Market report for traders

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What’s happening in the market?

Coin drops

Trading between the range of AU$56,529 and AU$53,908 this week, bitcoin sits at AU$52,694 at time of writing, with a 4.33% downturn.  Meanwhile, Ethereum dipped 4.69%, landing at AU$3,819. In other altcoin news, Cardano slipped 7.38%, Solana took a dive of 12.22%, Terra joined the downward trend, losing 6.68%, Avalanche lived up to its moniker, dropping 10.64% while Polkadot had a downward trend of 11.76%.

BTC proliferation

The coin that started it all is working its way into a global consciousness with the Central African Republic adopting bitcoin (BTC) as legal tender, only the second country to do so after El Salvador made the commitment in 2021.  News last week that Panama has also approved a bill to regulate the use of Bitcoin and eight other cryptocurrencies for further use in paying taxes and for private transactions speaks further to crypto’s potential to sit alongside fiat currencies as a viable tender to purchase goods and pay bills.

Meanwhile, in the Mexican Senate building, the country’s 14th bitcoin ATM has been installed, with some of the country's top lawmakers lobbying for the move, citing cryptocurrency as an appropriate solution to the millions of Mexicans suffering from a lack of access to basic financial services.

NFTs going ape

In an historical crypto occurrence, Bored Ape's ‘Otherside’ Virtual Land Sale has yielded the largest NFT mint in history with 55,000 land parcels known as ‘Otherdeeds’ selling for an aggregate value of over AU$420M. The extreme scale of the mint was so large that Etherscan crashed, raising the probable need for ApeCoin to leverage its own chain.

The sale feeds into predictions that the NFT sector will move more than AU$1trillion over the next two years,with global investors interested in NFTs linked to play-to-earn and metaverse games.

Technician’s Take

In what many assumed would have been a volatile week, Bitcoin has moved relatively sideways. The 50 day MA is still very much a pseudo-resistance zone with the price rejecting off this consistently, as it has for the last few weeks. Support still seems to be around the AU$53K mark, and volume has been rather flat.

MACD is meandering quite flatly, making shallow bullish and bearish crosses, so it is not something we can really use as a signal at present. RSI is also hovering around the neutral 40-50 range.

From here, we will definitely need to see more volume pumping through in order to push the price into new territory; whether that’s up or down is anyone's guess.

Global and domestic news is still very much driving prices, both within the crypto and the global financial markets. Some altcoins have seen large spikes and dips over the past week which indicates that speculative investors have moved some of their money into those in hopes of profiting. While bitcoin is relatively flat right now, this should not be seen as a sign of weakness, especially in the current global markets.

Beginners recap:

• Bitcoin (BTC) relatively flat
• Bitcoin (BTC) rejecting at the 50 day moving average
• Relative Strength Index (RSI) neutral but has made a bearish MA cross
• Moving Average Convergence Divergence (MACD) is flat
• Watching for volume

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.