Cointree Crypto Market Update - February 9th 2022
Market report for traders
What’s happening in the market?
Bitcoin breaks the 50 day Moving Average!
Bitcoin is up 16% for the week! It has broken above the 50 day Moving Average and now has the 200 day Moving Average in sight. It was also a strong week for the smart contract platforms, with Ethereum up 15%, Terra up 19%, and Avalanche up 26%. However, it was Ripple that outperformed the market, rising 40%.
Is it too late to buy bitcoin? Wells Fargo and KPMG don’t think so…
We’re still early! The banking giant Wells Fargo released a report that compares bitcoin’s growth to the early internet. While they recognise that some investors think that it may be too late to join the party, their analysis indicated that bitcoin is nearing a “hyper-adoption phase” similar to the internet in the mid-to-late 1990s. Adding fuel to the fire, they anticipate that bitcoin will be adopted even faster than the internet.KPMG Canada appears to agree. The accounting firm has added both bitcoin and Ethereum to its balance sheet, following in the footsteps of other public companies like MicroStrategy, Square, and Tesla. Along with their financial investment, they’re expanding their capabilities across DeFi, NFTs and the metaverse.
Why is Ripple making waves?
Ripple (XRP) has risen a massive 40% for the week. The price surged amid positive sentiment around the court case in which the SEC alleges Ripple sold XRP as an unregistered security. Some industry attorneys said the proceedings suggested the case could be headed for a verdict soon.
Bitcoin continues rally
Following lots of fear and uncertainty over the last few months, bitcoin (BTC) has made a healthy 16% gain for the week, breaking the 50 day Moving Average after a significant push on the 4th of February. It now has the 200 day Moving Average in its sights.
Bitcoin still seems to be moving in lockstep with other markets and, as with other markets, global news is most definitely affecting the price. Monetary policy continues to be one of the big drivers.
After a clean bounce from the Relative Strength Index (RSI) oversold zone two weeks ago, BTC made a nice steady increase. It has gained momentum and started climbing much more aggressively this week.
On the 3rd of February, BTC formed a perfect Dragonfly Doji and made an absolute textbook push with an almost 13% gain for the day. If you draw your attention to the volume bars in the chart above, you can see that the move had only slightly more volume than the previous day, indicating that the sellers have all but gone and the buyers have stepped in.
Now, RSI is starting to move towards overbought, so we may see some pullback or sideway movement when we hit that zone, although that may well be short-lived if the buyers keep stepping up. Moving Average Convergence Divergence (MACD) is currently very bullish.
- Bitcoin (BTC) making great gains and climbing faster than the previous week.
- Relative Strength Index (RSI) is nearing overbought.
- Moving Average Convergence Divergence (MACD) is very bullish.
- Sellers seem to have dropped off and buyers are back in control.
Disclaimer: Information provided is for educational purposes and does not constitute financial product advice. You should obtain independent advice from an Australian financial services licensee before making any financial decisions.\ As cryptocurrencies remain volatile, all prices and percentages may have changed since the time of writing.