Crypto Investing
28 Mar 2022

Week 13 Crypto Market Update: BTC, ETH, DGB, ICP, and SHIB

Ananda Banerjee

The crypto stealth rally is here, and it doesn’t seem to ignore any of the popular tokens. Buoyed by positive market sentiments, the much-awaited Ethereum merge, and new metaverse events like Daler Mehndi’s foray into the crypto space, it seems like the market will do no wrong as we kick-start the week.

Market Highlights

  • Bitcoin (BTC) springs past the $47,000 mark without much resistance for the first time since early January.
  • The Ethereum ecosystem experiences massive asset movements, riding on the ETH 2.0 search spike.
  • As of 28 March 2022, the market is up by over 5%, with almost every crypto asset in the green.

On-Chain Metrics

Outlook: Bullish

If you have followed the Week 12 analysis closely, you would know that BTC liquidity is a major on-chain indicator signifying overall market sentiments. A decrease in the percentage of highly liquid and liquid BTC followed by an increase in the percentage of illiquid BTC shows that people are holding on to their assets.

On-chain Liquidity Week 13

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

Last week, the highly liquid supply dropped by almost 0.5%, and now that number has gone down by almost 2%. This metric followed by a close to 1% increase in the illiquid supply shows that BTC is gaining steam, as people are accumulating it even during the rally. 

Fear-and-Greed Index

Outlook: Cautionary

It has been ages since the Fear-and-Greed Index moved past 50. Throughout week 12, too, it was languishing at 30 and awaiting a positive push. Over the past week, things changed quite a bit as the Fear-and-Greed index is currently holding on to the 60 levels, which causes a tilt toward market “greed.”

Week 13 Fear-and-Greed

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

As per the current levels, people are accumulating cryptos as if there is no tomorrow, and even a small correction cannot be discounted at this moment. It may be better to maintain a cautionary stance for now and wait for the levels to come closer to and stay at the 55 mark for at least a week before making any commitments.

 

Current Conversion Standard: $1 = (₹76.25)

Key Coins

Bitcoin 

Outlook: Bullish

Up by almost 11% over the past week, Bitcoin (BTC) is currently trading at $46,999 (₹35,83,673.75). The major crypto player is seeing a lot of hourly movement, courtesy of the stealth rally.

Now let’s now look at the daily chart to analyze the mid-term trend.

Week 13 BTC

Source: Trading View

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

BTC has recently broken above the ascending wedge pattern with ease. With the 20-EMA* line (black) moving above the 50-EMA line (blue), the uptrend seems strong enough for now. And the Moving Average Convergence/Divergence (MACD) line, which has now gone above the histogram with massive bars, indicates fast-paced price action.

However, we need to be a bit wary of the shooting star candlestick pattern that might lead to a correction of sorts. If BTC moves lower from here, we might expect it to find support at $45,675 (₹34,82,718.75). In case the uptrend continues, $51,180 (₹39,02,475) might be the next line of resistance to cross.

*EMA: Exponential Moving Average

Ethereum

Outlook: Cautionary

Ethereum (ETH) has had quite a month—with gains of almost 21% adding to its credibility. Considering the rage surrounding ETH 2.0 right now, we have pulled out the 4-hour chart to analyze the moves made by the second-largest crypto player.

Week 13 ETH

Source: Trading View

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

ETH is trading at $3,315 (₹2,52,768.75), with the RSI** moving at an overbought zone (where buyers usually tire out) of 75. As per the chart and the shooting star pattern, we might expect a moderate correction from the highs. If ETH moves lower, $3,089 (₹2,35,536.25) might be a good support level. For any move on the upside, it first needs to break the $3,364 (₹2,56,505) level.

**RSI: Relative Strength Index

DigitByte

Outlook: Cautionary

Digibyte (DGB), the scalability and smart contract-focused crypto asset, is currently one of the top weekly movers, registering gains of over 85%. The daily chart hints at some correction in the near term, with the RSI being in the overbought zone for now.

Week 13 DGB

Source: Trading View

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

As per the chart, DGB is currently trading at $0.039 (₹2.97) with an RSI of way above 80. As it is in the overbought zone, a small correction might be on the cards. In case DGB cracks, it might go as low as $0.022 (₹1.677), which is a strong support zone. If DGB considers moving up from here, courtesy of positive market sentiments, it might just have the legs to touch $0.049 (₹3.736), which is strongly resistive.

Internet Computer

Outlook: Volatile

Internet Computer (ICP) has gained close to 23% over the past month, after a year or so of not being at its best. Trading close to $22.65 (₹1,727.06), ICP is currently giving out mixed signals on the hourly chart. While the 20-EMA line is way above the 50-EMA zone, hinting at strength, the MACD momentum seems to be weakening over time.

Week 13 ICP

Source: Trading View

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

Also, ICP is trading in an ascending channel pattern and is very close to breaching the lower trendline. If it manages to break past the same, there might be support at $22.32 (₹1,701.9) and $21.41 (₹1,632.51), respectively. In case ICP moves back into the channel, it would need to breach the upper trendline to have any chance of moving close to $25 (₹1,906.25).

Shiba Inu

Outlook: Bullish

Despite the incessant token burning, Shiba Inu (SHIB) continues to be on the investors’ radar, thanks to the increasing ecosystem-specific use cases. Up by over 8,700%, year-on-year, SHIB continues to make decent strides each day, strengthening its position as one of the more reliable memecoins around.