Weekly Bitpanda Pro market recap #55

Highlights of the week: 

• Crypto market sentiment is recovering

• Highest weekly close of 2022 for Bitcoin

• Number of Bitcoin addresses surpasses 40m 

• Altcoins skyrocket

Crypto market sentiment is recovering

The week started on a positive note for Bitcoin, and what seemed to be an uptrend turned into a full-on breakout. The biggest crypto by market cap created a large bullish candle in the weekly chart and reached its highest close of 2022 so far. Major altcoins followed suit and posted significant gains, as the crypto market sentiment went from extremely fearful to greedy over the past month. 

Over the past 7 days, the index went from fear at 31/100 to greed at 60/100 on Monday, and is now indicating more neutral market sentiment at 50/100. This suggests that after Bitcoin rose strongly above the resistance levels at €40,000-€42,000, traders may have started to leave the bearish feelings of the past few weeks behind. 

Highest weekly close of 2022 for Bitcoin

Bitcoin has recovered from the losses experienced in the first months of the year. In January, BTC’s price fell just beneath €30,000 and then struggled to regain ground. It now has broken out from a short-term ascending parallel channel and touched upper resistance at €44,000, the highest level since December 2021.

The momentum indicators are confirming a bullish trend: the MACD, which is created by short and long-term moving averages, is moving upwards, while the RSI is increasing and has moved above 50, showing that bulls control the price.

Number of Bitcoin addresses surpasses 40m

In addition to bullish price action, fundamental indicators are also bullish. The number of Bitcoin addresses with a non-zero balance surpassed the 40-million mark, confirming growing interest in BTC Since the beginning of the year, the number of non-zero bitcoin addresses has seen an increase of 880 thousand.

Altcoins skyrocket

The altcoin market is gaining momentum against Bitcoin, whose market dominance went from 44% to 42% over the past 10 days. Multiple altcoins have skyrocketed, with Polkadot, Cardano, Ethereum, Chainlink, Aave and Ripple posting high price hikes.

Ethereum surged and broke the resistance level at €3,000. The price is moving above important 50- and 100-day moving averages. ETH is now trading just under its 2022 high.

Cardano continued to recover and ADA’s price has flipped the overhead resistance level at €1.05 to a new support zone. The rising EMA lines and the RSI in the overbought zone suggest that the bulls are in control.

XRP continues to move upwards above the trendline support level, as bulls are buying during minor dips. Buyers pushed the price above the strong resistance level at €0.77 and are now facing the next one at around €0.85. Both the 50- and 100-day moving averages are rising and the RSI is in a bullish zone above 50.

LINK is trading inside an ascending channel. The RSI is picking up as bulls are pushing the price towards the resistance level at €17.

Polkadot’s price increased to a 2-month high at €20.5. DOT’s price is still down approximately 12% since the beginning of 2022, but momentum is favouring the bulls. The RSI is rising above 50, which shows bulls may have the power to push the price even higher.

DeFi lending protocol Aave’s governance token surged some 80% since its V3 upgrade on March 16. Aave is also one of last week’s top gainers and is trading just under its opening price from the start of the year.

Aave’s V3 upgrade included enhancements in decentralisation, security, risk management and blockchain interoperability, while also reducing the transaction fees. Aave’s total value locked has grown massively recently and it now stands at €12.5B across seven chains.

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 convenient trading experience from your computer, you can also rely on the traditional Bitpanda Pro crypto exchange.

Disclaimer

This content is for informational purposes only and is not to be taken as financial advice. We highly recommend taking the time to do the necessary research before making any investment. Be aware that past performance is no indication of future results.