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Crypto Predictive Analysis – Week of February 6, 2022

by | Feb 7, 2022 | Uncategorized | 0 comments

Following a week of consolidation, bitcoin and ethereum prices both rallied past key resistance levels to start the weekend. Bitcoin moved beyond $40,000, with ethereum climbing over the $3,000 mark. According to Coinmarketcap, the total market capitalization of all cryptocurrencies is $1.9 trillion, representing a 7.76% gain over last week. 

Bitcoin Analysis 

At present, the bitcoin dominance is 39.73% and the total market cap of the crypto market is $1.989 Trillion. Bitcoin (BTC) is trading around the resistance level at $41,900 and a support level of $38,500. Bitcoin has two support zones the first one is $38,500 and the second is $36,750, however, there is resistance at $41,900 and $42,700 if this resistance is broken there would be a gradual increase in price which would lead to another bitcoin rally.

Key technical points

  • Bitcoin Fear and Greed Index rests at 37 out of 100
  • The daily RSI slope spikes above the neutral zone(50)
  • The intraday trading volume in the BTC is $16.3 Billion, indicating a 46 % fall.

The recent price jump has flipped the dynamic resistance of 20-day EMA into possible support. However, the buyers are likely to face the trend defining 200 EMA near the $45000 mark, which would provide better confirmation for bullish recovery. RSI(55) slope showed a sudden surge above the 14-SMA and the equilibrium(50), suggesting the bulls are back in the driver’s seat.

Ethereum Analysis 

ETH broke above the key resistance at $3,000 on Saturday. If ETH can turn this level into support (retest and confirm), this impressive rally could continue much further. In addition, there is also significant support at $2,700 should ETH see a deeper pullback.

The ETH bears were using the descending trendline to sell on rallies and drive the price lower. The coin chart shows higher price rejection candles at this resistance trendline, indicating the bears are defending this line. If bears continue to exert selling pressure, the coin price would plunge below $3000. The ETH chart indicated a strong breakout candle of 10% intraday gain breached through the overhead resistance. However, another significant resistance, i.e., descending trendline stand at the forefront will retest the buying before any further growth.

The buyers have managed to flip the dynamic resistance of 20-day DMA into potential support. However, the buyers will most likely challenge the 200 DMA near the $3400 mark for a more promising bullish recovery.

Key technical points: 

  • The ETH price acquired the 20-day DMA 
  • The intraday trading volume in ETH/USD is $10.2 Billion, indicating a 37.2% fall.

ETH has new support which is at $2,700 and $2,500, if ETH could maintain the support level, then we could see a bullish sentiment.

Altcoin Analysis 

ADA

Cardano (ADA) also rose by almost 10%. Cardano (ADA) is trading similarly to XRP as it is also located near its resistance level at $1.188. However, the buying volume is going down, which means that bulls may have faced some obstacles on the way. In this case, the more likely scenario is ongoing sideways trading around $1.11.

BNB

Binance Coin (BNB) is the biggest gainer from the list today as its rate has rocketed by 12% since the weekend. BNB broke the resistance at $405, having confirmed the bulls’ power. If the trading volume increases, the rise may continue to the vital mark around $500. Such a scenario is relevant until the end of the upcoming week. An increase in trading volume will help the BNB bullish momentum and its fib extension.

XRP

XRP is trying to show similar performance as BTC, which went up by almost 11%. Despite the growth, XRP has not left the channel, located between the support at $0.5461 and the resistance at $0.6959. At the moment, the rate is coming close to the $0.68 mark against increased trading volume. In case of a breakout, there are chances to see the test of the liquidity zone around $0.80 next week. XRP is trading at $0.6710 at press time.

Shiba Inu:

18.8 Million SHIB Burned in Past 24 Hours but Lots More to Be Gone in 10 Days: Etherscan Data Stubborn Twitter account has shared data from etherscan, saying that over the past twenty-four hours, close to 19 million Shiba Inu tokens have been burned, i.e. taken permanently out of circulation. It took various groups inside the SHIB community ten transactions to burn this amount of crypto. By now, 41.0302 per cent (totalling 410.3 trillion tokens) of the overall initial SHIB of one quadrillion supply has been burned.

Summary

During the weekend bitcoin shot up by 10% which made 72,700 traders liquidated from the market, meaning a total liquidation of $270.8 million across all cryptocurrencies as per real-time liquidations of all exchanges and currencies on Coinglass. In particular, the largest amount of liquidations occurred with BTC for $106.36 million, while Ethereum was second with $69.98 million total liquidations. Every trader and investors are curious to see bitcoin soaring this week. As many crypto influencers tagged February as “the month of green,” if bitcoin breaks $46,000 which is the strong resistance level then the bull market continues. However, if this is a fake breakout that was planned to trap people there would be a lot of sell pressure which would push bitcoin to $34,000. If this happens there would be months of crypto winter.


A former professional rugby player, Adam S. Tracy brings over twenty years’ experience as an attorney, consultant and dealmaker with a particular focus on cryptocurrency, digital products, payments and immersive corporate structures. As an accomplished executive and advisor to high risk merchants and stakeholders, Adam has proven himself as a results oriented, decisive leader with proven success advising early market entrants, technology adapters, as well as established participants across a wide range of verticals. Adam Tracy’s attack-first personality allows him to excel in dynamic, demanding environments including complex corporate negotiations, distressed environments and regulatory investigations.

In addition, Adam S. Tracy also has a successful track record co-founding high risk industry ventures, building & leading cross-functional teams, and spearheading diverse corporate transactions. A serial entrepreneur, Adam has successfully started and created exits across a wide swath of markets, including various mobile SaaS ventures, nutraceuticals, peer-to-peer payment systems, and several telemarketing-based ventures. Moreover, as a recognized expert in the payments field, Adam Tracy has been a blockchain and digital currency evangelist and influencer since the early days of Bitcoin.

Utilizing his proprietary “Pre-Event Driven™” strategy for decision making, Adam S. Tracy further leverages his over twenty years’ experience to create cost-effective, value-add solutions for each client. A data-driven acolyte, Adam continually refines his strategies based on field studies and data collection. Moreover, Adam Tracy further augments his range of solutions by actively networking with regulators, liquidity providers, legal and compliance experts, deal-flow brokers, investors and management of leading high risk industry ventures.

Adam S. Tracy earned his Bachelor of Science in Computer Applications and Bachelor of Science in Finance from the University of Notre Dame. He subsequently earned his Masters in Business Administration from the DePaul Kellstadt Graduate School of Business, while concurrently earning his Juris Doctorate from the DePaul College of Law. Adam lives outside Chicago with his with his wife, son, four dogs, and two cats.

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