Crypto Market Analysis & Some Hidden Gems for Huge Gains

We saw the rally in altcoins which started in May and later fulled to main frontline cryptocurrencies too. The rally has been largely due to the adoption of DeFi and the exponential growth that we are seeing every day.

Bitcoin has been doing good in the past few weeks and this momentum is here to stay. There are many reasons why Bitcoin rally this time is not a bubble but based on huge demand and strong fundamentals that people are seeing now. Until March 2020, the total asset under management of crypto assets by hedge fund across the world was estimated at $2 Billion as per the report of PwC but as of today more than $5 Billion worth of Digital assets as managed by Grayscale Investments alone.

This shows the huge trust people have in the Bitcoin. Institutions invest for the long term and it is not the retail client’s buys who can push the prices but the institutions as they don’t speculate but invest.

MicroStrategy which is NASDAQ-Listed company into Business Intelligence software business has invested $250 Million into Bitcoin. The CEO of the company has even claimed that “Bitcoin is superior to cash”. The point is not about whether we agree or disagree with this statement but we should see the confidence and traction that we are seeing in crypto adoption. This trend is only going to increase as time progresses.

Popularity of DeFi

Most of the scam coins were dead after the 2018 crash in the market. Many of the projects that we are seeing now are legit as people do not buy into a white paper with a lot of promise. Everyone wants to see a product with customers now so the quality of the projects has increased greatly. However, I see many projects now going for DeFi even if they have nothing to do with it which makes me feel there will be another bust of this rally which is due to misguiding people on projects based on DeFi when they have nothing to do with it.

There is also risk concerning the fundamentals of lending businesses in the crypto world. There are a lot of companies who are offering interest rates as high as 10-15% on a deposit of your cryptos on their platform but they should earn also on those deposits but they are earning less by offering loans than what they get by paying retail investors for their deposited cryptos and even fiat currencies so I see a huge problem and a major flaw of how they really make profits.

One big crash is enough to create huge problems in such businesses so just a word of caution. There are some projects in this space who are taking huge risks and my concern is about that type of business model.

Ethereum Blockchain and the forthcoming Ethereum 2.0

I am very bullish on Ethereum from day one and even now extremely bullish on it. Almost all the SC are based on Ethereum Blockchain. This is the only blockchain which has been tried and tested for many years and is known for its stability despite the large number of DaPP running on its network. Scalability has always been an issue but this will be sorted out when ETH 2.0 gets released soon. So ETH will be way ahead of all the other Blockchains that is available today.

There is no other Blockchain which has been used to such a large scale like that of ETH so by far they are the leaders and will remain that way for a long time. In my opinion, ETH is like an Operating system of the Blockchain world. Slowly the ICO boom started to come back now and most of them are based on ETH so we will see a huge push for ETH from this side as well.

Technical Analysis:

Bitcoin

Bitcoin has remained range bound between $11200 to $11800 but having a strong momentum for upside. We can see a breakout if BTC closes above $11790 and breaks $12060 and stays there for a few days. There is a short term target of $13320 and after that, we can see $16500 levels.

Supports:

$11160-11250
$10755-10845
$10188-10260
$9610-9700
$9250-9450 (Total trend reversal)

Resistances:

$11700-11790
$12060-12150
$12600-12690
$13320-13420 (after which BTC will head towards $16500)

Ethereum

ETH has been stable and is a strong extreme strength. It broke out of its strong resistance yesterday at $395 with good volumes so it is now looking good for $450-470 in the short term. In case of any reversal, it can find support at $345

Supports:

$410
$390
$345
$285 (Strong Support)

Resistance:

$445
$485
$510
$565 (Strong Resistance)

Hidden Gems:

1. Morpheus Labs (MITx) – Already listed on Binance DEX. One of the promising project with a good team, partners and a good growth seen recently. You can expect it to go 2-3x in the long run.
2. WIREX Token (WXT) – A great project having a good use case for their tokens. They are the only crypto project which could successfully make a partnership with Mastercard with Principle member status. I am expecting 2-5x from this project in one year time. They are issuing cards in Europe which helps cryptos going mainstream.
3. Verasity (VRA) – Great project with wonderful partners. Gaming and e-sports industry is gaining a lot of momentum so this coin is going to get benefited from it. Also, the project is already listed on Binance DEX and can soon be listed on the main Binance exchange. So it looks very promising for 3-5x gains.

Buy and sell at your own risk and do your own research before getting into anything.

This article was written on 14th August 2020 at 16:50 so if any coin moves by 10% then do not chase it as there will always be some opportunity to buy next time.

The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the article’s content as such. Author, website or the company associated with them does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

Guruprasad Venkatesha is Co-Founder & CEO of b-cube.ai, French-Hungarian startup making trading in cryptocurrencies easier & more profitable using AI/ML and complex mathematical models. He started his first asset management company when he was 16 years old and had a successful exit later. Then he went on to work for Morgan Stanley as an Investment analyst then he quit the job to jump into the world of Cryptocurrencies.

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