Crypto Investing
7 Feb 2022

Week 6 Crypto Market Update: BTC, ETH, MANA, SHIB, and ONE

Ananda Banerjee

It has been a ‘Happy’ homecoming week for crypto. Contrary to the expected sideways movement, the market took the path less taken by going green. As we speak, the global crypto market is up by almost 5%, riding on the shoulders of the top crypto players, i.e., Bitcoin and Ethereum.

But the upbeat market sentiments aren’t only driven by the most influential crypto assets. Instead, the growing popularity of Metaverse events, meme coin resurgence, and key crypto purchases with Ted Cruz making his latest BTC buy public are some of the reasons why the crypto market has been doing all right by the traders, investors, and HODLers.

Current Conversion Rate: 1$ = ₹78.78

Note: We generally present on-chain metrics only once every month, but the positive market breadth simply forced our hand in a good way.

On-Chain Metrics

Outlook: Progressive Strength

Do you know how BTC inflow works and what it signifies? Well, that is exactly the on-chain metric we shall discuss now. BTC flowing right into crypto exchanges means that people are holding them close to sell. It’s just like putting up a house on a reselling platform so that a buyer can find you and purchase it at the right price.

BTC on-chain metric

Source: Chainalysis

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

Over the past week or so, BTC flowing into exchanges has slowed down, marking a positive shift in the market sentiments. This metric shows lesser selling pressure and even means that people are holding onto their Bitcoin. 

Fear-Greed Index (F&G)

Outlook: Positive

Did you know that around this time, last month, the Fear & Greed index (F&G) was languishing at 10? Seems eons ago, right!

Well, today it is steadily poised at 45. Even though the current levels still indicate fear, the market conditions look significantly better.

Fear and greed Index

Source: Alternative Me/ Fear-and-Greed Index

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

The current F&G level has also improved significantly over the one recorded last week. Just so you know, 45 levels were last identified on 22nd December 2021. Yes, that took a long time to reappear!

Now let’s shift our attention to the key crypto players that have been making a lot of noise:

Bitcoin (BTC)

Outlook: Bullish

Currently trading at $42,759 (₹33,68,554.02), BTC has been in the positive territory over the past seven days, registering gains of almost 13%. Coming to the hourly chart, the uptrend looks steady for now, with the 20-EMA, 50-EMA, and 100-EMA lines moving well above each other. The hourly volumes are steady, and RSI seems to be moving around the demand zone of 65.

*EMA- Exponential Moving Average

*RSI-Relative Strength Index

Bitcoin hourly chart

Source: Trading View

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

As per the chart, BTC might have just broken out of the ascending triangle pattern at $41,788 (₹32,92,058.65), which is also the current support level. If it moves up from here, it might find resistance at $43,511 (₹34,27,796.58), which signifies the breakout point of yet another ascending triangle pattern. 

If BTC dips from here, it might have to first break the ascending trendline (in black), mentioned support level, and then the EMA lines to drop further.

Ethereum (ETH)

Outlook: Neutral

ETH is currently trading at $3,085 (₹2,43,036.30) and has moved up by almost 19% over the past week. If you look at the hourly chart, the EMA lines are placed comfortably for the uptrend to continue. As per the Bollinger band strategy, ETH’s price action has started to diverge after squeezing down to $3,028 (₹2,38,545.84) levels. Check ETH to INR in real-time. 

Ethereum Week 6

Source: Trading View

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

To move up from the existing levels, ETH’s price needs to breach the upper Bollinger band that also coincides with the $3,110 (₹2,45,005.80) resistance level. In case of a dip, $3,047 (₹2,40,042.66) might be the immediate support zone for ETH, followed by the middle Bollinger band, 50-EMA line (Orange), and lower Bollinger band.

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Decentraland (MANA)

Outlook: Bullish

Well, metaverse use-cases, like hosting real-time events like marriages and games, are working well for Decentraland and its native token, MANA. Currently trading at $3.32 (₹261.55), MANA has registered weekly gains of over 25%.

MANA token chart

Source: Trading View

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

If you pay attention to the chart, you will notice that it needs to break the immediate resistance of $3.38 (₹266.27) in case it plans on moving higher. For any short-term drop in the price, MANA might find immediate support at $3.31 (₹260.76) and $3.22 (₹253.67), respectively. 

Also, if you are into formations, MANA seems to have formed an ascending chart pattern, which might break out in either direction, depending on market sentiments.

Shiba Inu (SHIB)

Outlook: Neutral

As per CoinMarketCap, Shiba Inu has outpaced Bitcoin yet again to become the most popular crypto player in January. With a layer-2 solution pretty much on the cards, SHIB seems to be making new highs with steady trading volumes to account for.

SHIB week 6

Source: Trading View

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

Currently trading at $0.0000279 (₹0.0022), SHIB is up by over 30%, as per the weekly analysis. On the hourly chart, SHIB looks steady, with the 20-EMA line moving well above the 50-EMA line. As far as the levels are concerned, if SHIB breaches the first resistance of $0.0000281 (₹0.00221), it might have the legs to move up to $0.00002970 (₹0.00234).

However, if SHIB ends up shedding gains, it is expected to find support at $0.00002772 (₹0.00218) levels, south of which it might drop more. 

Harmony (ONE)

Outlook: Bullish

Currently trading at $0.22 (₹17.33), ONE is already up by almost 25% over the past week. And it is showing a steady price action. As per the hourly chart, you can see three high-highs made by ONE followed by two lower-lows.