Weekly Bitpanda Pro market recap #58

Highlights of the week:

• Bitcoin remains in the fear zone
• Ethereum’s price action mostly balanced
• Small- and mid-cap altcoins show more action
• Major altcoins follow Bitcoin

Bitcoin remains in the fear zone

The past week was characterised by Bitcoin’s movement, or lack thereof, as BTC hovered between €36,000 and €38,000. There were some attempts to bring the price above €40,000, but the sellers had the upper hand on higher levels. The Crypto Fear & Greed Index dropped back into the “fear” zone at 26/100, suggesting that investors are still nervous. Throughout the week, the index moved from 24/100 to 27/100 and remained flat for some days, indicating that investors have bearish expectations for Bitcoin, at least from a market sentiment point of view. Historically, times of such sentiment have usually been followed by positive returns soon after. Furthermore, Bitcoin and the crypto market have, in the past, shown that crypto market sentiment can quickly change and a pessimistic and fearful environment sometimes represents a buying opportunity for investors.

The weekly chart shows a strong correlation to US equities while Bitcoin remains inside the large ascending channel pattern of a low-momentum movement. On a 7-week basis, the correlation coefficient of Bitcoin and US equities was close to 0.90, with 1 considered to be the “perfect correlation”. The 50-week moving average continues to slowly decline and is acting as the first resistance line.

Momentum indicators, such as the RSI and the MACD, are mostly flat and moving to a neutral zone, showing investor indecisiveness. At the moment, uncertainty is particularly high as the Bitcoin price is moving in the middle of a trading channel. In this situation, and despite the way the pattern is shaped, the direction of the breakout isn’t set in stone.  

Ethereum’s price action mostly balanced

Ethereum formed a base above the €2,800 level and started to show decent recovery after breaking out from the descending wedge pattern on the daily chart. Momentum indicators are positive and moving upwards, but owing to the generally-lower sentiment level among investors, Ethereum’s price action is more balanced and slower. On the intraday chart, a high formed at €2,900 and the price has been consolidating gains. ETH’s price could continue to grow higher if there is a clear move above the €3,000 resistance level.

Small- and mid-cap altcoins show more action

As Bitcoin stayed predominantly flat over the past week, some small- and mid-cap cryptos showed positive performances. One of most noticeable gainers was ApeCoin (APE), a token linked to the non-fungible token (NFT) project the Bored Ape Yacht Club (BAYC). 

APE saw a reversal from the €10-level and broke out of its wedge formation on a lower time frame. The token’s price bounced some 60% in the last seven days as buyers re-entered the market and pulled the price up from the week’s low.

The speculation behind the price increase is that Yuga Labs, the developer team behind BAYC, will soon be pushing its metaverse, named Otherside, towards a public land sale which might require payment in APE. The rumour hasn’t been confirmed but the price action that followed is not uncommon for the crypto market, as this type of speculation often ignited rapid rises in price. APE’s market cap reached €3.8 billion this week, placing APE in 33rd place among the coins with the biggest market caps.

Synthetix Network Token (SNX) also showed strength as the price bounced around 40% from forming a second higher-low in the daily chart. Momentum is bullish, with the RSI and the MACD placed well into positive territory.

ZRX, the native token of 0x exchange, saw a massive surge this week and its price grew some 50% on Wednesday.

Major altcoins followed Bitcoin

Major altcoins, including ADA, DOT, SOL, AVAX, LINK and XRP, mostly followed Bitcoin’s price action and ranged between the support and resistance levels, showing no clear bias or direction. Most altcoins performances were close to zero this past week, with no big gainers or losers. 

DOT/EUR chart:

LINK/EUR chart:

ADA/EUR chart:

A ranging market is marked by a price moving back and forth between a higher price and a lower price. It is commonly referred to as range bound, choppy, sideways or flat market. The higher price acts as a major resistance level that the price can’t seem to break through. Likewise, the lower price acts as a major support level. A ranging market ends with a clear breakout in either an upwards or downwards direction, which forms a new trend. Bitcoin is leading the whole cryptocurrency market with most altcoins following suit.

SOL/EUR chart:

AVAX/EUR chart:

XRP/EUR chart:

Have you been following Bitcoin’s price development 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.