Welcome back to the IntoTheBlock newsletter. We have created a different type of newsletter for crypto fans that is not about news, but about data and analytics. Every week, we deliver valuable data insights about the crypto market.
BTC Price Analysis ($9,447 5am EST): Bitcoin price is up 3.82% during the past week, and using our In/Out of the Money Around Current Price indicator (IOMAP), we see that in order to reach $9,700 again it needs to go through 1.12 million addresses that are holding 807 thousand Bitcoins. Looking at the levels of support, $9,300 it could hold strong where 1.2 million addresses previously bought 762 thousand BTC. With this analysis, Bitcoin could be having problems going higher than $9,600 and don't fall below $8,600.
As stated by Yahoo Finance, The Coinbase Effect refers to "what happens when the price of a cryptocurrency goes stark, raving mad moments after it’s been listed on the San Francisco-based crypto exchange Coinbase."
We have seen this phenomenon with several crypto assets in the past. Last week, it was OmiseGO’s turn. We decided to compare two assets by looking at what happened when they were each first listed on Coinbsase. The following is a comparison of the "Coinbase Effect" on OmiseGO and Chainlink. We compare not only changes in price, but also the effect that listing on Coinbase had on each asset’s network.
1) There was an Immediate Price Surge after Listing on Coinbase
The OMG token had a 200% parabolic rally after it was listed on Coinbase on May 21.
From May 21 to May 22, the price surged a staggering 107%.
At the moment of writing, OmiseGo is sitting $1.64, meaning that's is up 19% during the last 7 days.
2) Network Activity Increased Dramatically during listing day
What does Addresses Stats mean?
Provide a view of both user engagement and growth. Every day, ITB reports the number of addresses that had any activity (“Active Addresses") while also indicating the number of New Addresses created vs those that have transferred out all their tokens (“Zero Balance Addresses”).
The OmiseGO network saw explosive activity during the Coinbase listing day as 4.9 thousand addresses were active, representing a 99.6% increase compared to the previous day.
This number of active addresses was the highest number since November of 2018.
The Chainlink network recorded the highest activity ever during Coinbase listing day as 10.02 thousand addresses were active on that day.
The only day that has come even close was March 12 of this year, the same day BTC's price crashed over 35%. And even then, there were only 5.62 thousand active addresses, 44% less than on the listing day.
ITB measures the number and volume of on-chain transactions in a given period.
Along with the price rally of May 21, the number of On-Chain transactions increased by 83.9% compared to the previous day.
On that day, there were 8.57 thousand transactions with a total volume of 55.81 million OMG tokens.
Although there have been days with more on-chain transactions for the OMG token, this was the day with the highest on-chain volume ever for this crypto-asset.
At IntoTheBlock, we’ve spent months working on deep-learning-based predictive models for crypto-assets. We are a data science company at our core, and we wanted to take on one of the biggest challenges in crypto. We have failed a lot and we have learned a lot, and we finally arrived at models with unprecedented levels of accuracy. So it is time to show some results!
Check out our predictions on our Twitter account for free. We are posting the direction of price (up or down) for BTC every hour for which there is an available prediction.
What can you get until the official launch of Predictions on ITB?
You will get not only the hourly Twitter predictions but also daily reports with the predictions' accuracy
Every day until we launch the live product on the IntoTheBlock platform, we will share with you the daily report of one of the prediction models for Bitcoin. We will send this by email to all ITB subscribers.
At IntoTheBlock, we’ve spent months working on predictive models for crypto-assets and it is time to show some results!
In this session, we will show you deep neural network architectures that are predicting the price of crypto-assets in real-time based on different thresholds. We will share some of the lessons we learned trying to predict recent market events and some of the new ideas we are working on. We will showcase different predictive models and reveal some of their most recent predictions.
