Market Regime Change? - Mine Digital
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Market Regime Change?

August 12, 2020 • 
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Bitcoin and gold were down overnight, potentially providing a lead on a risk-off equities sell. Is it a change in narrative or a speedbump?

Morning Traders,

We saw some significant moves overnight, with the potential for regime change in markets. The USD weakness was coupled with equities being bought alongside precious metals rallying and there had been a bizarre risk-off trade in equities priced in gold but a risk-on trade priced in USD.

Now there are early signs of the end of this trade for now, with a double-bottom in the dollar index and US equity markets hitting critical levels.

It manifests an interesting scenario, where the equity market looks like it wants to sell off, the fed has provided a put to markets and there is more fiscal stimulus in the works.

Questions are,

  1. Whether Bitcoin is leading a risk-off move in equities
  2. Whether Bitcoin continues to move lower with a developing risk-off move
  3. Whether Bitcoin moves with gold (is gold taking a temporary or longer breather)

If we do see Bitcoin trade back within its long-term down-trend (essentially false-breaking it, it may not recover until later this year. In the meantime we still expect bids and the potential for its own secular move.

Bitcoin

Bitcoin was beat-down overnight, trading as low as about 8% from its high, which had been a double-top.

Bitcoin last traded at $11,370

24 hr high: $ 11,950

24 hr low: $ 11,128

Bitcoin USD Chart

Ethereum

Eth moved largely in line with Bitcoin, last trading at $380.

24 hr high: $ 398

24 hr low: $ 366

Ethereum USD Chart

Digital Assets

DeFi projects performed strongly overnight as many tokens fell with Bitcoin. Assets that are up, flat or marginally down are worth taking note of after a move like the one we have seen.

  • Aave: $ 0.398
  • Algorand: $ 0.44
  • Cardano: $ 0.1375
  • Chainlink: $ 12.99
  • Compound: $ 189.54
  • Maker: $ 594
  • Ren: $ 0.248
  • Reserve Rights: $ 0.011
  • Stellar: $ 0.101
  • Synthetix: $ 4.75
  • Tezos: $ 3.99

Whether you want to simply buy and sell or access advanced features, we have the tools you need. Mine’s order-book exchange lets you trade BTC, ETH, XRP, LTC and BCH against AUD, USD and USDT*. Mine Digital, Australia’s best Cryptocurrency Exchange.

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