Crypto Investing
27 Dec 2021

Week 52 Crypto Market Update: BTC, ETH, DOT, MATIC, and GALA

Ananda Banerjee

Attention Portfolio managers, investors, traders, and HODLers! The past week hasn’t just been about the holidays. Instead, as we inch closer to 2022, the crypto market seems to be replete with talks relevant to upcoming regulatory requirements, an altcoin-centric approach, a new Turkey-based crypto law in the works, and PWC’s foray into the metaverse.

And these factors were behind the market’s 2.28% rise over the past few trading sessions, accounted for at the time of publishing.

Conversion Standard: 1$ = ₹74.96

Fear-Greed Index: Neutral

While some might say that a Fear-Greed index value of 40 is still a tad bearish, we would like to think otherwise. Over the past few weeks, the market has shrugged off a lot of negative sentiments to rise to a more neutral ground finally. The index value languishing around 25 has started showing signs of improvement at 40. 

While the market breadth still advises caution, the neutrality isn’t as ominous as it was a week or two weeks ago. 

Disclaimer: Insights mentioned above are time-sensitive—kindly DYOR to stay safe

 

Crypto-Index

Outlook- Neutral 

As it’s the last market update of 2021, we decided to make the charts more insightful for crypto enthusiasts. For starters, let us look at the hourly chart of the Crypto Index, which hints at signs of recovery.

CIX hourly chart

Source: Trading View

Disclaimer: Insights mentioned above are time-sensitive—kindly DYOR to stay safe

Currently trading at $329862(₹2,47,26,455.5), the narrowing Bollinger bands might drive the next leg of the move. While the direction of the trend is still uncertain, considering the market sentiments, the 20-EMA line (Black) might soon move above the 50-EMA line (Blue). For the uninitiated, this signifies a ‘Golden Crossover’ and might result in some bullishness at the CIX counter. 

The trading volumes seem to be steady enough for now. Also, if the crypto index starts moving up from here, the upper band of the Bollinger might act as the immediate resistance. And for any move lower than the trading levels, there are multiple support levels at 20-EMA, 50-EMA, middle Bollinger band, and the lower Bollinger band. 

*EMA-Exponential Moving Average

Bitcoin (BTC)

Outlook: Moderately Bullish

Currently trading at $50946.88(₹38,18,912.16), BTC looks relatively stable on the hourly chart. After moving up by almost 8% over the past week, BTC seems to be holding steady, with the RSI levels placed at 60, which is still a demand zone for any asset.

*RSI-Relative Strength Index

BTC hourly chart

Source: Trading View

Disclaimer: Insights mentioned above are time-sensitive—kindly DYOR to stay safe

As per the indicators, the 20-EMA line has crossed above the 50-EMA line, which might hint at bullishness. If BTC moves up from here, $51165(₹38,35,328.4) is the immediate resistance level to look at. Any downside action needs to breach the EMA lines and multiple support levels at $50491(₹37,84,805.36) and $49757(₹37,29,784.72).

Ethereum (ETH)

Outlook: Neutral

Currently trading at $4056(₹3,04,037.76), ETH has moved up by almost 5% over the past week. At present, it is trading in a range, as per the hourly chart. Coming to the strength at the counter, the RSI is placed below 50 or at the oversold zone. The 20-EMA line crossing above the 50-EMA line gives a positive indication despite the moderate buying levels. However, the end move depends on the market sentiments. 

ETH hourly chart

Source: Trading View

Disclaimer: Insights mentioned above are time-sensitive—kindly DYOR to stay safe

As for the key levels, ETH needs to breach the ‘Pennant Pattern’ with conviction to assume a trend. If it breaks above the descending trendline, there is immediate resistance at $4083(₹3,06,061.68). Also, if it moves below past the ascending trendline and continues to breach the strong $4061 support line, it might head lower before finding another support at $4029(₹3,02,013.84)

Polkadot (DOT)

Outlook: Bullish

DOT seems to be on an upward trajectory, assuming gains of almost 28% over the past week. And if you look closely at the hourly chart, the trend seems stable. Coming to the RSI levels, DOT is firmly placed close to 65, which is already a demand zone for any crypto asset

DOT hourly chart

Source: Trading View

Disclaimer: Insights mentioned above are time-sensitive—kindly DYOR to stay safe

For levels on the chart, the 20-EMA line seems to be moving well above the 50-EMA line. Also, at $31.42(₹2,355.24), DOT seems to be trading above the ascending trendline for now. If it breaks lower, there are multiple support zones at the EMAs and also at $29.45(₹2,207.57). And if it continues to move up, the $31.88(₹2,389.72) resistance level will be hard to breach.

Polygon (MATIC)

Outlook: Neutral

MATIC seems to be consolidating a bit after gaining close to 34% over the past week. However, it still looks quite optimistic on the charts, with the MACD indicator showing trend strength as it’s well above the zero line. However, we would advise caution as the EMA line on the MACD indicator has crossed below the signal line for now.

MATIC week 52 market update

Source: Trading View

Disclaimer: Insights mentioned above are time-sensitive—kindly DYOR to stay safe

Coming to the hourly chart, MATIC is trading at $2.84(₹212.88), which is close to the 20-EMA signal line. If MATIC continues the uptrend, key resistance levels to look for are placed at $2.88(₹215.88) and $2.91(₹218.13), coinciding with the 38.2% and 50% Fib extension levels, respectively.

And if it starts eroding gains due to selling pressure, key support levels are at $2.66(₹199.39) and $2.48(₹185.90), respectively. 

Want to buy Polygon MATIC in India? Do it on CoinSwitch!

Gala (GALA)

Outlook: Bullish

It hasn’t even been a fortnight since CoinSwitch listed GALA. And over the past week, this crypto asset gained almost 27%. Currently trading at $0.545(₹40.85), GALA seems quite strong on the charts. And the MACD indicator is also signaling strength with the EMA line moving away from the signal line.

Gala market update

Source: Trading View

Disclaimer: Insights mentioned above are time-sensitive—kindly DYOR to stay safe

Coming to the chart, if GALA continues its upward journey, $0.55(₹41.23) and $0.60(₹44.98) can be important resistance levels to look at. And if it sheds some of its weekly gains, you might find the EMA lines offering decent support followed by $0.48(₹35.98) levels. 

Well, that’s a wrap for 2021. And we shall continue bringing time-sensitive and relevant market updates for you going into 2022.

But if you liked the Week 52 market update and are interested in testing some of these strategies hands-on, you can quickly