Crypto Investing
31 Jan 2022

Week 5 Crypto Market Update: BTC, ETH, ADA, MANA, and ANKR

Ananda Banerjee

The last week of January doesn’t exactly leave us thrilled. The market is still moving sideways and has dipped by almost 5% at the time of publishing. And with the Financial Budget around the corner, the volatility is nothing but expected. 

Week 4 was all about Cross-Chain crypto projects, the Metaverse, talks regarding DeFi, and NFTs. Despite a busy week, the market hasn’t been all that convinced about an up move. 

But with the global equity markets continuing to feel the heat, the sustained crypto correction isn’t looking all that ominous. 

Today, we analyze some on-chain metrics to help you understand the general market breadth and the possibilities ahead.

Current Conversion Rate: 1$ = ₹80.50

Note: Last Week of Every Month will feature On-Chain Metrics for a better understanding of the Crypto Space

On-Chain Metrics

Outlook: A Crypto Winter?

Are we up for a long bear cycle? Well, it’s too early to predict anything. However, we have some on-chain BTC metrics for you to look at, which might just help you understand the current market better. 

Metric 1: Exchange Inflows

What does it Indicate?- BTC moving into Exchanges means that people are planning to sell their holdings.

Source: https://markets.chainalysis.com/

As of yesterday, the exchange inflow valuation in USD was close to $1.8B (₹1,34,42,07,60,000). And while this might seem significant, it is lower than the $4B (₹2,98,71,28,00,000) mark recorded on the 21st of January. 

Metric 2: Trading Intensity

What does it Indicate?- Higher trading intensity means a bigger order book, which signifies buying preferences. Also, Trading Intensity is inversely correlated with Exchange Inflows. 

Source: https://markets.chainalysis.com/

As of 30th January, Trading Intensity is moving close to the 5.5 mark, which hints at indecision and consolidation.

Metric 3: Exchange BTC Flows

What does it Indicate?- Here is an indicator that shows how BTC is moving across the globe upon being exchanged. Crypto-to-Crypto exchanges reveal the strength, whereas Crypto-to-Fiat signifies weakness.

Source: https://markets.chainalysis.com/

Over the past week, Crypto-to-Fiat exchanges have skyrocketed, which means people are cashing out by liquidating their holdings.

Metric 4: Held Liquidity

What does it Indicate?-  A lot of liquidity, when it comes to BTC holdings, means that people are contemplating constant buying and selling. Illiquid BTCs act like sinks and usually lower asset availability.

Source: https://markets.chainalysis.com/

As we speak, Illiquid BTC seems to have crossed the 15,500,000 mark, which means people are holding onto the assets. Also, the reduced supply might help recover the prices over time.

Fear-Greed Index

Outlook: Skeptics Galore

If you follow the F&G Index closely, you would know that it was moving near 13 in Week 4. However, on 30th Jan, the market did see some positive signs, with the index value moving up to 29. And this was the highest level it could reach since the 3rd of January. At present, the F&G Index is close to 20, which is still an improvement over the previous week.

Source: Alternative Me/ Fear-and-Greed Index

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

Now let us move to the key crypto players, expected to make some noise through Week 5

Bitcoin (BTC)

Outlook: Neutral

At present, BTC is trading at $37,132(₹29,89,126) and has been up by almost 4% over the past week. On the 4-hour chart, BTC seems to be respecting the $36,852(₹29,66,586) support line. Any move from the existing trading level downside might find another support at $34,970.54(₹28,15,128.47). 


Source: Trading View

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

If BTC manages to break the ascending trendline and the coinciding resistance level of $39,031(₹31,41,995.50), it might gather some steam to move upwards. The RSI level is close to 45, which hints at lesser selling pressure at the BTC counter. 

Ethereum (ETH)

Outlook: Bearish

Ethereum is currently trading at $25,27.90(₹2,03,495.95), and like BTC, has gained close to 4% over the past week. However, the hourly chart doesn’t inspire a lot of confidence. ETH is moving in a rectangular channel, i.e., a zone separated by a resistance and a support line. If ETH manages to break the support at $2,491(₹2,00,525.50), we might see a sharp dip. Check the ETH to INR convert rate.

Source: Trading View

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

However, if ETH moves up from here, it will have to breach the hard-to-break resistance of $2,640(₹2,12,520) to show strength. The RSI is barely above 40, which hints at fewer sellers.

Buy Ethereum at the best rate with CoinSwitch!

Cardano (ADA)

Outlook: Bearish

While the Cardano-backed Decentralized Exchange ADAX is already among us, the price action seems to be in focus for now. Currently, ADA is trading at $1.02(₹82.11), which equates to a 25% drop over the past month. As per the hourly chart, the Bollinger bands have squeezed a bit, which might hint at a breakout in either direction.

ADA
Source: Trading View

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

However, as ADA is trading well below the 20-EMA and 50-EMA lines, breaching the lower band of the Bollinger pattern might be a possibility for now. 

If ADA wants to move up from here, it would need to break above the middle Bollinger band (Orange). The 20-EMA line (Black) is moving under the 50-EMA line (Blue), and the hourly volumes are pretty flat for now. 

Decentraland (MANA)

Outlook: Bullish

Despite the crypto market behaving like the wild west, MANA has been one of the few success stories over the past week. In the last 7 days, this asset has moved up by over 25%, literally against the low market tide. 

Source: Trading View

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

Currently trading at $2.54(₹204.47), MANA seems to be moving merrily on the hourly chart. It seems to have completed three higher lows and is awaiting confirmation on three higher highs to embark on a positive trend. For now, the trading volumes look decent. And MANA seems to be respecting multiple support levels at $2.48(₹199.64) and $2.36(₹189.98), respectively.

If it moves up from here, the immediate resistance is placed at $2.56(₹206.08). Also, the 20-EMA line is comfortably placed above the 50-EMA line for now. 

Ankr (ANKR)

Outlook: Neutral

ANKR is trading at $0.076(₹6.12) and has gained over 5% over the past few trading sessions. However, the 4-hour chart isn’t short of surprises, with the volumes looking flat and RSI trading close to the demand zone of 60.

Source: Trading View

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

Also, the 20-EMA line seems to have just crossed over the 50-EMA line to confirm a Golden Crossover. As far as levels are concerned, any dip will see ANKR trying to breach the EMA lines and then the support level of $0.071(₹5.71). On the upside, there might be some strong resistance at $0.084(₹6.76) and $0.090(₹7.245), respectively. 

And that’s a wrap for today. To summarize, January draws to a jaded close, and we expect February to come bearing better news. Still, the market looks corrective for now, and we would still recommend caution over anything else.

Still, if some of the crypto assets are making you drool, you can always download the CoinSwitch app and get down to trading asap.

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.

writer

Ananda Banerjee

Content Writer

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