Crypto Investing
18 Apr 2022

Week 16 Crypto Market Update: BTC, ETH, XRP, SHIB, and DOGE

Ananda Banerjee

The entire crypto space was relatively muted throughout the past extended weekend. Leading the dryish holiday spell were international discussions related to bond yields (interest rate on bonds which increase with inflation) that were making the equity players skeptical. Due to its correlation with equities, the crypto market couldn’t shake off the retreat and dipped by almost 6% over the weekend.

Elsewhere, Wikipedia was seen mulling over discontinuing crypto donations, Elon Musk revealed his Twitter shakedown plans, and Beanstalk, an Ethereum-backed stablecoin protocol, was hacked. All adding to the downward trend.

Broader Market Highlights

  • Cardano (ADA) might be showing bullishness on the daily charts after a relatively tiresome couple of months, as exhibited by its buyer strength which is above $0.92 (₹73.58).
  • Close to 30,000 bitcoins left a leading global exchange over the last week—lowering the inflow volume and weaker hands.
  • The Global Crypto Ranking released by Coincub placed Germany atop the list of crypto-friendly nations; India was positioned at number 19, which is an improvement on the past ranking of 25.

On-Chain Metrics

Outlook: Positive

BTC flowing into the exchanges means strong selling pressure. Despite the crypto space coming out of the highs over the past few days, Bitcoin (BTC) volume moving into the exchanges is at its lowest monthly level of 17.11K.

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

The statistic depicted above means that people are holding on to their BTCs tightly.

And that’s not the only optimistic on-chain metric.

The BTC-holding pattern (percentage) has changed over the past two weeks, with the number going as high as 37%. This figure means that new whales, institutional investors, and standard wallets might be purchasing BTCs at every dip and then holding on to them—without pushing them into the exchanges for executing trades.

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

Inferences

  • There is a higher percentage of HODLers than usual.
  • An increase in the percentage of new Bitcoin purchases is seen.
  • Some midterm selling was seen over the weekend, followed by value purchases.

Fear-and-Greed Index

Outlook: Short-Term Skepticism

As of yesterday, the Fear-and-Greed index was holding steady at 28. Today, at the time of writing, it has dropped to 24—signaling short-term market skepticism. Investors and traders are watching from the sidelines, especially with the global equity market continuing to shed gains. 

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

Inferences

  • An 8-point drop in the Fear-and-Greed index levels has possibly been triggered by the increased correlation between the crypto space and the equity market.
  • The market is still consolidating, with the bears and the bulls in a frantic tussle to drive the next leg of the trend.
  • The market is still volatile, and a quintessential DYOR strategy would make sense.

Current Conversion Standard: $1 = (₹79.98)

Key Coins

Bitcoin

Outlook: Bearish

It wasn’t the happiest Easter for Bitcoin (BTC), as it dipped by over 6.40% in the past seven days. According to the 4-hour chart, BTC is currently trading at $38,946 (₹31,14,901.08), with $38,400 (₹30,71,232) becoming a strong support zone. If the support level is breached, you might see BTC heading lower in the short term.

Source: Trading View

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

On the upside, BTC might find it hard to break the $40,308 (₹32,23,833.84) levels. If BTC manages to close one 4-hour candle above the resistance level, you might see it pushing for the $41,000 (₹32,79,180) level. But the Moving Average Convergence/Divergence (MACD) level doesn’t signify momentum.

However, the chart does suggest that BTC has been making lower highs, whereas the MACD follows a higher-high pattern. This form of divergence can favor BTC in the short term, with a trend reversal on the cards.

Ethereum

Outlook: Volatile

Ethereum didn’t start Week 15 on a great note, with its much-anticipated Merge being pushed back. Consequently, Ether (ETH) started shedding gains, dipping by over 7%, week-on-week. ETH is now trading at $2,905 (₹2,32,341.90), with the RSI* indicator trading in the oversold zone of 40. 

* Relative Strength Index

Source: Trading View

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

Coming to the key levels, ETH might have strong support at $2,830 (₹2,26.343.40), below which the price might crack further. As per the daily chart, it seems that ETH has been moving in a consolidating channel for quite some time now—with $3,088 (₹2,46,978.24) being the first resistance level that ETH needs to be breached to break out of it.

Ripple

Outlook: Bearish

Ripple (XRP) traded flat over the weekend when most altcoins were deep in the red. Currently trading at $0.733 (₹58.63), XRP doesn’t look all that strong on the 4-hour chart, signaling a lower trendline channel breakout.

Source: Trading View

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

If XRP drops lower, it might have some strong support at $0.69 (₹55.18). In case XRP moves back into the channel (in case of a false breakout), the strong resistance level of $0.789 (₹63.10) would then have to be breached for the channel to head in a positive direction.

The RSI is holding on to the 40 levels and doesn’t inspire a lot of buyer confidence at the XRP counter.

Shiba Inu

Outlook: Neutral

The Shiba Inu (SHIB) counter was one of the more active ones over the extended weekend. First of all, the crypto asset was finally listed on Robinhood. And secondly, there was a lot of whale buying detected on-chain, with accumulating volumes increasing by almost 450% compared to the previous month.