We are excited to announce a new weekly content series from the Hehmeyer crypto trading desk. Our goal is to help people continue to expand their understanding of the world of crypto. Our team of experts will be providing market insights, cataloging notable trends, and discussing the latest and greatest news from the cryptosphere. Read on for this week’s tidbits.
Ethereum
Ethereum has dethroned Bitcoin as the top cryptocurrency, according to Weiss Ratings. The ratings agency, which consider adoption, technology, market momentum and investment risk, updated its overall crypto rankings. Weiss now places Ethereum (ETH) in the number one spot, followed by Bitcoin (BTC), Cardano (ADA), Litecoin (LTC), and Stellar (XLM). Ethereum maintains its upward momentum as ETH 2.0 approaches implementation.
The DAO Era
In the beginning of the crypto movement, the DEXs were seen as the future of settlement. Fast forward to today and DeFi rules the market. Next, prepare to witness the DAO era — from our perspective, the stage is set.
The CME Gap
You may have heard of the “CME GAP.” But, what does it mean, and how can it affect this market?
Here is a daily August CME chart, which starts from July 21, 2020 and runs through mid-day on August 6, 2020.
There are two yellow lines highlighted — we look at this as the “CME GAP.” These gaps have become infamous because of wild weekend rides in Bitcoin. The CME contract closes at 5pm CST on Friday and then reopens at 5pm CST on Sunday.
The reason they have become infamous is because they usually fill back in! We really only know of one that has not, and that was in the early start of the CME contract near 17K in Bitcoin price.
We also have highlighted two green lines. These lines are our moving average support and our base level of support at 11,555.
The market is clearly in a bull run. The question is what “CME GAP” will the market look to attack…17K or 9725? Most Bitcoin enthusiasts will say 17K, and we can only keep our fingers crossed, but be aware of that downside GAP.
Happy Trading from the Hehmeyer Trading Desk.
