Welcome to IntoTheBlock’s newsletter. We are trying to create a different newsletter for crypto fans. Not about news, but data and analytics. Every week, we are going to try to deliver valuable data insights about the crypto market.
Big update: Last Friday we unveiled a new series of 14 derivatives market indicators focused on futures and perpetual swaps. We added a new category called "Derivatives" for the top crypto-assets in which you will find insights like Futures and Perpetual Swaps Volume, Open Interest, Funding Rate, Basis, Turnover Ratio and many more. Check out the derivatives indicators for Bitcoin here
Coin of the Week: Red week for the crypto-asset market as the price of some top currencies like Bitcoin and Ethereum dropped more than 9% and 11% respectively during the last 7 days. We decided to analyze from a blockchain perspective how the biggest stablecoin, Tether, is performing in a bear market against Bitcoin using some of IntoTheBlock's top metrics. Check the details below.
ITB Bitcoin Update: $8,647.93 (5am EST 02/28/2020)
Every week, the IntoTheBlock team gives you a summary of what we're seeing in Bitcoin. This week we are using the "In/Out of the Money Around Current Price" indicator.
In/Out of the Money Around Current Price
What does In/Out of the Money Around Current Price (IOMAP) mean?
(IOMAP) uses machine learning to identify the ten most relevant clusters of investor positions at a range of +/- 15 percent of the current price.
The analysis offers a very granular view of investor positions that are susceptible to near-term price movements. Given that it looks at individual investor positions, the IOMAP analysis can be used to complement traditional support/resistance models by quantifying the positions of individual investors.
The IOMAP chart above shows that a large number of tokens are slowing a rally in the price of Bitcoin. We see that with the current price of $8,647.93, there's a strong level of resistance between $8,600 and $8,900, where 871k addresses are holding 643k BTC at an average price of $8,767. If Bitcoin breaks the through that level, then it might experience a minor resistance between $8,900 and $9,150, where 547k addresses previously bought around 293k BTC.
Looking at the support levels, the IOMAP analysis reveals that Bitcoin has the strongest support level at the range between $8100 and $8380, where almost 810 thousand holders previously bought 539k Bitcoin. From that perspective, it is likely that Bitcoin could remain solid at the current levels despite a market decline.
See the In/Out of the Money Around Current Price indicator here
The "Coin of the Week" section evaluates an alternative cryptocurrency. This week, we focus on Tether using our "Large Transactions" and "Average Time Token is Held" indicators.
Large Transactions
What does Large Transactions mean?
*Intotheblock defines Large Transactions as transactions greater than $100K USD
During a bear market, investors use stablecoins to protect their assets against price volatility
Bitcoin's price on 02/27/20 dropped to $8,759, representing a weekly decrease of 9.5% compared to a price of $9,674 on 02/20/20.
Large Transactions average for last 7 days = $4.54BN/day, representing a 24% decrease vs last week's average of $5.56BN/day.
If you take a closer look at Bitcoin, you will be able to see that as the price and large transactions dropped this week, the number of transactions in Tether increased dramatically.
Large Transactions average for last 7 days = $437m/day, representing a 11% increase vs last week's average of $393m/day.
The average time that a token stays on an address before being transferred.
If you take a closer look at the holding average for the top cryptocurrencies, it's clear that Bitcoin has the strongest holding community, in which the average time the token is held is 2.8 years.
For those who have been in the crypto space for a while, you probably heard the term HODL (Hold on for dear life), which basically consists of holding an asset for as long as possible, and you see this in Bitcoin.
Using the intotheblock’s Average the time token is held, we are able to see that investors hold Tether for a shorter period of time if we compare it to other cryptocurrencies. The average time is held is 1.3 months
This can be related to the actual use cases of stablecoins in comparison to other crypto assets.
An in-depth data-centric comparison between ETH and ETC. We dig into the differences both chains tell us when we look deeper using the intotheblock analytics.
Predicting Cryptocurrency Prices Using Deep Learning We will showcase different prediction models for different crypto-assets and explore some advance ideas for both traders and researchers.
