- Bitcoin price is aiming to retest the $60,000 psychological level
- Number of Ethereum unique addresses broke four million
- Cardano network activity is increasing
Cryptocurrencies took a hit on Friday as the detection of a new coronavirus variant in South Africa triggered a broad risk-off sentiment across financial markets. As a result Bitcoin price plunged 8% while Ether, the second biggest cryptocurrency by market capitalization, dropped briefly below $4,000. However today moods improved as some health officials said that Omicron coronavirus variant seems to cause only mild symptoms of infection. On Monday the Bitcoin price rose 4%. Ethereum and Ripple are promptly following major crypto and are also on the path to recovery.
Bitcoin:
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app- According to the recent orderbook data from analytics resource Material Scientist, a lot of buying orders are placed around $50,00 level, which provides strong support.
BTC/USD orderbook heatmap. Source: Material Scientist/ Twitter
- Bitcoin Fear and Greed Index, which measures market emotions, entered “extreme fear” territory on Saturday, the lowest level since the end of September.
The Crypto Fear & Greed Index fell sharply last week. Source: alternative.me
- Despite “Extreme Fear” on the “Fear and Greed Index,” buyers stocked up Bitcoin at $53,000. Bitcoin exchange balances continued to drop in recent months. More Bitcoins were removed from the exchanges during the recent sell-off, and this was in sharp contrast to the 2017 cycle, where BTC started flooding exchanges once the price rally started.
Bitcoin net position change is an indicator that measures the total inflow/ outflow of BTC across exchanges as a moving average for the past two weeks. A net outflow is considered a bullish sign for Bitcoin price. Source: Glassnode
- According to the popular Twitter analyst TechDevThe next few weeks will be “very telling” for Bitcoin as it makes or breaks some significant correlation with gold. The most popular cryptocurrency continued to replicate precious metal price movements from the 1970s.
Similarities between Bitcoin in 2020-21 and Gold fifty years ago have endured despite some volatility anomalies in Bitcoin price action. If current trend prevails, then Bitcoin price may rise sharply in the near future. Source: TechDev/ Twitter
Bitcoin - recent sell-off was stopped at the major support area around $52,000. The green zone on the chart below is marked with previous price reactions and the 38.2% Fibonacci retracement of the upward move, started in June. In addition, the price returned above the lower limit of 1:1 structure (purple rectangle). According to the Overbalance methodology, it signals that the main sentiment remains bullish. Source: xStation5
Ethereum:
- Data from Dune Analytics showed that unique addresses on Ethereum – the total decentralized finance users on the blockchain – broke four million this past week (Note that one user may have multiple addresses).
- The introduction of the EIP 3554 protocol has been postponed from December 1, 2021 to the summer of 2022, but developers, including Vitalik Buterin, have already developed a short-term EIP 4488 solution that aims to solve the gas fee problem in the Ethereum network in the short term.
- Meanwhile, EIP 3554 is to make ETH virtually impossible to extract, the difficulty is to increase by 90% thanks to the so-called difficulty bomb. The miners are likely to go staking. This may cause a supply shock following the implementation of this protocol.
ETHEREUM price fell sharply last week, however sellers failed to stay below psychological $4000 level which coincides with lower limit of the 1:1 structure and 36.2% Fibonacci retracement of the last upward wave. Currently price is testing local resistance at $4366,00 which is strengthened by 23.6% Fibonacci retracement. Should break higher occur, upward move may accelerate towards all-time high at $4870.00. Source: xStation5
Cardano:
- Cardano price action has been very limited in recent months as the token continues to slide, creating lower lows.
- However, the protocol’s network activity has increased as a flurry of Dapps joins the blockchain.
Cardano’s network activity has continued to increase as the blockchain has allowed users to create decentralized applications (Dapps) on its network. Source: intotheblock
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
