Crypto Investing
25 Apr 2022

Week 17 Crypto Market Update: BTC, ETH, DOT, APE, and SAND

Ananda Banerjee

The crypto market kept trading in the tightest ranges over the weekend, suggesting growing indecision among the bears and bulls. On Monday, this market cratered by almost 6.5% due to the weakness in the S&P 500 and the broader equity space.

It is evident that the crypto space is still closely correlated with the equity market, and buyers are still nervous regarding the growing inflation and the possibility of a 250bp (basis point) hike in the interest rates. Net-net, the space is being dominated by skeptics for now.

Broader Market Highlights

  • The ECB (European Central Bank) plans to hike interest rates for the first time since 2011. (Not suitable for the leveraged positions.)
  • According to Santiment, the crypto market might have to weather the strong equity correlation for a few more weeks.
  • Nansen—a leading data analytics firm—has inferred that leading networks like Avalanche, BNB Chain, and Polygon have managed to maintain stable growth despite the overall activity volume decline in 2022. Read the report, here.

On-Chain Metrics

Outlook: Steady

Even though the market continues to trade in a range, Bitcoin’s inflow to exchanges continues to dip each day, showing the emergence of strong holding hands.

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

Compared to the 17.11K Bitcoin (BTC) moving into exchanges over the last 7 days, Week 17 saw the number dropping to 16.08k, hinting at easing selling pressure and the continued HODLing outlook.

Inferences

  • Despite the dip, the selling pressure might not be strong enough to cause a massive crash.
  • Minor corrections can be expected if the exchange inflow increases midweek.
  • Most Bitcoins are moved into the exchanges during the weekdays.

Fear-and-Greed Index

Outlook: Fearful

This time in March, the Fear-and-Greed index was trading at 51 on the back of the relief rally. Week 17 paints an entirely different picture, with the index level languishing at 23—one point lower than where it was during the last week.

Week 17 Crypto Market Update

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

The dips suggest fear, which can be validated by the growing indecision among buyers. For the crypto market to show a steady directional move, the fear-and-greed index levels should cross above 35.

Inferences

  • The Fear-and-Greed levels have been holding steady over the past few weeks, hinting at a directional move.
  • Increased fear can be best handled by Doing Your Own Research (DYOR).
  • Talks regarding the fed-driven hikes might be causing anxiety across the broader crypto market.

Current Conversion Standard: $1 = (₹80)

Key Coins

Bitcoin

Outlook: Bearish

Bitcoin (BTC) has been trading flat during the past seven days, dipping by less than 1%. However, the monthly price crack of over 10% has kept buyers on the sidelines. As per the daily chart, BTC is trading in an ascending channel, with a developing red candle trying to breach the supporting (ascending) trendline.

Source: Trading View

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

If BTC breaches the support level with high selling pressure, you might expect bulls to lend support at $36,796 (₹29,43,680). On the way up, $43,323 (₹34,65,840) seems like a crucial resistance level where bears might be active. As per the oscillator or the RSI* indicator, the buying pressure seems weak, with the levels dropping below 40.

*Relative Strength Index

Ethereum

Outlook: Neutral

As of today, Ethereum (ETH) is down by over 4%. Analysts believe that the delaying “Merge” is one of the primary reasons for this unexpected correction at the counter. The 4-hour chart, however, suggests a conflicting price action with ETH, forming a descending wedge pattern, which is usually bullish.

Source: Trading View

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

However, the MACD (Moving Average Convergence/Divergence) indicator is signaling negative momentum, with the MACD line dropping below the signal line and moving farther. If ETH manages to drop lower than the current trading levels of $2,832 (₹2,26,560), thereby breaking the lower trendline, there might be support at $2,605 (₹2,08,400).

For any move on the upside and towards the upper trendline of the wedge, ETH first needs to breach the 20-EMA** and 50-EMA lines. If ETH manages to break out of the wedge, it might experience resistance at $3,175 (₹2,54,000)

**Exponential Moving Average

Polkadot

Outlook: Bearish

Despite shedding close to 8% today, Polkadot still managed to end the week in green with a 0.7% gain. Going by the 4-hour chart, DOT, currently trading at $17.32 (₹1,385.60), doesn’t look all that strong.

Source: Trading View

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

During the past few trading sessions, multiple descending triangle patterns have been breached, with DOT currently trading close to the immediate support level of $17.13 (₹1,370.40). If DOT manages to breach the immediate support level as well, you might see the prices dropping to $16 (₹1,280)

In case DOT recovers from here, $18.14 (₹1,451.20) and $18.53 (₹1,482.40) might act as the crucial resistance levels. As of now, even the MACD indicator is hinting at bear strength, as the MACD line has dropped under the baseline and the signal line.

ApeCoin

Outlook: Neutral

With weekly gains of over 55%, ApeCoin has been one of the go-to crypto assets for enthusiastic explorers. Currently trading at $17.14 (₹1,371.20), APE seems to be moving all right as per the 4-hour chart. APE appears to have successfully completed two higher-high and higher-low formations, and the 20-EMA line appears to be moving well above the 50-EMA mark.

Source: Trading View

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

However, the RSI is making lower highs, causing a negative divergence. This development means that buyer momentum might be weakening at the APE counter. If APE manages to move higher from here, $18.01 (₹1,440.80) seems like a strong level to breach in order to continue with the higher-high formations. In case APE craters a bit, you can expect bulls to lend support at $16.15 (₹1,292)

The Sandbox

Outlook: Neutral

It has been a tepid month for metaverse tokens with the likes of Th