Crypto Investing
10 Jan 2022

Week 2 Crypto Market Update: BTC, ETH, ICP, LUNA, and LINK

Ananda Banerjee

Hello readers! Before jumping right into those charts and indicators, let us address a glaring concern. Yes, the Crypto market is in a corrective state, led by rising interest-rate confirmation. For the uninitiated, Federal Reserve’s stance towards interest-rate hikes is a good way to make borrowing costlier. 

And as investors will have less money to spare for buying Bitcoin, most of them are already liquidating assets, thereby pushing the prices down. And this means that the correction might be a temporary phase to weed out the leveraged positions and initiate fresh buys.

Despite BTC acting up in 2022, the crypto space still looks bullish at the macro level. With Metaverse gaining precedence, PayPal planning a Stablecoin launch, and select, use-case-specific Altcoins showing chart-centric stability, the crypto arena doesn’t look wholly beaten down. 

Conversion Standard- 1$ = ₹80.80

Fear-Greed Index- Still Panicky

The F&G index was at 29 last week but has dropped to 23 in the second week of 2022. And while the crypto state might look all tense, 23 seems like an improvement over 16, a figure that showed up last month.

Surprisingly, in terms of movement, retracement, bottom formations, and even the Fear and Greed Index, the current crypto market looks similar to the one we experienced way back in the last week of July 2021. And we all know how it moved after hitting those lows. 

Fear and Greed Index

Source: Alternative Me/Fear-and-Greed Index

Disclaimer: Insights and Data mentioned are Time Sensitive. Kindly DYOR to stay safe.

Crypto Index

Outlook- Neutral

Despite dropping to $250408(₹2,02,32,966.4) a day back, the global crypto index or CIX quickly recovered and is currently trading at $262704(₹2,12,26,483.20). 

Week 2 Crypto Index

Source: Trading View

Disclaimer: Insights and Data mentioned are Time Sensitive. Kindly DYOR to stay safe.

And if you quickly go over the hourly chart, you would find CIX trading sideways for now. At present, the candles are hugging the 20-EMA and 50-EMA lines. For CIX to move up from here, the 20-EMA line (Black) needs to cross over the 50-EMA (Blue), to form a golden crossover of sorts.

*EMA-Exponential Moving Average

If CIX improves and starts moving up, it needs to breach the critical resistance level at $266720(₹2,15,50,976) to have any chance of breaking above the 100-EMA (Orange) resistance. And if the market goes lower than this, immediate support seems to be placed at $257141(₹2,07,76,992.80). As far as the momentum is concerned, RSI is trading close to 55, signaling neutrality. 

*RSI-Relative Strength Index

Bitcoin (BTC)

Outlook-Neutral

The last few days haven’t been easy if you are interested in BTC or even HODLing some. However, BTC bounced from the $40.6K(₹32,80,480) levels and is currently trading at $42010.85(₹33,94,408). Also, the RSI recovered from the 50- level, thereby putting bearish speculations to rest, at least for now.

Week 2 BTC Hourly chart

Source: Trading View

Disclaimer: Insights and Data mentioned are Time Sensitive. Kindly DYOR to stay safe.

On the hourly chart, BTC is still moving in a range and lower than the 100-EMA line. However, the 20-EMA and 50-EMA lines are closing in, thereby signaling a crossover of sorts. However, you need to keep a close eye and let the crossover assume a definite direction before taking an interest.

As for the key levels, if BTC moves lower, it might find strong support at $41890(₹)(23.6% Fib retracement level), $41600(₹), and then at $40560(₹). For moves on the upside, it needs to breach $42360(₹) as the strongest resistance level to have any chance of going further up. 

Ethereum (ETH)

Outlook- Moderately Bearish

ETH holders can see the ascending channel pattern on the hourly chart. Also, ETH is currently moving in a range. And the candles need to break out of the channel pattern to signify the next leg of the trend.

Week 2 crypto market update ETH

Source: Trading View

Disclaimer: Insights and Data mentioned are Time Sensitive. Kindly DYOR to stay safe.

Assuming ETH, currently trading at $3159.57(₹2,55,293.25), breaks the pattern on the downside, it might get strong support at $3000.89(₹2,42,471.91). If it ends up breaching the descending trendline on its way up, it might also have to break out of the strong resistance zone of $3264(₹2,63,731.20), following which it might experience another strong resistance level at $3361(₹2,71,568.80).

Internet Computer (ICP)

Outlook- Bullish

ICP is yet another crypto asset to feature in market updates across consecutive weeks. Moreover, the coin has been up by almost 37% over the past week, and it is even experiencing decent hourly trading volumes. 

Week 2 ICP

Source: Trading View

Disclaimer: Insights and Data mentioned are Time Sensitive. Kindly DYOR to stay safe.

As per the hourly chart, ICP, trading at $36.46(₹2,945.97), is currently consolidating a bit, despite being well above the 20-EMA, 50-EMA, and 100-EMA lines. If it continues its upward journey from here, there might be some solid resistance to combat at $37.70(₹3,046.16). On the flip side, it needs to breach the strong support at $35.9(₹2,900.72) and 20-EMA to move lower. 

Terra (LUNA)

Outlook: Neutral

Trading at $72.17(₹5,831.34), LUNA is up by almost 2.5% today. And, while it might look like a productive opportunity, we urge you to be careful. As per the hourly chart, LUNA is closely hugging the 20-EMA and 50-EMA lines. 

Week 2 LUNA

Source: Trading View

Disclaimer: Insights and Data mentioned are Time Sensitive. Kindly DYOR to stay safe.

And while the golden crossover persists, the MACD indicator is signaling a divergence with the MACD line crossing under the signal line despite sideways price action. This development means that you might see the price moving sideways or a touch lower than the current levels in sessions to come.

If it moves lower, key support levels are placed at $70.91(₹5,729.52) and $68.34(₹5,521.87). However, if it ends up moving up from here, LUNA might face resistance at $75.17(₹6,073.73).

Chainlink (LINK)

Outlook: Neutral

After realizing gains of almost 23%, LINK seems to be taking a breather. At present, LINK is trading at $27.60(₹2,230.08) and is up by close to 5% at the time of publishing. However, the hourly chart is sending out neutral signals as the RSI stands flat at 50, signaling sideways movement.

Week 2 Chainlink

Source: Trading View

Disclaimer: Insights and Data mentioned are Time Sensitive. Kindly DYOR to stay safe.

Also, as per the current trading signals, LINK breaks the higher-high pattern and might consolidate a bit from here. If it goes lower than the existing levels, there might be support at $27.27(₹2,203.41), which also coincides with the 20-EMA line. For speculative moves on the upside, there might be strong resistance at $28.45(₹2,298.76). 

And that’s a wrap for today. Just to reiterate, the market doesn’t look all the weak despite the sell-offs and the dropping Fear-Greed index levels. The correction was due after crypto had a brilliant run in 2021. And most importantly, HODLing is still a reliable option. 

Still, if some assets moving into Week 2 look attractive, you can simply download the CoinSwitch app and take a closer look at them. 

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.

writer

Ananda Banerjee

Content Writer

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