Weekly Cryptocurrency Summary – Bitcoin (BTC/USD)
The BTC/USD coin failed to extend its upward rally of the previous day, turning depressed around the $43,000 mark and testing intra-day lows near 42,380.9, despite the higher CPI numbers released on Wednesday, which tends to support risk assets, like Bitcoin. Higher-than-expected inflation figures are a source of more concern, since they may hasten the Federal Reserve Board’s monetary tightening strategy.
Meanwhile, the DXY, which measures the strength of the dollar against other fiat currencies around the world, fell dramatically today, as investors reduced long holdings, betting that several rate rises in the United States are fully priced in 2022. As a result, a weaker US dollar may help limit further losses in the BTC/USD coin, as Bitcoin and the dollar have been adversely correlated, and a falling DXY appears to have supported Bitcoin’s recent rally.
Bitcoin first rose beyond the $44,000 barrier in relation to the US dollar. Although BTC was recovering its losses, it could not find support near the $42,000 level. It reached a peak, and the price is presently correcting lower. The significant gain from the swing down to $39,660, to the high of $44,420, retraced at a 23.6 percent Fib retracement level. On the hourly chart of the BTC/USD pair, there was also a breach below a significant bullish trend line, with support near $43,250. The Bitcoin price is currently hovering around $42,750, or the 100 hourly simple moving average. On the upside, $43,000 serves as an early resistance level.
However, the reason for the ongoing declines in BTC could be linked to Federal Reserve Chair Powell’s testimony. The bullish trend in the crypto market following FED Chair Powell’s comments on Tuesday was short-lived. A two-day winning streak ended on Thursday, with the crypto majors being weighed down by a 2.51% drop in the NASDAQ. On Thursday, risky assets were pushed lower due to hawkish comments by FOMC members. A handful of FOMC members discussed the need for a rate hike in March. Some of them mentioned the need for more than three hikes this year to keep inflation in check. The remarks contrasted with FED Chair Powell’s statement last week, which favoured riskier investments. As a result, the cryptocurrency market cap dropped from a peak of $2,119 billion, to a low of $1,992 billion, before recovering partially.
Weekly Cryptocurrency Summary – Ethereum (ETH/USD)
During Friday’s Asian trading, the price of Ethereum failed to extend its bullish moves of early in the day and dropped nearly below $3,300 level. Ethereum initially began a powerful upward trend above the $3,320 resistance zone. Even though ETH broke through the $3,400 resistance level and the 100 hourly simple moving average, there was no momentum. Later, Ethereum began a downward reversal versus the US dollar at $3,300. The $3,250 support level has been held by ETH, and the price is aiming for a new high above the $3,320 resistance level. The price of Ether has fallen below the $3,320 support level. The critical gain from the swing low of $2,931, to the high of $3,412, was broken below the 23.6 percent Fib retracement line. On the upside, the $3,300 level serves as immediate resistance. The $3,320 level is the first significant resistance. A clear move above $3,320 could signal the commencement of a new uptrend in the near term. The next big hurdle is around $3,400, after which the price of Ether could hit $3,480. Any further advances could push the price closer to $3,550 in the near future.
On the other hand, if Ethereum does not begin a new uptrend over $3,320, it may continue to fall. On the downside, $3,250 is a good place to look for support. Near $3,175 is where the first major support is being built. The significant rise from the $2,931 swing low to the $3,412 high is approaching the 50% Fib retracement level. If the price breaks down below $3,175 to the downside, it might head to around $3,115. If there are any additional losses, the price may drop to $3,000 or even lower. At the time, the ETH/USD coin was trading near the 3,294.70 level and consolidating in the range between 3,225.59 and 3,310.77.
Furthermore, the losses were also capped by the news suggesting that Crypto.com lists Ethereum-Based IDEX (IDEX). Crypto.com (CRO) is a cryptocurrency exchange that allows you to trade any cryptocurrency. Users can also earn, spend and borrow cryptos on the Singapore-based exchange. Crypto.com has experienced much activity in recent weeks. Late last year, the exchange purchased Super Bowl LVI airtime. This came after the announcement that Crypto.com would be sponsoring the Angel City FC women’s soccer squad in the United States. Crypto.com reported this week that the Ethereum (ETH)-based IDEX had been listed for trade.
Weekly Cryptocurrency Summary – Litecoin (LTC/USD)
The LTC/USD currency pair failed to halt its early decline and remained well-offered near the 136.000 level. LTC/USD is currently trading at $136.84, down from a high of $142.37. The currency is advancing in lockstep with the market’s 9-day and 21-day moving averages. The price of Litecoin, on the other hand, is largely driven by speculative sentiment and technical variables, while fundamental changes are largely ignored. The price of Litecoin is still trading within the 9-day and 21-day moving averages, indicating that bulls have yet to gain traction. As a result, more adverse market activity might bring the currency below the 9-day moving average, with the next local support level at $120. This level is anticipated to cap the decline and serve as a springboard for a new bullish wave. The sell-off is anticipated to gain traction, focusing on support levels of $100, $90 and $80.
Meanwhile, early resistance might be formed above the 21-day moving average at $140 on the upside. To test the $150 resistance level, traders may need to see a sustained rise above this level. Even if the daily Relative Strength Index (14) drops below the 40-level, indicating bearish indications, the additional positive movement could reach the $160, $170 and $180 resistance levels.
We are all well aware that Litecoin’s market activity has recently slowed, and the cryptocurrency’s price projection for 2022 has been generally favorable. Late this year, market analysts estimated that Litecoin would reach $266 by the end of 2022 and might even reach $300 by 2025. They pointed out that the price of Litecoin hasn’t always correlated with the price of Bitcoin. As a result, Litecoin is expected to break into the top ten most valuable digital assets in terms of market value in the next several years. According to analysts, Bitcoin has always been one of the first crypto assets to be integrated into new lines such as Venmo and PayPal, implying that consumers will continue to trade $LTC, due to its usability, continuing its bullish trend in the near future. This type of news has the potential to boost LTC prices.In the meantime, the recent bearish trend in the dollar is assisting the LTC/USD coin to reduce its losses. For instance, the dollar was down in Asia on Friday morning, set for its largest weekly drop in eight months. Long positions were lowered as investors bet that many rate hikes in the United States had already been priced into the market for 2022. The US Dollar Index, which measures the dollar’s value against a basket of other currencies, declined by 0.07 percent. It is down about 0.9 percent this week, on track for its largest weekly percentage decrease since May 2021, bringing a six-month winning streak to an end.
Weekly Cryptocurrency Summary – Ripple (XRP/USD)
The XRP/USD coin is now trading in the bearish zone near the 0.77952 level, with no signs of reversing its downward trajectory. If the support level of $0.75 fails to hold the selling pressure, the XRP/USD coin may continue to move below the 9-day and 21-day moving averages. The currency was expected to cross below the 9-day moving average and move towards the channel’s lower border at the time of writing.
The Relative Strength Index (14) was also trending lower as the signal line approaches the 40-level at the time of writing. According to the daily chart, the ripple price is continuing its bearish trend to the south and is currently trading at $0.76, with a 3.72 percent loss. However, because the 9-day moving average is still below the 21-day moving average, traders could expect the coin to fall a little more before reaching the channel’s lower boundary.
Furthermore, a break below the 21-day moving average could strengthen the bears, pushing the price to support levels of $0.65, $0.60, and $0.55, or alternatively, a break above the 21-day moving average could lead to a bullish scenario if the price continues to rise to the nearest resistance near the channel’s upper boundary at the support levels of $0.90, $0.95 and $1.00. At the time of writing, the XRP/USD coin was trading near the 0.77680 level and consolidating in the range between 0.76436 and 0.79013.On the other hand, the ongoing selling bias in the dollar is helping the XRP/USD pair to recoup some of their losses. For instance, the dollar was down in Asia on Friday morning, heading for its biggest weekly drop in eight months. On Friday, the dollar fell to its lowest weekly level in more than a year, as investors reduced long holdings and concluded that several rate hikes in the United States this year had already been completely priced in.
Selling drove the dollar through critical support against the euro and the yen, especially in a week when data showed US inflation at its highest level since the early 1980s, and traders appear content to reduce their bets until a clearer pattern emerges. The dollar index is down around 1.14 percent this week, on track for its biggest weekly percentage drop since December 2020, bringing a six-month rally to an end. The index was down about 0.20 percent at 94.654.
Weekly Cryptocurrency Summary – DOGECOIN (DOGE/USD)
The DOGE/USD currency pair was able to extend its early-day bullish bias and hit an intra-day high of around 0.211988, after Tesla, the world’s largest car manufacturer by market cap, enabled Dogecoin payments. Due to environmental concerns, Tesla, the world’s most valuable automotive company, has helped with Dogecoin payments, just months after suspending BTC settlements. As a result, the price of DOGE increased by double digits. Elon Musk stated in a tweet on Friday that the digital currency, Dogecoin, can be used to purchase Tesla items.
According to the Tesla website, the coin could be used to purchase items such as the “Cyberwhistle” and “Cyberquad for Kids.” On Thursday, whereas the broader crypto market was red, Dogecoin (DOGE) was rising. DOGE rose 7.85 percent on Thursday, closing at $0.1758. The stock market was up for the third day in a row, with the previous two advances coming from FED Chair Powell’s speech.
The current Dogecoin price is $0.195882, with a trading volume of USD 4,696,167,062 in the last 24 hours. In the previous 24 hours, Dogecoin has increased by 15.41%. Bitcoin is currently ranked first on CoinMarketCap, with a live market cap of $25,987,748,879. It has a circulating supply of 132,670,764,300 DOGE coins with no maximum supply.Elon Musk, the world’s richest man, is a big fan of Dogecoin, the original memecoin. His support, however, recently reached new heights when Tesla, one of his firms, announced that DOGE payments would be accepted for its products. According to the business, users who want to use meme coins must have a wallet, and once connected, and they can send money using an alphanumeric code or a QR code. The electric vehicle behemoth pledged to soon change its prices to include DOGE, but they are still shown in fiat currency for the time being. According to the company, “All Tesla products will explicitly be priced in Dogecoin.”
Potential DOGE clients were also informed that orders placed using the meme coin “can no longer be canceled.” All such purchases are “final sales,” meaning they cannot be returned, exchanged or canceled.According to the corporation, Dogecoin is the sole cryptocurrency that the company accepts. Remember that the company permitted Bitcoin payments last year, but terminated the program due to environmental concerns a few months later. However, DOGE surged by 30 percent, from $0.16 to a monthly high of $0.21, shortly after the announcement. At the time of writing, the meme coin had retraced slightly, and was trading just below $0.2.