Crypto Investing
4 Apr 2022

Week 14 Crypto Market Update: BTC, ETH, DNT, AXS, and ADA

Ananda Banerjee

The broader crypto market didn’t crack over the weekend. After the rally that piqued investor interest in Week 13, we wanted to see the market consolidate steadily without any of those frowning dips. Thankfully, the crypto landscape reacted positively and met our expectations—currently trading with a touch of green, up by close to 0.80%.

Market Highlights

  • Ethereum crossed the highly resistive mark of $3,500.
  • Axie Infinity’s Ronin network was breached, but the HOLDers didn’t seem to skittle out there were hardly any addresses with selling orders.
  • district0x (DNT) experienced massive buying pressure (sellers canceling pending orders) and broke out of several resistance zones.

On-Chain Metrics

Outlook: Bullish

The number of bitcoins (BTCs) moving into the exchanges has dropped considerably over the past few weeks. As per the on-chain metric that concerns “Inflow to Exchanges,” the BTC volume held at the exchanges has dropped as low as 14.73K, the lowest in over a year.

Week 14 On-chain

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

In mid-March, the asset volume moving into exchanges rose to as high as 90K, causing a lot of selling pressure. The situation has changed now, as strong hands seem to be holding on to the BTCs, unfazed by the talk of an upcoming correction.

Week 14 BTC liquidity

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

As far as liquidity (BTC available for trade) is concerned, the number seems to have gone down further over the weekend. This development might also hint at increased buying and HODLing as illiquid BTC volume is on the way up.

Fear-and-Greed Index

Outlook: Bullish

Last week, the Fear-and-Greed index was sailing high, at 60. Yet, our approach was cautionary. Today, at the onset of Week 14, the 52 level looks quite convincing and robust. This week, the market has shed its “Greed-Specific” stance to turn neutral.

Week 14 Fear-and-Greed Index

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

The development suggests that the volatility might not be as high, and we can expect more buyers to show interest in specific crypto assets.

Current Conversion Standard: $1 = (₹77.48)

Key Coins

Bitcoin

Outlook: Moderately Bullish

Trading almost 17% higher than the previous month, BTC seems to be consolidating for now. At $46,171 (₹35,77,329.08), BTC looks neutral on the 4-hour chart for now. However, with the 20-EMA* line still above the 50-EMA line, the short-term trend doesn’t seem weak.

*Exponential Moving Average

Week 14 BTC

Source: Trading View

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

The ADX (Average Directional Movement Index) indicator is touching the low of 20, whereas the price action seems to be in a range for now. Also, with RSI** in the value buying zone (close to 50), a strong up move cannot be discounted if BTC manages to breach the $48,121 (₹37,28,415.08) level. For moves on the down-size, you might expect strong support at $44,729 (₹34,65,602.92)

**Relative Strength Index

Ethereum

Outlook: Neutral

With monthly gains of over 30%, Ethereum (ETH) seems to be marching towards new all-time highs. However, even though the long-term analysis looks promising, you might expect a small correction of sorts in the near future.

Week 14 ETH

Source: Trading View

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

As per the 4-hour chart, ETH is trading at $3,506 (₹2,71,644.88). Now when we pair the RSI with the price action, a divergence is visible—RSI trading down and prices moving up. You can expect the divergence to flatten the uptrend for now. If ETH moves lower from here, you might find support at the EMA lines and at the $3,373 (₹2,61,340.04) level. On the upside, $3,520 (₹2,72,729.60) is the immediate resistance level to breach.

district0x

Outlook: Neutral

District0x (DNT) has recently breached several resistive levels to clock weekly gains of almost 120%. However, there is more to DNT than the harmonious peaks. According to the daily chart, DNT is currently trading at $0.183 (₹14.179).

Week 14 DNT

Source: Trading View

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

The RSI is on its way to 90, which is highly overbought. Therefore, you can expect DNT to correct a bit in the short term, with important support levels placed at $0.147 (₹11.39) and $0.095 (₹7.36), respectively. Also, if DNT wants to move higher from here, it might first need to breach the defiant  $0.208 (₹16.12) level.

Axie Infinity

Outlook: Neutral

Yes, the bridge (Ronin Network) connecting Axie Infinity to the Ethereum blockchain was hacked a few days back. However, the heist didn’t dampen AXS’s confidence as the crypto still managed to move higher by close to 30% over the past month.