Speculative Fed tapering, looming Omicron threats, and the upcoming regulatory crypto bill were the primary market movers over the weekend. And they facilitated significant sell-offs in the existing crypto space. Should you be worried about the market correction or rejoice, the new value buying opportunities on the horizon is something we shall focus on in this week’s Crypto Market Update.
Fact Check: Fed tapering is a way the Central Bank cuts down on specific assets, thereby strengthening the USD in the process. As the asset cut might even concern Bitcoin, the market fear quotient seems to have amplified in the process.
Dollar to Rupee conversion standard: 1$ = ₹75.40
Crypto Index: Battered Down and Range-Bound
Did you notice that we pulled out a daily chart for the Crypto index to make you aware of the broader market movements? Firstly, the Crypto index is currently trading at $320823.65 (₹2,41,90103.2), which is quite a recovery after plummeting to almost $276715 (₹2,08,64311) levels a couple of days back.
For now, it is trading close to the $315498 (₹2,37,88549.2) support level and has to sustain the same if it wants to head upwards.
Where is the Crypto Index headed?
As per the mid-term analysis, the index needs to sustain support levels at $315498 (₹2,37,88549.2) and then at $295511.80 (₹2,22,81589.70) to move upwards. And if the index manages to hold on to the first support, we might see it move up to $333105(₹2,51,16117) in the short-term and up to $372601 (₹2,80,94115.40) in the near term.
Looking at the RSI, the 36.91 level is strictly oversold, and if it continues to stay in the 30-40 range for a while, we might see an up move. More so if there are positive global sentiments backing the same.
Current Market Stead
If you have heard of the Crypto ‘Fear & Greed’ Index, now is the time to look closely. At present, ‘Extreme Fear’ lingers in the market, which might be a great ‘dip buying opportunity. As per the ‘Fear & Greed’ Index, the global crypto space measures 16, which hints at an up move in the short or mid-term.
Still, we would advise caution for now!
Bitcoin did scare even the HODLers for a bit, hitting a new low of $42333 (₹3191908.2) a few trading sessions back. However, it has moved up quite a bit since then and is currently trading at $48129 (₹3628926.6) and in a range.
As revealed by the hourly chart, BTC’s 20-EMA is parallel to and placed under the 50-EMA line, which hints at a range-bound movement for a while. But then, if it trades above the 20-EMA line, i.e., the first resistance and inches above the 50-EMA line, we can see it moving up to $50000(₹3770000).
*EMA- Exponential Moving Average
On the downside, if it breaches the 0.236 Fib retracement level or the $48024 mark, there are multiple value buying levels for BTC to take support at, with the immediate ones being placed at $46937 (₹3539049.90) and $46058 (₹3472773.20).
Where is BTC Headed?
In the near term, Bitcoin might correct a bit but seems to have strong support at Fib 1 or the $42333 (₹3191908.20) levels. But for it to move up, you should look for higher highs and lower lows on the chart, which might be a bit difficult to predict for now with BTC being range-bound.
But then, if BTC makes three higher highs in the near future, we might expect the price to head over to $54184 (₹4085473.60) in a few trading sessions from now.
After dropping to new lows of $3500 (₹2,63,900), ETH regathered its wits and seemed to have recovered quite a bit, trading at $4043.45 (₹3,04,876.13)). On the hourly chart, ETH appears to be moving in a range, and there are quite a few aspects to account for to gauge the road ahead.
First of all, the MACD momentum indicator signifies a negative, diverging bias, with the EMA line trading below the MACD signal line. Therefore, ETH might keep moving in a range for a bit unless it breaks the trendline, marked in black.
Where is ETH Headed?
Once ETH breaks the trendline, it can easily move up to $4182 (₹315322.8) levels without experiencing resistance. However, you should look for the MACD line to cut above the signal line to be sure of the movement. On the lower side, $4033 (₹304088.20) is the immediate support and quite a strong one.
Much like any other crypto player, even SOL seems to have recovered from the lows of $172 (₹12968.8). Also, as ticked on the chart, SOL appears to have made three lower highs, which means that it might consolidate a bit more, provided market sentiments aren’t in line with buyer expectations.
As per the hourly chart, SOL is trading at $188.18 (₹14188.72), which is a tad above the immediate support level of $187.43 (₹14132.22). However, if it follows the lower highs concept and consolidates further, there is a strong support level at $185.9 (₹14016.86).
Where is SOL Headed?
As per the charts, SOL is correcting or rather consolidating for now. In the mid-term, there is strong support at $182.75 (₹13779.35), which coincides with the Fib 1 support level. But then, if SOL moves up from here, the short term targets are set at $191(₹14401.40) and $194 (₹14627.60), respectively.
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Ripple or the XRP crypto-asset also went into a corrective mode over the weekend, with the chart showing lows closing in on $0.65 (₹49.01). But then, the prices have recovered a lot since then. At present, XRP is trading at $0.77 (₹58.058).
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If you want a short term view, we would have to wait for XRP to break out of the pennant pattern. Based on the market sentiments, it might head either way, and therefore, caution is advised.
Where is XRP Headed?
The mid-term view concerning XRP continues to be positive as if it breaks the descending trendline, you can expect it to reach $0.8242 (₹62.144), levels rather soon. Also, the RSI levels at 35 hint at a demand zone, and the prices might move up from here, provided the global sentiments are in line with expectations.
To reiterate, Cardano, as a blockchain, is still one of the more popular technologies around. However, its native coin, i.e. ADA, had to take a few hits in the wake of the recent market correction. And a few trading sessions back, it dropped as low as $1.188 (₹89.57), only to recover some of its gains in the subsequent trading spurts.
As per the hourly chart, even ADA continues to trade range-bound for now. However, if you look at the movements, ADA is trading at $1.29 (₹97.266), which is lower than the immediate support of $1.315 (₹99.151),. If it keeps trading lower than the support line, ADA might head towards the $1.188(₹89.57) levels whilst finding some support at $1.29 (₹97.266), and then at $1.22 (₹91.988).
Where is ADA Headed?
The hourly ADA chart, clubbed with Bollinger bands and Fib retracement lines, do tell a lot about the mid-term movements. As per expectations, ADA needs to cross the middle Bollinger support line and reach $1.33 (₹100.282) levels to have any chance of moving up.