Crypto Investing
20 Jun 2022

Week 25 Crypto Market Update: BTC, ETH, LTC, SOL, and DOGE

Ananda Banerjee

The broader crypto market experienced a deadbeat weekend with Bitcoin (BTC) cracking below the $20,000 (₹16,70,000) market and Ether (ETH) entering the three-digit space. Since then, the bulls have tried their best to get the prices and sentiments up. As a result, we are looking at a greenish Monday market—currently trading at 6.57% gains.

It hasn’t been an easy month for crypto, or any other high-beta asset class (equities included). Growing stagflation (inflation with stunted economic growth), interest rate hikes to cut off institutional leverage and talk of centralized lenders like Celsius and 3AC approaching insolvency have forced the market into submission. Yet, the hope of a revival lingers as some key cryptos are looking surprisingly robust on the charts, and many believe that they have bottomed out so the only way ahead is up.

Broader Market Highlights

  • Web 3.0 gaming adoption is on the rise, with Immutable launching a $500 million fund to assist developers working on gaming protocols.
  • Simon Dixon, the co-founder of BnkToTheFuture, believes that Celsius should follow a tokenized (giving security tokens for offsetting losses) recovery plan to compensate customers better. 
  • Despite facing a lawsuit for it, Elon Musk has yet again started pushing Dogecoin amid the growing market bearishness.

Overall, we can expect Week 25 to be bittersweet for the broader market, with some recovery on expected lines, following strong statements and strategic moves.

Crypto Index (CRE8)

Outlook: Bearish

The crypto market index still appears to be bearish as its 20th July value couldn’t go beyond the 17th July peak. Lower highs are visible, but it seems the market seems to be moving upwards from here, with a positive change of 8.29% being recorded in the past 24 hours.

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

Inferences

  • The index is still losing steam from a weekly perspective—correcting over 9% in the interim.
  • We are looking at an upward breach of 2,400, which might trigger a trend reversal. 

Current Conversion Standard: $1 = (₹83.50)

Key Coins

Bitcoin

Outlook: Neutral

Bitcoin, up by almost 9.50% in the past 24 hours, is sending mixed signals on the 4-hour chart. Currently trading at $20,095 (₹16,77,932.50), BTC seems to be trading in a descending triangle pattern. If BTC breaks the above trendline by crossing the immediate resistances of $20,215 (₹16,87,952.50) and $21,447 (₹17,90,824.50), you can expect it to move higher.

Source: Trading View

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

On the downside, $20,000 (₹16,70,000) seems like an important psychological support level. A further breach can push BTC toward $18,047 (₹15,06,924.50), the next support zone. On the contrary, the Moving Average Convergence/Divergence (MACD) line seems to have risen above the signal line, demonstrating some positive momentum at the counter.

Ethereum

Outlook: Bearish

The bears still seem to be pretty much in control as far as Ethereum is concerned, despite it being up by over 12% in the past 24 hours. The blue ticks on the 4-hour chart indicate this downtrend. Currently, ETH is trading at $1,086 (₹90,681), close to the immediate support of $1,011 (₹84,418.50). Breaking this support would mean a re-entry into the three-digit space.

Source: Trading View

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

On the upside, ETH must first breach the (orange) 50-EMA* line and then the $1,286 (₹1,07,381) level. That way, it will have a chance to close in on the $1,433 (₹1,19,655.50) level. The Relative Strength Index (RSI) seems to be in the value buying zone (at 50) and might trigger a slight upward move—market sentiments permitting.

*Exponential moving Average

Litecoin

Outlook: Moderately Bullish

Amid last week’s bloodbath, Litecoin (LTC) was one of the crypto assets to survive, with gains of almost 16%. If we look at the daily chart, LTC seems to be trading inside an asymmetrical triangle pattern, closing in towards the upper trendline. LTC, currently trading at $51.70 (₹4,316.95), might first have to breach the (black) 20-EMA line to move upwards—even towards the $73.82 (₹6,163.97) mark.

Source: Trading View

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

On the downside, the $40.95 (₹3,419.32) line seems like a strong support zone, breaching which might push LTC lower and out of the triangle. The RSI is in the value zone of 45, which might be good news for LTC lovers in the mid-term.

Solana

Outlook: Neutral

Solana (SOL), best known as a reliable Layer-1 blockchain platform, has registered close to 16% gains week-on-week, despite the network outages. As discussed in crypto price analysis, SOL continues to move in a range, even on the daily chart. Depending on the market sentiments, it might soon breach the resistance zone of $37.18 (₹3,104.53) to move higher or crack through the support zone of $31.45 (₹2,626.07), only to inch lower in a while.

Source: Trading View

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

Currently, SOL, trading at $32 (₹2,672), is closer to the support. The RSI indicator hints at a bullish divergence—marked by the blue lines—which might indicate a near-term trend reversal. 

Dogecoin

Outlook: Bullish

Despite dropping by almost 30% over the past 30 days, Dogecoin seems to be heading upward, riding on Elon Musk’s optimistic tweets. The 4-hour chart suggests DOGE is in the value buying zone RSI zone of 52.

Source: Trading View

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

As per the price action, DOGE is currently trading at $0.058 (₹4.84), with the 20-EMA line and $0.052 (₹4.342) being the immediate support levels. On the upside, DOGE needs to breach the 0.063 (₹5.26) levels to have any chance of moving higher.

Wrap-Up

Even though most crypto assets are up today, expect the broader market downturn to continue for a while.

At this time, reining in the investing horses and being mindful of any Dead Cat Bounce (false breakout) is advisable. A reliable Do-Your-Own-Research (DYOR) strategy needs to be in place as always.

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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