Weekly Bitpanda Pro market recap #45

Highlights of the week:

• The crypto market moves bearishly but with signs of bottoming out

• Bitcoin is trading inside of a falling wedge pattern

• Cardano keeps showing strength

• Ethereum struggles to turn positive 

• IOTA has been stuck at the same level for two months

• BEST is outperforming BTC

The crypto market moves bearishly but with signs of bottoming out

This weekly chart hasn’t shown a significant change in trend. The crypto market continues to struggle and is trading at low levels for the third month in a row. The monthly chart is showing signs of prices bottoming out, while intraday charts are still volatile.

The Crypto Fear & Greed Index is at 22/100, near its historical floor, and “extreme fear” is still the dominant sentiment, a level of possible bottoming price behaviour. The Greed and Fear index has historically been a great indication of reversal signals, as it shows that many sellers have already left the market, meaning that buyers will soon take over control of the market. However, it doesn’t provide timing information and it doesn’t flawlessly predict tops or bottoms. However, it can suggest when the market is cheaper.

Bitcoin is trading inside of a falling wedge pattern

Bitcoin has shown bearish behaviour for a few weeks now and has mostly moved within the large range of €35,000 to €45,000, forming a falling wedge pattern. A falling wedge is a bullish pattern and a breakout from it would set a new bullish trend in motion, while a breakdown would mean a protraction of the current trend.

BTC is ranging and closed bullish on the weekly chart, but it’s still volatile on the daily chart, albeit with a smaller volume. The RSI and MACD momentum indicators are picking up, suggesting bulls are slowly taking over.

Cardano keeps showing strength

Cardano outperformed the top cryptocurrencies in the past seven days and ADA saw a price surge of over 20%. It’s now the fifth-largest cryptocurrency by market cap. The price broke out from its falling wedge pattern and rose above its 50-day moving average, indicating its bull run could be prolonged.

The mainnet launch of Sundaeswap, the Cardano-based decentralised exchange (DEX), just took place. This is a big announcement for Cardano as the project will now represent a direct competitor of popular blockchain-based decentralised exchanges such as Uniswap, which runs on Ethereum, and Pancakeswap, which runs on Binance Smart. DEXs are currently some of the most valuable projects in crypto.

This is the first major milestone of the year for the Cardano foundation, which also revealed several other projects will be launched this year.  

Ethereum struggles to turn positive 

Ethereum’s price dropped from the €2,950 zone after forming a local high. ETH is now trading below the 50-day simple moving average on the 4H chart, approaching the €2,700 support level. Over the last week, Ethereum has been ranging in a narrow channel between its support and resistance level, while the RSI is deeply in oversold territory.

IOTA has been stuck at the same level for two months

IOTA touched the €1.05 resistance level but fell back to under €1, following the broader market correction. It has been trading in a range for the past two months, as bulls and bears fight over control. The price bounced from the €0.9 horizontal area several times, creating long wicks each time. However, as long as the price trades above this level, there’s a chance the structure might still be bullish.

BEST is outperforming BTC

BTC’s price is still under bearish pressure and shows a lack of liquidity, while BEST is moving in a positive direction. The BEST/BTC pair shows the Bitpanda Ecosystem Token outperforming Bitcoin, with BEST moving up to the first resistance level of 0.00002540 BTC.

BEST broke a long trendline and touched its support level at €0.81. The token has often reached this support zone in the past, which suggests buyers are strongly holding positions on this level.

Have you been following the price developments of Bitcoin or the smaller caps’ formations and want to act on the market moves on the go? Make sure you trade using our Bitpanda Pro iOS and Android apps. For a comfortable trading experience from your computer, you can also rely on the traditional Bitpanda Pro crypto exchange on desktop.