurrencies carries a risk of total capital loss.
For more information, please do not hesitate to contact our customer support department.

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