Crypto Investing
3 Jan 2022

Week 1 Crypto Market Update: BTC, ETH, ICP, SHIB, and DOT

Ananda Banerjee

Happy New Year, readers! And while we wanted to start 2022 with a soaring bull run, the crypto market seems to be having other ideas. Despite the recovering Bitcoin hash rate, talks about Web 3.0 and its stance as a Public Database, and Shiba Inu’s expected DAO launch, the market has been trading flat over the past week. 

Fact Check: In simple terms, Hash Rate signifies the speed of mining

And while we are still euphoric about how the crypto realm looked for the majority of 2021, a market uptick of 1.41% (at the time of publishing) doesn’t exactly justify the same.

Conversion Standard: 1$ = ₹80.20

Fear-Greed Index: Still Jittery

We come bearing bad and good news. While the Fear & Greed Index is currently stagnant at 29, 11 points down from where it was a week earlier, the progression is still heartening. In December 2021, the Index was languishing at 25. 29, therefore, seems like an improvement. 

As far as the market breadth is concerned, investors aren’t taking fresh calls in haste. Most crypto enthusiasts seek a definite move, regardless of the direction, which is the right strategy to mitigate risks.

Disclaimer: Insights mentioned are time-sensitive. Kindly DYOR to stay safe.

Crypto-Index

Outlook: Neutral

The global crypto index is in a state of limbo for now and sending out mixed signals. As per the hourly chart, it is trading above the important support line of 100-EMA (Orange). And while it completes the three lower highs pattern(denoted by the ticks), the sentiment is more neutral than bearish.

*EMA- Exponential Moving Average

Crypto Index hourly

Source: Trading View

Disclaimer: Insights mentioned are time-sensitive. Kindly DYOR to stay safe.

The 20-EMA line (Black) is still placed above the 50-EMA (Blue) line, which wards off the chances of a massive dip. Also, the RSI is trading close to 50, which is more like a demand zone for any asset class. Currently trading at $308074(₹2,47,07,534.8), the CIX needs to break all the EMA support lines to plummet lower. 

*RSI-Relative Strength Index

Bitcoin (BTC)

Outlook: Bearish

BTC dropped by almost 5.5% over the past week and is currently trading at $46987.13(₹37,68,367.83). And while it seems flat on the hourly chart, the EMA spacing doesn’t hint at an immediate bullishness.

BTC-USD Hourly

Source: Trading View

Disclaimer: Insights mentioned are time-sensitive. Kindly DYOR to stay safe.

As per the chart, BTC needs to breach the 20-EMA, 50-EMA, and 100-EMA lines, in the exact order to have any chance of moving up to $47981(₹38,48,076.20). On the downside, the immediate support is placed at $46717.74(₹37,46,762.75), and if breached, the price can go lower.

The RSI hints bearishness as the RSI line is hugging the signal line (Yellow) and is in the oversold region for now. 

Ethereum (ETH)

Outlook: Positive

Riding on some positive news regarding the upcoming Layer-2 scaling solutions, ETH was trading in positive territory at the time of publishing. And while it was down by almost 4.5% over the past week, the hourly chart continues to give steady signs.

ETH-USD Hourly

Source: Trading View

Disclaimer: Insights mentioned are time-sensitive. Kindly DYOR to stay safe

Firstly, the 20-EMA line is still trading above the 100-EMA and 50-EMA lines, thereby indicating strength at the counter. Also, the MACD seems positive for now. Still, ETH might move in a range for a while as it is trading under the signal line. 

*MACD- Moving Average Convergence Divergence

If it continues to move up from here, there might be strong resistance at $3849(₹3,08,689.80). For any move in the downward direction, ETH will need to break multiple EMA support lines to drop down to $3719(₹2,98,263.80) levels. 

Internet Computer (ICP)

Outlook: Positive 

A few trading sessions back, ICP quickly moved from $25.40(₹2,037.08) to $28(₹2,245.60), with the RSI peaking all the way up to 80. And since then, ICP has been consolidating, only to trade at $27.08(₹2,171.81) as we interact. 

ICP hourly chart

Source: Trading View

Disclaimer: Insights mentioned are time-sensitive. Kindly DYOR to stay safe.

The price action is happening well above the 100-EMA line as per the hourly chart. Even the RSI signals strength, now that it has moved beyond 50. If ICP moves up from here, $27.81(₹2,230.36) might be a key resistance level. 

For moves down south, immediate support is placed at $26.60(₹2,133.32), followed by the 100-EMA line. 

Shiba Inu (SHIB)

Outlook: Volatile/Bearish

A word of caution for those who are considering SHIB. Shiba Inu’s trading counter is one of the more volatile ones at CoinSwitch, and that is exactly why we have the Riskometer in place for you.

SHIB Hourly

Source: Trading View

Disclaimer 1: Insights mentioned are time-sensitive. Kindly DYOR to stay safe.

As per the hourly chart, SHIB is trading at $0.00003370(₹0.00270) for now. Also, if you see the Bollinger Band spacing, the bands have narrowed down a bit, which might drive the next leg of the SHIB trend whenever it arrives. Check Shiba Inu price live here.

If SHIB moves down from here, it might find support at the lower Bollinger envelope followed by the $0.00003340(₹0.00268) levels. However, if it tries to move up, the EMA-lines, Bollinger signal line, and the upper band might offer strong resistance. If it can break all the mentioned resistance zones, it might move up to $0.00003470(₹0.00278). 

Disclaimer 2: SHIB is a high-risk asset. Follow the Risk-o-Meter before anything else.

Convert Shiba Inu to INR directly on CoinSwitch.

Polkadot (DOT)

Outlook: Neutral

DOT has been moving up for quite some time now after completing the ‘Double-Bottom’ formation on the 1st of Jan. At present, DOT is trading at $28.86(₹2,314.57), which is almost 1.5% up compared to yesterday.

DOT hourly market update

Source: Trading View

Disclaimer: Insights mentioned are time-sensitive. Kindly DYOR to stay safe.

But then, the outlook is still neutral after the decent up move as RSI is still in the oversold zone, i.e., close to 45. The 20-EMA line is still placed above the 50-EMA line, which gives the trend riders a glimmer of hope.

If DOT moves up from here, it might experience a lot of resistance at $29.45(₹2361.89) and then at $31.88(₹2556.77). However, if the consolidation continues and DOT erodes some of the gains, $28.62(₹2,295.32) might offer support, followed by the 100-EMA line.

And that’s a wrap for today. While Week 1 of 2022 felt a tad sluggish, the market still looks steady for now. However, for getting ahead of the charts and analysis, it is advisable to start the year with technical and fundamental analysis.