Crypto Investing
25 Jan 2022

Week 4 Crypto Market Update: BTC, ETH, SOL, LUNA, and DOGE

Ananda Banerjee

Yes, the crypto market crashed. Still, if you ask us, we wouldn’t consider this a worrying signal. Over the past few months, the equity-crypto correlation skyrocketed, which meant massive leverage across both these asset classes. And the latest crypto market crash followed by a steady dip in the global equity space is a good way to break free of this biased correlation.

Once the crypto market bottoms out, HODLers might see a steady rise, as people will start making good use of the cash in hand. However, until the market stabilizes, it is better to watch from the sidelines or keep HODLing. 

Fact Check: ‘Bottoming Out’ means the end of the depleting or the consolidation phase.

Conversion Standard: $1 = ₹82.13

Fear-Greed Index: Extreme Fear and Caution Advised

The global market sentiments concerning crypto aren’t filled with optimism. Also, the F&G value of 22 in Week 3 doesn’t look all that bad now. At present, the Fear & Greed Index is fixed at 13, which is still a two-point increment compared to yesterday.

At this time last month, the index value was at 39, which was even considered fearful by some. Some crypto evangelists consider ‘Extreme Fear’ a dip-buying opportunity, but we would ask you to do your own research and keep waiting until clear indications are available. 

Fear and Greed

Source: Alternative Me / Fear-and-Greed Index

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

Crypto-Index (CIX)

Outlook: Bearish

Currently trading at $205780.65(₹1,69,00,764.80), the global crypto index isn’t looking all that strong on the hourly chart. For now, it is trading alarmingly close to the $205779(₹1,69,00,629.30) support level. If breached on the downside, the next support levels are at $202860(₹1,66,60,891.80) and $198475(₹1,63,00,751.80), respectively.

Important: Support levels are the lowest points till which an asset might correct before rebounding. Similarly, Resistance Levels are the highest zones to which an asset might gain before retracing. 

Crypto Index

Source: Trading View

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

The trading volumes are still decent, but the red bars hint at a seller-intensive space. Still, if CIX moves up from the current levels, it might encounter resistance at $212711(₹1,74,69,954.40). Also, an up move can only be a possibility if the 20-EMA line (Black) crosses above the 50-EMA line (Blue).

*EMA- Exponential Moving Average

Bitcoin (BTC)

Outlook: Bearish

Despite an increase in mining difficulty and Hash Rates, BTC hasn’t been trading as per expectations. Even today, it is down by almost 1.5%. As per the hourly chart, the trading volumes are quite low and don’t instill optimism. Also, the ‘Reverse Flag-and-Pole’ pattern might hint at a further dip if the ascending trendline is breached.

Bitcoin week 4

Source: Trading View

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

On the upside, BTC needs to breach the higher trendline to move up. In that case, it might encounter strong resistance at $36852(₹30,26,654.76). Also, BTC is trading at $34861(₹28,63,133.93), which is close to the $34970(₹28,72,086.10) support line. Also, you might expect it to show some strength if it touches the support line and moves up from here.

Ethereum (ETH)

Outlook: Bearish

Low volumes on the hourly chart forced us to pull out ETH’s daily chart. Trading currently at $2399(₹1,97,029.87), ETH seems poised for a dip in case it breaks the immediate support placed at $2377(₹1,95,223.01). Even the RSI indicator is close to 30 and in an oversold region. This sign indicates weakness at the ETH counter.

*RSI-Relative Strength Index

ETH week 4

Source: Trading View

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

However, if ETH moves up from here, it might find immediate resistance at $2658(₹2,18,301.54). Breaching this might add some strength to the otherwise bearish movements. And just for the specifics, the 50-EMA line (Blue) just crossed under the 100-EMA line (orange), thereby corroborating further weakness and expected dips.

Solana (SOL)

Outlook: Bearish

Solana has been having a tough time lately. While the network has been facing transaction issues for quite some time now, the latest market crash only escalated things from bad to worse. Trading at $87(₹7,145.31), SOL has eroded almost 37% of its gains over the past week.

SOL Week 4 Crypto Market Update
Source: Trading View

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

As per the hourly chart, the 20-EMA line moves parallel to the 50-EMA line, which doesn’t hint at an up move. Also, for now, SOL is trading close to the strong support line of $86.25(₹7,083.71). Any breach on the downside might cause a series of dips. On the way up, there might be some strong resistance at $93.32(₹7,664.38). Plus, the RSI is close to 30, signifying a seller-intensive counter.

Terra (LUNA)

Outlook: Moderately Bearish

LUNA has been one of the few assets to have recovered a bit over the weekend. Still, it is trading at $63.10(₹5,182) and needs to break the lower trendline to move downward. If it dips and breaks the wedge pattern, LUNA might find some support at $59.78(₹4,909.73).

LUNA

Source: Trading View

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

For moves on the upside, the upper trendline needs to be breached for the upward trend to resume. However, for that, LUNA needs to first breach the strong resistance at $69.79(₹5,731.85). Still, the trading volumes on the hourly chart aren’t all that convincing and make the LUNA counter moderately bearish. 

Dogecoin (DOGE)

Outlook: Volatile

The last few days haven’t been easy for meme coins. DOGE, the global market leader when meme coins are concerned, did drop quite a bit, all the way to $0.12(₹9.85). However, it did gather back some strength to get back to 10th place in the crypto rankings. At present, DOGE is trading at $0.132(₹10.84) and might find some support at $0.13(₹10.68) and $0.12(₹9.85), respectively.

Dogecoin

Source: Trading View

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

However, if the volatile DOGE counter suddenly starts an up move, the strongest resistance might be at $0.170(₹13.96). But then, the EMA lines are diverging, which isn’t a particularly great sign for uptrends. Track DOGE price live here.

Well, that’s a wrap for today. Just to reiterate, the crypto market isn’t at its strongest at the moment, but previous instances involving crashes and corrections have taught us the value of persistence and HODLing.

Convert DOGE to INR directly on CoinSwitch!

Moreover, panic selling has seldom resulted in anything good.  Also, if some of these assets interest you in HODLing and you feel like monitoring the trends, download the CoinSwitch app and get started.

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

Table of content