Crypto Investing
9 May 2022

Week 19 Crypto Market Update: BTC, ETH, ADA, XTZ, and THETA

Ananda Banerjee

The crypto market is dipping. And it’s dipping deep. With bitcoin’s price levels languishing closer to the $33,000 level— the market cap, as of 9th May 2022, has dropped to almost $1.4 billion.

The crypto market turbulence is more real than ever. And it isn’t just the Warren Buffet’s $25 statement in play here. There is more:

The Otherside launch caused a Gas War of sorts and the APE token plummeted due to the heavy and quick dump. With Bitcoin nosediving under $35K (₹28,27,300) for the first time since early January and TerraUST struggling hard to maintain the peg parity, the crypto realm isn’t full of undying optimism for now.

Broader Market Highlights

  • The crypto market is down by over 3.5%.
  • Terra (LUNA) lost $6 billion in TVL as the Anchor protocol dropped the Annual Percentage Rate from 19.4% to 18%, pushing a few depositors out of the ecosystem.
  • Amid the market turbulence, Terra kept adding to its BTC deposits.
  • Popular social media platform Instagram is planning to open its doors to NFTs relevant to Ethereum, Solana, and a few other blockchains.

On-Chain Metrics

Outlook: Improving

The volume of Bitcoin (BTC) flowing into the exchanges is still on the higher side—the second consecutive weekly increase. This development indicates that traders might be selling off at every opportunity. Despite this, Week 19 seems a tad optimistic with the BTC inflow to exchanges experiencing the sharpest drop in over five months on 7 May 2022—dipping from the panicky highs of 60.87K to a manageable 27.27K.

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

The drop might have resulted in Terra (LUNA) buying yet another chunk of BTC while the prices kept dipping. However, the BTC inflow to exchanges spiked again on 8 May 2022, with asset volume going all the way up to 76.24K signifying some selling pressure. 

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

The nature of the BTC held has changed over the week as well. Illiquid assets have gone up by close to 1%, hinting at strong holding sentiment. The liquid and highly liquid BTC holding percentages dropped by 2.8% and 2% respectively.

Inferences

  • Despite the drop in BTC inflow volume over the weekend, the selling pressure remains.
  • BTC liquidity seems to be dropping, hinting at HODLing tendencies.
  • The BTC inflow pattern has been erratic, which demonstrates volatility.

Fear-and-Greed Index

Outlook: Extreme Fear

As of now, the fear-and-greed index has dropped to 11, which pushes us into an “extremely fearful” territory. Based on the current developments, Doing Your Own Research (DYOR) seems to be the best way forward in the crypto realm. Interested buyers might need to watch out for the fear-and-greed levels to cross the 25 mark before taking any definite calls.

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

Inferences

  • The fear-and-greed index has dipped the most over the past three months, making it harder for traders and investors to take specific calls.
  • Any move above 25 needs to be supplemented with heavy trading volumes and positive social sentiments.

Current Conversion Standard: $1 = (₹80.78)

 

Key Coins

Bitcoin

Outlook: Neutral

As of today, BTC is trading at a 3.5% discount. If we pull out the 4-hour chart, we can find BTC at $33,489 (₹27,05,241.42), which sits on the lower trendline of the descending channel pattern. If the lower trendline is breached, we can expect the prices to move closer to $30,000 (₹24,23,400).

Source: Trading View

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

The Relative Strength Index (RSI) indicator is in the oversold region, showcasing “bearish” strength. If the bulls manage to keep BTC afloat and within the channel, we might expect some resistance at the (black) 20-EMA* line. In case BTC manages to break through, the upper trendline of the channel will come under the scanner with the next resistance at $36,795 (₹29,72,300.1).

*Exponential Moving Average

Ethereum

Outlook: Bearish

Ethereum has dropped 12.56% of its gains in the past seven days. The crypto market continues to be turbulent, and Ether (ETH) continues to follow suit. As per the 4-hour chart, ETH seems to be demonstrating a diverging descending wedge pattern.

 Source: Trading View

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

ETH is currently trading at $2,447 (₹1,97,668.66)—a level closest to the lower trendline of the wedge pattern. If ETH manages to stay above the lower trendline, we can expect the bulls to try and push the prices over the 20-EMA line for now. With RSI in the oversold region, the negative momentum might take a breather for now. If not, the prices could crack further with ETH looking at the $2,200 (₹1,77,716) levels in the short- to mid-term.

Cardano

Outlook: Neutral

Cardano is currently trading at $0.68 (₹54.93)—down by over 12%, week-on-week. According to the 4-hour chart, ADA seems to have broken out of the converging wedge pattern, hinting at a further dip in the short term.

Source: Trading View

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

If ADA manages to move up from here, it will have to break above the lower trendline of the wedge pattern to evoke buying sentiments. For any kind of upmove, the 20-EMA line might act as the immediate resistance, which also coincides with the $0.76 (₹61.39) level. Also, with RSI trading under 30 and ADA in the oversold region, we might see the selling pressure weakening in the near term.

Tezos

Outlook: Bearish

Tezos (XTZ) has managed to close the week with a dip of 4%, despite the crypto market facing massive bearish headwinds. The daily chart pattern suggests that XTZ is currently trading at $2.371 (₹191.53)—a tad lower than the immediate support line of $2.425 (₹195.89), which has now turned into a strong resistance zone.