Crypto Technical Analysis Report

29th April 2022 | ZebPay Trade-Desk

Markets seem to be consolidating, as we haven’t witnessed much action this week, with all assets seeming to be pretty range bound. This suggests that the overall sentiment is still bearish, as most assets seem to be stuck at their support levels.

Most digital assets are  15-65% off the lows of March, some assets have been sidelined & are behaving as though they’ve missed the rally. It seems justifiable to treat the current prices as a sort of no man’s land between buying and profit booking, we think this trend has legs.

The US Dollar Index (DXY) has broken the highs set in March 2020 and may  challenge the multi-year highs set in January 2017. Bitcoin (BTC) price action is generally inversely related to DXY. Therefore, unless the dollar reverses its strong uptrend, a strong recovery for Bitcoin could be difficult.Although Bitcoin has not confirmed a bottom, institutional investors appear to have started their purchases from lower levels. According to data analysis platform Coinglass, Canada’s bitcoin exchange-traded fund Purpose has added 1,132 BTC to its holdings. Behavioral analysis resource Sentiment also suggested that crowd interest in buying the dip hit a six-week high.

The cryptocurrency sector has been under pressure in 2022, but this has not reduced venture capital (VC) activity in various blockchain sectors. In the first quarter of 2022, more than $14.6 billion in venture capital investments were made in the blockchain industry, accounting for 48% of total venture capital investments in 2021. This shows the long-term growth potential of the industry.

The macroeconomic scenario hasn’t changed much since the Russia-Ukraine war began. There are concerns that inflation, as well as unemployment increasing in the major economies, has put pressure on the equity markets. The institutional flows to the crypto have observed a fall and investors have been sitting silently due to the range-bound market and uncertainty. The dominance of BTC has risen by 0.18% currently at 41.6%.  This might be a sign that BTC and other selected altcoins could be going for an oversold move but this could be just a small rally or improvement. 

Technical Outlook:


BITCOIN:

BITCOIN, last week, after resisting at its 20 Day Moving Average witnessed a 12% correction from $42,976 to $37,702 breaking the rising channel pattern. However, the asset is trying to take support at the key level of $38,750 (61% Fibonacci Retracement Level). Technically, on a weekly time frame, BTC is making Doji candles around the support indicating indecision in the trend. IF the price holds and sustains above the support level of $38,750 then we can expect an upward move whereas a break or a close below the support will lead to further downfall and can slide to $35k.

ETH:

ETH after resisting around its 200 Day Moving Average witnessed a fall and made a weekly low of $2,767. Technically, on a daily time frame, the asset has taken support at the key level of $2,775 (Neckline of the double bottom pattern) and has made a ‘Bullish Harami’ pattern. However, to witness a rally ETH has to break and trade above the key resistance zone of $3,050 to $3,150. $2,775 will act as a key support for the asset.

BAT:

BAT, last week, made a ‘Shooting Star’ candle at $0.82 and witnessed a fall. The asset corrected almost by 20% by forming a ‘Lower Top Lower Bottom’ pattern and made a low of $0.645. BAT has taken multiple support at $0.65 in the past and if it bounces from these levels then we can expect the bulls to resume the up-move.


Weekly Snapshot:

USD ($)21 Apr 2228 Apr 22 Previous WeekCurrent Week
 CloseClose% ChangeHighLowHighLow
BTC$40,527$39,774-1.86%$43,903$39,373$40,714$37,885
ETH$2,987$3,0201.10%$3,303$2,963$3,026$2,786
MATIC$1.38$1.37-0.72%$1.53$1.32$1.50$1.22
Cryptocurrency1w – % Vol. Change (Global)
BitCoin (BTC)10.75%
Ethereum (ETH)-11.01%
Polygon (MATIC)24.66%
Resistance 2$46,000$3,415$1.75$0.95
Resistance 1$42,500$3,150$1.35$0.80
USDBTCETHMATICBAT
Support 1$38,750$2,750$1.15$0.65
Support 2$35,500$2,500$1.00$0.57

Market Updates:

  • As told via a Twitter post on Tuesday, the instant-messaging app Telegram has rolled out crypto payments via Toncoin (TON).
  • Goldman Sachs has offered its first bitcoin-backed loan, a major step forward for institutional cryptocurrency adoption on Wall St.
  • The hash rate of the Bitcoin (BTC) network hit a new ATH, even when the price of the top cryptocurrency struggled to get past the $40,000 mark. The network’s hash rate hit a new record high of 258 EH/s on Thursday before settling around the 220 EH/s mark.
  • A group of lawmakers in D.C. introduced an updated bill on April 28 to regulate cryptocurrency developers, dealers, exchanges, and stablecoin providers, bringing them under the regulatory control of the United States Commodity Futures Trading Commission (CFTC).

*Sources of charts:

https://cryptowat.ch, https://pro.zebpay.com/trade/USDT-INR

Disclaimer: This report is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation, or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. The Company has prepared this report based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness, or reliability of the information, opinions, or conclusions expressed herein. This report is preliminary and subject to change; the Company undertakes no obligation to update or revise the reports to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Trading & Investments in cryptocurrencies viz. Bitcoin, Bitcoin Cash, Ethereum, etc are very speculative and are subject to market risks. The analysis by the Author is for informational purposes only and should not be treated as investment advice.

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