Market update
Cointree Crypto Market Update - April 6th 2022
Market report for traders
What’s happening in the market?
BTC stays on top while European EFTs enjoy new investors
Following a week of large inflows to digital asset investment products, to the tune of AU$255M, BTC-backed funds saw, by far, the largest inflows last week with AU$190M being invested. Meanwhile, Ethereum (ETH) saw inflows of AU$30M, and Solana (SOL) placed with inflows of AU$10M for the week.
Short-bitcoin funds—investment products that rise in value as bitcoin’s price falls— saw inflows of AU$1.3M last week. The latest inflows mean that a total of AU$11.9M is now invested in short-bitcoin funds.
Interestingly, a regional divide still exists among investors in crypto-backed funds, and though in general Europe is lagging behind the global average for cryptocurrency adoption, a whopping 99% of inflows came from the continent last week. In fact, three more exchange traded funds (ETFs) have been approved on the French and Dutch Euronext exchanges.
Burgeoning crypto mining peaks at a virtual summit
In mining news, German Bitcoin mining operation Northern Data published its financial statements noting the company’s mining fleet had grown by approximately 21,000 machines at the end of March 2022. The newly added machines increased the company’s hashrate from 2 exahash per second in February to 3.95 EH/s by the end of March.
With much talk about the sustainability of mining operations, Marathon Digital has pledged to clean its carbon footprint by moving its rigs and going 100% carbon neutral by the end of 2022.
Back at home, Sydney-based, Iris Energy, a leading sustainable Bitcoin miner who is building an institutional-grade infrastructure platform with 15 EH/s of secured miners, (10 EH/s expected to be operational by early 2023) announced this week that it will be presenting virtually at the upcoming Cowen Bitcoin Mining Summit. The Summit, a virtual event focused on cryptocurrencies & digital assets, aims to educate investors and explore key trends like go-to-market self-mining strategies and sustainability focused on energy efficient bitcoin mining. The event takes place on April 12-13, 2022.
Technician’s Take
While Bitcoin (BTC) is down around 4% for the week, it has held the AU$62k resistance line quite tightly, despite a drop in volume. BTC still seems to be looking for a support level, however the AUD $59-$60k range appears to be where there is some support for the time being.
MACD is about to make a bearish cross along with RSI slowly retreating within the oversold range.
From here any major retreat could see BTC head back towards its recent comfort zone around the 50MA, and any push up should see it test the AU$74,400 resistance with any luck.
While Bitcoin made an initial correction of ~4% on the 31st of March, it is quite good to see that while the price has pushed lower in intraday trading, the buyers were never far away and pushed the price back up.
Action around the end of the month is always interesting to watch as some of it can be attributed to traders closing out of a carried long positions that have been hedged against a futures contract expiring at the end of the month. These contracts close on the actual price of the underlying asset when the contract expires.
I’ll be watching volume and price action closely here and looking for trade entries.
Beginners recap:
- Bitcoin (BTC) down 4% for the week
- Relative Strength Index (RSI) still oversold, but slowly retreating
- Moving Average Convergence Divergence (MACD) looking to be making a bearish cross
- Watching for a further push up or 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.
