Cointree Crypto Market Update - March 9th 2022
Market report for traders
What’s happening in the market?
Bitcoin gives back last week's gains
The majority of other major coins also saw similar corrections; BNB -6%, Polkadot -9%, Polygon -11%, Avalanche -12%, Near -12%, Cardano -15%, and Solana -18%. Impressively, while Terra is down -7%, its Total Value locked (TVL) managed to hit an all-time high during the week.
“We're witnessing the birth of a new world monetary order”
According to a former US Federal Reserve official and analyst from Credit Suisse, the global financial system is moving away from the US dollar and towards other currencies, which could lead to higher inflation.
Markets seem to share this sentiment, with crypto-fund-inflows tripling over the past week to a three-month high and gold spiking to AU$2,833 an ounce. Both asset classes are considered inflation hedges by some.
NFT sales drop 29% and Ethereum gas prices follow
Notably, NFT sales have dipped around 29% this week. The subsequent decrease in demand for block space may be behind the drop in Ethereum gas fees, which are the lowest they’ve been in seven months, with a median transaction fee of only AU$5.13. Fees on layer 2 protocols have been even lower, with most well under AU$1—low enough to help scale blockchains across the globe.
Bitcoin continues to range
Bitcoin (BTC) is currently sitting at AU$53k, after making a textbook rejection at the AU$62,500 resistance line. It has started heading back towards the AU$51,200 support line, giving up the 16% gain from last week.
So far it is also looking like there may be a bounce off support, though given that the bar hasn’t closed, I would be cautious before making any assumptions that this is a definitive sign of a bounce.
Moving Average Convergence Divergence (MACD) has made a bearish cross and Relative Strength Index (RSI) is still slightly oversold. It should be noted, these are lagging indicators and only illustrate the current trend.
From here, I'll continue to watch for volume and any upwards movements to confirm an upwards trend in the price given that BTC seems to be ranging again. This is a perfect opportunity to either dollar-cost average into a position or make short-term trades.
As always, proper risk management and money management are paramount to protect your positions and help you remain a profitable trader.
- Bitcoin (BTC) is down 16% for the week.
- Relative Strength Index (RSI) is slightly oversold.
- Moving Average Convergence Divergence (MACD) made a bearish cross.
- Watching for a further push up or a retrace to find support.\
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.