Crypto Investing
21 Feb 2022

Week 8 Crypto Market Update: BTC, ETH, SOL, AXS, and DOGE

Ananda Banerjee

Despite enjoying a cheery few weeks in February, the crypto market seems to have gotten back to the corrective phase. From Bitcoin failing to sustain the 40s to the OpenSea NFT Marketplace looking into a rumored hack, the last few days have been tumultuous.

On the bright side, crypto dominated the Super Bowl, Twitter allowed ETH-based creator tipping, and JPMorgan became the first global bank to have a presence in the metaverse. But the market still dipped by over 5% through the weekend, putting a dent in the overall market valuation.

Should you be scared? Probably not. Here’s an update to help you understand why.

Current Conversion Standard: $1 = ₹79

On-Chain Metrics

Outlook: Conflicting

As per the on-chain metrics, the Bitcoin Exchange inflow is still lower than its 180-day average. With Bitcoin (BTC) currently languishing at 19,937, people are not moving their BTC assets to the exchanges yet. This reveals that the market sentiment is still pro-crypto, and people are holding on to their assets for now.

Exchange inflow

Source: Chainalysis

Disclaimer: Insights mentioned are time-sensitive and should not be considered as financial advice. Kindly Do Your Own Research (DYOR).

However, BTC locked up on crypto exchanges seems to have moved over the six-month average, which indicates some selling pressure. But new inflows have slowed down, which might be a sign of steadying price action. Convert BTC to INR at the best rate here.

BTC Held on Exchanges

Source: Chainalysis

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

Fear-and-Greed Index

Outlook: Bearish

Despite the high of the “46” made last week, the Fear-and-Greed Index seems to be in a tumultuous state today. At 25, the market sentiments are stacked in favor of extreme fear. For some, this might be a signal to keep looking at dips. However, the current market volatility, the inability of BTC to hold key levels, and the rising geopolitical tensions suggest a more cautionary stance.

Fear and Greed

Source: Alternative.me/Fear-and-Greed Index

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

Now that the broader market movers are out of the way, let us discuss the fortunes of the crypto players who made a lot of noise over the past few days.

Bitcoin (BTC)

Outlook: Bearish

Currently trading at $39069 (₹30,86,451), BTC has dipped by almost 8% week on week. As per the four-hour chart, it has already formed three lower lows and three higher highs which together hint at a short-term correction. Despite standard trading volumes, the asset looks a tad weak on the charts, with the 20-EMA* (red) line moving under the 50-EMA (black) line.

*Exponential Moving Average: It is a type of moving average that places a greater weight and significance on the most recent data points.

BTC

Source: Trading View

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

As far as key levels are concerned, BTC needs to hold on to the important resistance level of $40,126 (₹31,69,954) and breach the same if it wants to move upwards. If it does, there will be resistance at $41,206 (₹32,55,274) and $41,788 (₹33,01,252), respectively. If BTC dips further, there is strong support at $38,026 (₹30,04,054) and then at $36,262 (₹28,64,698). Buy Bitcoin at the best rate!

Ethereum (ETH)

Outlook: Neutral

Despite shedding close to 5% over the past week, Ethereum doesn’t look all that weak on the hourly chart. Currently trading at $2,724 (₹2,15,196), Ether (ETH) seems to be moving towards a “Cup and Handle” formation. If it manages to break past the $2,759 (₹2,17,961) mark, you can expect a move on the upside. Convert ETH to INR.

Ethereum market update

Source: Trading View

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

If ETH fails to keep up and drops from here, the 20-EMA line might be the immediate support followed by $2,696 (₹2,12,984) and $2,633 (₹2,08,007). As far as the Relative Strength Index (RSI) is concerned, ETH is trading close to 50 or the demand zone, which might be positive.

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Solana (SOL)

Outlook: Volatile

As of today, Solana (SOL) is up by almost 6% and is currently trading at $94.22 (₹7,443.38). If we pull out the hourly charts, we will notice that the 20-EMA line has recently crossed the 50-EMA line. Also termed the Golden Crossover, this phenomenon might make SOL move higher.

Solana

Source: Trading View

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

The Moving Average Convergence/Divergence (MACD) line is still above the signal line but moving closer to it, which might hint at upcoming volatility. If the MACD line manages to move away, and SOL continues to tread positively, you might encounter some strong resistance at $96.2 (₹7,599.80). For moves on the downside, $93.8 (₹7,410.20), $91.8 (₹7,252.20), and $88.73 (₹7,009.67) might be the strong support levels.

Axie Infinity (AXS)

Outlook: Neutral

AXS, one of the more sought-after Metaverse and GameFi tokens, is already up by almost 5% (at present). Currently trading at $54 (₹4,266), it is sending out mixed signals on the hourly chart. To embark on a directional path, the 20-EMA line needs to separate from the 50-EMA line.