Crypto Investing
14 Feb 2022

Week 7 Crypto Market Update: BTC, ETH, ADA, EGLD, and DOGE

Ananda Banerjee

Week 6 was good for the crypto market. Bitcoin (BTC) closed in on the 46K mark. The BitFinex Hack found closure as stolen assets were recovered. Aave came up with a decentralized social platform or the Lens Protocol. And yes, Polygon raised some funds in its futuristic bid to scale Ethereum infinitely.

However, global economic whirlwinds of existing geopolitical uncertainties halted the crypto rally. Consequently, the market saw quite a bit of profit booking over the weekend. But that’s not all we have to say about this fine Monday leading to week 7 of 2022.

Current Conversion Rate: 1$ = ₹79.55

On-Chain Metrics

Outlook: Strong

In our week 6 market update, we discussed how BTC exchange inflow works and what it means for the short- and mid-term future of the crypto space. Fewer inflows are good as people aren’t motivated to sell their assets. And while we saw a positively low BTC inflow count on 6 February, it is standing even lower a week later, at 13,253.

The BTC Inflow count is at its lowest in over a year. And this figure means that people are not looking to panic sell.

Inflow to Exchanges

Source: Chainalysis

Disclaimer: Insights mentioned are time-sensitive. It should not be considered as financial advice. Kindly Do Your Own Research (DYOR).

Fear-and-Greed Index

Outflow: Positive

The Fear-and-Greed (F&G) Index level moved up to 54 on 9 February 2022. Five days later, we are still holding strong at 46, which might signify fear but not without a hint of optimism. As per the overall F&G trends in February, the crypto market seems to be holding steady, unlike January.

Fear and Greed Index week 7

Source: Alternative.me/ Fear-and-Greed Index

Disclaimer: Insights mentioned are time-sensitive. This should not be considered as financial advice. Kindly DYOR.

 

Now that the broader metrics are out of the way let’s focus on the key crypto assets.

Bitcoin (BTC)

Outlook: Moderately Bearish

Do not let the bearish outlook unsettle you. BTC did recover from the lows of $33,000 (₹26,25,150) to move up to $45,850 (₹36,47,367.50) a few trading sessions back. Since then, the BTC space has seen quite a bit of profit booking. The weekly gains have assumed a flat line as BTC is currently trading at $41,988 (₹33,40,145.40), down by less than 1%. Check the BTC to INR rate to see how much Bitcoin is trading at today.

BTC chart correction

Source: Trading View

Disclaimer: Insights mentioned are time-sensitive. This should not be considered as financial advice. Kindly DYOR.

The descending trending forms a descending triangle pattern, and you might see BTC shedding some more if it breaches the immediate support levels of $41,788 (₹33,24,235.40) and $41,206 (₹32,77,937.30), respectively. For any moves on the upside, the $42,890 (₹34,11,899.50) level might offer some resistance, followed by one at $43,511 (₹34,61,300.05). Buy Bitcoin in India at the best rate.

As per the four-hour chart, the volumes are low yet steady. And this insight might cause BTC to trade sideways for now.

Ethereum

Outlook: Bearish

Currently trading at $2,874 (₹2,28,626.70), Ethereum has been moving sideways over the past few trading sessions. As per the hourly chart, Ethereum forms a pennant pattern and might breakout in either direction, depending on the market sentiments. Buy Ethereum at the best rate.

ETH market update

Source: Trading View

Disclaimer: Insights mentioned are time-sensitive. This should not be considered as financial advice. Kindly DYOR.

For moves on the upside, the Moving Average Convergence Divergence (MACD) needs to cross over the signal line. And if it moves above the baseline, we can expect a more definitive move on the upside with resistance at $3,037 (₹2,41,593.35). However, if Ether (ETH) breaches the lower trendline of the pennant, you can expect a sharp dip with support placed at $2,640 (₹2,10,012). (ETH to INR)

That said, the counter for now looks weak, though, as ETH has been trading below the 20-EMA* and 50-EMA signal lines.

*EMA: Exponential Moving Average

Cardano (ADA)

Outlook: Volatile

Despite surpassing the likes of Ethereum and Bitcoin in terms of attraction and transaction volume, Cardano hasn’t been an investors’ favorite. Trading at $1.03 (₹81.94), Cardano’s native token ADA has erased over 12% in a week. However, the counter, depicted by the four-hour chart, sends out mixed signals.

Cardano chart

Source: Trading View

Disclaimer: Insights mentioned are time-sensitive. This should not be considered as financial advice. Kindly DYOR.

If ADA moves up from these levels, it might complete a double-bottom formation, as depicted by the black circles in the graph above. And that might help ADA move up a bit in the short run, with $1.08 (₹85.91) being the immediate resistance.

However, the usual trend is replete with lower highs and lower lows, which are indicated by the ticks in the graph above. And if ADA follows the downtrend and dips further, it might find support at $1.02  (₹81.141) and $1.01 (₹80.34), respectively. Below these levels, ADA might see some sharper dips. Also, the RSI** is languishing close to the 30 mark, signifying more selling action at the ADA counter.

** RSI: Relative Strength Index

Elrond (EGLD)

Outlook: Bearish

Elrond, a platform that relies on a different breed of sharding and Proof-of-Stake consensus mechanism, seems to be doing all right for now. Trading at $189.53 (₹15,077.11), EGLD has been up by almost 14% over the past week. As per the four-hour chart, EGLD is currently moving in a range. The MACD, denoted by two black lines, is visible and might hint at a trend reversal.

Elrond 4 Hour Chart

Source: Trading View

Disclaimer: Insights mentioned are time-sensitive. This should not be considered as financial advice. Kindly DYOR. 

Even the Bollinger Bands have squeezed a bit, hinting at a breakout in either direction. If EGLD moves lower from here, it will find support at $185 (₹14,716.75) and $172 (₹13,682.60), respectively. To have any chance of moving upwards, it needs to breach the middle band of the Bollinger and the $207 (₹16,466.85) resistance level.

Dogecoin (DOGE)

Outlook: Neutral

DOGE seems to be in a corrective phase for now, after making a recent high of $0.173 (₹13.76). Currently trading at $0.145 (₹11.53), DOGE has formed a descending triangle pattern. If it breaks the $0.141 (₹11.22)  support level, it might correct a bit more till the next support, placed at $0.134 (₹10.66), is breached. Check DOGE price live here.

However, for moves on the upside, it will need to breach the descending trend line first and then the next resistance at $0.153 (₹12.17). Also, if you look at the four-hour chart, the trading volume seems to be holding steady.

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