Crypto Market Analytics January 7th | Dex-Trade
Crypto Market Analytics – January 7th, 2022
The Crypto Market is Getting Poorer by $300 Billion While BTC and Altcoins Are on The Way to Optimal Entry Points: Results of The First Trading Week of 2022
It seems that the warming in the cryptocurrency market at the end of December last year turned out to be nothing more than a flash of optimism caused by the ambiguous forecasts of such influencers and analysts as Musk, Dorsey and Kruger. In fact, we record a drop in the total market capitalization by $300 billion in the first week of 2022 and it’s not yet clear when this outflow will stop. Hodlers and traders are liquidating their assets en masse, with ETH outperforming BTC in this competition, losing $42 million in the first couple of hours of Friday, compared to the $40 million lost by Bitcoin. At the moment, crypto gold has hovered near the $42,500 mark, while digital silver has floated below $3,300. However, experts say that the bear market will soon come to its climax, which means that soon we’ll see better positions to open buy orders.
BTC Must Close the Trading Week Above $42,400, Otherwise The Price Will Head Towards The $30,000 Mark
On Friday night, the monitoring resources Cointelegraph Markets Pro and TradingView recorded the lowest Bitcoin price since September last year, the fall of which stopped at $40,938. Then the flagship grew slightly, but the scale of liquidations would clearly not allow it to break above the $43,000 level. According to trader and analyst Crypto Ed, over the next few days, Bitcoin may collapse on the wick of liquidations to September lows, namely, to positions in the region of $30,000.
It’s important now to consider two macroeconomic factors that, apparently, will continue to stimulate the fall in BTC:
- Increase in interest rates by the US Federal Reserve System;
- The drop in the capacity of the Bitcoin network due to massive power outages in Kazakhstan.
Even separately, these two events are potentially capable of reversing the course of the main crypto. But they happened almost simultaneously and, apparently, their influence will be felt for a long time not only in the digital asset market. However, many analysts recommend waiting for the next trading week and, depending on market sentiment, opening orders to buy Bitcoin, as this may be the optimal position to enter the market.
Altcoin Market in Deep “Depression”: How Alternative Coins are Responding to Global Investment Outflow
Not for the first or the last time, we have seen ETH dutifully repeat all the price “wanderings” of crypto gold. The coin is currently trading at $3,231, the lowest position since early October 2021, according to CoinMarcetCap. In 7 days, it lost 15% of its price, and now no one will be surprised by its fall below $3000.
But the crypto winter hasn't only touched the market flagships. Other altcoins like Cardano, Solana, and XRP are also colored red. Even Binance Coin (BNB) is in the bearish zone, which does not appear to be trying to turn towards a recovery, and it’s not typical for this alt.
Not the best times for Dogecoin
And the saddest thing is to watch the fall of meme cryptos market, dear to our hearts. At the time of writing, DOGE is trading in the red zone at $0.1564 and has already formed a descending triangle on the daily chart. As “extreme fear” (15/100 — a record since May 2021) takes over the cryptocurrency market, most investors of the main meme coin fear the market will continue to fall.
And it seems that the fears are indeed justified, since we see on the chart that the loss of capitalization can stimulate a new movement towards the target of the prevailing chart pattern at the level of $0.1241, which is 19.27% below the current price.
Should we trust Shiba Inu?
The "DOGE-killer," SHIB, has already plummeted below the psychological level of $0.000030 for the first time since December 20 last year, reaching a bottom at around $0.00002812. After that, there was a slight recovery and now it is trading at $0.00002953. This is the last position to defend an asset, the loss of which will cause massive sell-offs that can bring SHIB down for a very long time.
However, upbeat analysts emphasize that a short-term double bottom pattern with bounces can be seen on the 12-hour Shiba Inu chart. The potential of the current position is that a rebound from this level hints at a recovery in the asset around $0.000040. And this is perhaps the most optimistic news for the entire first trading week of 2022.
