Crypto Report

Introducing Kalkine’s ‘Crypto Report’

Kalkine presents the ‘Crypto Report’ to explore the blockchain technology space. The reduction in bond yields amid inflationary pressures and proliferation of blockchain technology in varied industries ushered market players to seek a highly risky crypto asset class which may have the potential to yield positive returns.

Growing Significance

Cryptocurrencies use blockchain technology to record every transaction and are termed as digital currencies. Bitcoin is considered as the gateway asset into crypto that boasts the largest market capitalization reaching ~USD 456.30 billion (Source: Trading View as on 09 August 2022), the highest among all the cryptocurrencies, followed by Ethereum, Tether, Binance Coin, and Cardano.

Blockchain technology assumed greater significance for tracking and tracing products, payments, and remittances, identity management, benefiting a spectrum of industries from healthcare, government, and public services to manufacturing, finance, logistics, and retailing.

Kalkine’s ‘Crypto Report’ provides a technical analysis-driven research report on cryptoassets traded on global exchanges. Investments in cryptoassets can be high risk and volatile. You should seek appropriate advice and consider your objectives and risk appetite before making any decision in relation to such products. This report is released after considering the volatile trading dynamics and market timings on a weekly basis.

Market Opportunity

Governments, regulators, and companies are looking closely at bitcoin and other cryptocurrencies. The world’s one of the largest asset manager, BlackRock, opened two of its funds to the possibility of investing in bitcoin futures. The Bank of England has been exploring the possibility of its own central bank-backed digital currencies. This has been dubbed as “Britcoin”. Other central banks like the Federal Reserve have been doing the same.

S&P has launched three benchmarking indices to gauge the performance of stocks with exposure in bitcoin and cryptocurrency assets. These are - S&P Bitcoin Index, S&P Ethereum Index, and S&P Cryptocurrency Mega Cap Index.

With growing acceptance of blockchain technology and regulatory supervision, the S&P Crypto Currency Broad Market Index delivered gains of 39.84% since June 30, 2022 (till August 08, 2022) as compared to S&P 500 Index returns of 9.37% (Source: REFINITIV).

Given this backdrop, Kalkine’s Crypto Report offers below key attributes:

• Extensive Technical Research:  This report is purely based on a thorough technical analysis using parameters such as price action, trends, support, resistance, candlestick patterns, volumes, relative strength index (RSI), simple moving averages (SMA), etc.
• Swing Trading Opportunities: By virtue of short-term gains in cryptocurrency, swing trading provides an edge over fundamental analysis as investors may be able to generate desired returns in a short time.
• Investing Edge from Long or Short Positions: Cryptocurrencies are traded in a spot as well as future platforms, therefore they offer a hedging tool for investors which allows them to minimize risk by entering the trade in either or both directions i.e., as a short position or as a long position.
• Pre-defined Risk-Reward Scenario: Risk-Reward ratio represents the prospective reward an investor may achieve for the risks undertaken. Investors can weigh their decisions in the light of an appropriate entry-level, support and resistance levels, and a pre-defined stop loss.

Few Cryptocurrencies Witnessed a recovery from the lower levels in Short Time

Bitcoin (BTC) price advanced by ~14.66% in two weeks after giving the breakout of the falling trendline resistance at the USD 21512.50 level on July 18, 2022. The movement was also supported by RSI (14-Period), along with the 21-period and 50-period SMA trend.

Data Source: REFINITIV, Analysis: Kalkine Group

Ethereum (ETH) generated a return of ~27.86% after witnessing a breakout of the downward sloping trendline resistance level at USD 1421.60 on July 18, 2022. The price movement was also supported by technical indicators such as RSI (14-Period), 21-period SMA, and 50-period SMA.

The returns generated by above cryptocurrency (Bitcoin and Ethereum) were higher than the returns yielded by S&P Cryptocurrency Broad Digital Market (BDM) Index over the same time.

To summarize, Kalkine’s ‘Crypto Report’ aims to provide insights and information in a manner that is easy to comprehend, covering diverse cryptoassets. It must be noted that insights provided under this product are solely based on technical parameters, and fundamental performance have not been considered.

Note

Any information in this report relating to digital currency or other cryptoasset types (cryptoassets) is based on the law that applied at the time the report was prepared. The laws that apply to cryptoassets (and how a particular cryptoasset is regulated) may change. You should be aware that the value of any investment is variable and can go down as well as up and you may not get back the amount invested.  Past performance is not indicative of future results. You should also be aware that most cryptoassets are not regulated by the FCA and are not protected under the Financial Services Compensation Scheme or the Financial Ombudsman Service. Further, Capital Gains Tax (CGT) may be payable on profits made from investing in cryptoassets.