Crypto Investing
21 Mar 2022

Week 12 Crypto Market Update: BTC, ETH, ADA, MATIC, and LUNA

Ananda Banerjee

The crypto landscape underwent some tectonic shifts over the past week. From a crypto rally of sorts to the Bored Apes creators revealing a new metaverse on the “Otherside,” things escalated rather quickly through Week 11. Despite the ongoing conflict in Ukraine, the market has shown resilience.

Market rally Gif

After moving past the extremities, the crypto market is currently trading with gains of almost 1% over the past 24 hours, and it seems appropriate to look back at the on-chain metrics, social sentiments, and the key assets of last week to try and understand its moves better.

On-Chain Metrics

Outlook: Bullish

Bitcoin (BTC) liquidity, or the lack thereof, is a crucial on-chain metric in the crypto world. Liquid assets signify active buying and selling, whereas illiquid supply acts as a sink—the lower supply pushing the prices up. In simple terms, an increase in the percentage of illiquid Bitcoin means that people are holding on to their BTCs, and the supply is on the lower side.

BTC liquidity

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

As per the on-chain analysis depicted above, the percentage of liquid and highly liquid BTC has dropped significantly. Consequently, the illiquid asset percentage has increased, which is one of the primary reasons for the weekly up move.

For now, the sentiments are bullish, with BTC supply falling short of the overall purchasing demand.

Fear-and-Greed Index

Outlook: Improving

If you follow our weekly market updates, you would know that crypto enthusiasts in weeks 10 and 11 were quite fearful, owing to mixed social sentiments and higher volatility. A level of 23 wasn’t all that positive. However, things seem to be changing in Week 12, with the Fear-and-Greed index jumping up to 30.

Disclaimer: Insights mentioned are time-sensitive and should not be considered financial advice. Please DYOR.

While the market participants are still wary of a correction, the breadth seems to be shifting into the positive territory for now. Still, the levels may have to cross 35 before we see more buyers joining the space.

Current Conversion Standard: $1 = (₹78.20)

Key Coins

With on-chain and sentimental analysis out of the way, it’s time to move to the key market movers and their time-bound charts.

Bitcoin

Outlook: Neutral

With monthly gains of almost 5%, Bitcoin has tried to keep buyers and sellers interested in the crypto space. BTC is currently trading at $41,247 (₹32,25,515.40), which is a make-or-break level for the asset in the short term.

BTC

Source: Trading View

Disclaimer: Insights mentioned are time-sensitive and should not be considered financial advice. Please DYOR.

If BTC manages to break the strong resistance level of $41,694 (₹32,60,470.80) with high volumes, you might see it moving up. On the downside, $40,305 (₹31,51,851) seems like a strong support zone, below which we can expect a steady correction.

The RSI* is at sub-50 levels, and BTC might take a more pronounced direction once 50 is breached. As of now, you can wait for the 20-EMA** line (the black one) to cross above the 50-EMA line (blue) for the up move to resume.

With the “Bit”coin Billion Day approaching on 28th March, crypto enthusiasts might fancy an up move more than anything else.

*RSI: Relative Strength Index

**EMA: Exponential Moving Average

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Ethereum

Outlook: Volatile

Ethereum had a pretty good week, as it registered gains close to 10% during the time. Currently, at $2,883 (₹2,25,450.60), Ether (ETH), as per the 4-hour chart, is trading in a broadening pattern. The pattern signifies price volatility, and ETH needs to break through any of the trendlines drawn for it to assume a direction.

ETH market update

Source: Trading View
Disclaimer: Insights mentioned are time-sensitive and should not be considered financial advice. Please DYOR.

The supplemental Moving Average Convergence/Divergence (MACD) indicator hints at weakening momentum in the short run. The blue (MACD) line needs to cross above the yellow (Signal) line for ETH to resume the weekly trend. However, if ETH drops from here, breaking the lower trendline, it might encounter support at $2,743 (₹2,14,502.60).

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Cardano

Outlook: Neutral

The past week has been quite good for Cardano (ADA) as it gained almost 9%. As of now, ADA is trading at $0.886 (₹69.29) and makes a symmetrical triangle pattern on the hourly chart. According to the chart, ADA needs to break the upper trendline to have any chance of moving higher than the current levels.

Cardano

Source: Trading View
Disclaimer: Insights mentioned are time-sensitive and should not be considered financial advice. Please DYOR.

On the downside, the $0.875  (₹68.43) level acts as a solid support, and if breached, the price might crack further. The trading volumes are pretty underwhelming, and therefore, ADA might move inside the triangle for some more time before assuming a directional trend.

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Polygon

Outlook: Neutral

After a couple of depleting weeks, Polygon’s token MATIC seems to be back on track with weekly gains of almost 6%. We pulled out the 4-hour chart and saw MATIC trading at $1.475 (₹115.35). The RSI is hugging the 50 levels at the moment, which is still lower than the RSI signal line (yellow).

Polygon