13 January 2022 | ZebPay Trade-Desk
After being on a downtrend for several days, the market finally has ended consecutive trading sessions in the green. While the gains haven’t necessarily been noteworthy, we would like to believe that the market has started to show some sign of respite. BTC dominance is up to 39.2%, while ETH dominance stands at 19.2%. The overall crypto market capitalization is currently at $2.1 trillion, up 2.5% over the past 24 hours.
Bitcoin touched the $40K level for the first time since the September 2021 crash and fell in dominance by 0.04%. The fall in BTC hash rate and stricter action on miners might be the reason behind this slump, which had a ripple effect on the wider market too. Bitcoin has strong support at $39,500. If the prices hold the support then we can expect a bounce or a relief rally whereas a break below $39,500 will lead to a further downfall and the prices can slide to $35k levels. ETH has broken the key support of $3,350 earlier this week and made the low of $3,000 and started consolidating. The asset has a strong support zone from $3,000 to $2,950. If it breaks the support then the prices can further slide to the next support which is at $2,650. However, given the recovery we have seen in the past 24 hours or so, we do think that the trend reversal has begun.
After being on a downtrend for several days, the market finally has ended consecutive trading sessions in the green. While the gains haven’t necessarily been noteworthy, we would like to believe that the market has started to show some sign of respite. BTC dominance is up to 40.2%, while ETH dominance stands at 19.2%. The overall crypto market capitalization is currently at $2.1 trillion, up 2.5% over the past 24 hours. The slump we saw last week as a result of the hawkish view of the Federal Reserve that was visible in the minutes of the meeting led to the outcome that an accommodative monetary policy is going to end soon, along with a sharp trimming of bond holdings. The concerns regarding inflation and early rate hikes have saddened the market mood. In addition to that, investors have become a little cautious, and seem to be shying away from riskier investments such as cryptocurrencies due to the emergence of the Omicron variant.
Altcoins have also been hit by the slump. But looking at it from a long-term perspective tells a different story. Year on year, over the course of 2021 alone, Solana (SOL) was the winner and showed a gain of about 74,000%. GALA followed suit, but by a large margin at 31,000%, whereas The Sandbox (SAND) gained around 24,000%. Polygon (MATIC), Terra (LUNA), Solana (SOL), Fantom (FTM), Kadena (KDA), Harmony (ONE), and Decentraland (MANA), all rallied in the range of 5,000 and 20,000% in 2021. This suggests that investors have started to look at altcoins as an avenue to drive funds into, creating an alternative investment avenue for themselves. This could also be the reason why we have seen major L1 altcoins outperform the more traditional crypto assets like BTC and ETH.
Bitcoin was trading in a range from $45,000 to $52,000. The asset gave a breakout on the downside of the range, early this month and started going down by forming a ‘Lower Top Lower Bottom’ pattern making the low of $39,650. The asset has made a ‘DOJI’ candle at the support of $39,600 (September low from where the rally started) and has shown signs of recovery. If the prices hold the support then we can expect the bulls to resume the up move whereas a break below $39,500 will lead to a further downfall and the prices can slide to $35k levels. To further rally BTC needs to trade and close above the resistance of $45,0000.
ETH, after breaking the crucial support of $3,600, witnessed a sharp fall and made the low of $2,930. Post this move, the asset started consolidating around $3,000.Currently, the asset is showing signs of recovery as the lower shadows around $3,000 indicate buying at these levels. However, to witness a rally, ETH needs to trade and close above the resistance of $3,600. $2,950 will act as a crucial support and a break below this can lead to the further downfall and the prices can slide to $2,650.
Bat, early this month has witnessed a sharp fall and the prices have corrected almost by 30% from $1.36 to $0.937. The asset had taken support at $0.95 multiple times in the past and this time too,it did exactly the same and has started moving up. Bat has a strong resistance zone from $1.15 to $1.2. If the breakout occurs above the resistance with good volumes then we can expect the asset to further rally and the prices can surge up to $1.5.
|USD ($)||05 Jan 22||13 Jan 22||Previous Week||Current Week|
|Cryptocurrency||1w – % Vol. Change (Global)|
|Basic Attention Token (BAT)||-22.30%|
- Liechtenstein-based crypto exchange LCX has confirmed the compromise of one of its hot wallets after temporarily suspending all deposits and withdrawals on the platform.
- Major U.S. crypto exchange Coinbase will be giving its employees one week off each quarter in 2022 to recharge after “long days and long weeks” of intense work.
- US lawmaker hints at upcoming crypto legislation as Jerome Powell says Fed will release report on digital currency soon
- The Central Bank of Iran, or CBI, and the Ministry of Trade have reached an agreement to link the CBI’s payment platform to a trade system allowing businesses to settle payments using cryptocurrencies.
*Sources of charts: https://cryptowat.ch, https://pro.zebpay.com/trade/USDT-INR
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