Cointree Crypto Market Update - May 11th 2022
Market report for traders
What’s happening in the market?
Trading between the range of AU$51,975 and AU$45,913 this week, bitcoin sits at AU$44,412 at time of writing, with a 11.66% downturn. Meanwhile, Ethereum dipped 11.12%, landing at AU$3,324. In other altcoin news, Cardano slipped 17.60%, Solana took a dive of 18.43%, Terra joined the downward trend, losing 82.28%, Avalanche lived up to its name, sliding 22.16% while Polkadot had a downward trend of 19.40%
Web3 developers rejoice. A new Google Cloud team is building services specifically for you. The search goliath is hoping to make Google Cloud Platform the primary destination for those who want to run Web3 apps. Although the team is not trying to directly be part of that cryptocurrency wave, Google Cloud vice president Amit Zavery says they will be providing technologies for companies to use and take advantage of the distributed nature of Web3 in their current businesses and enterprises.
In further Web3 goss, The Ethereum Name Service (ENS) is another project looking to facilitate Web3 adoption by making it easier for DApp users to interact with the Ethereum network. There’s no denying the flux of industries shifting from Web2 to Web3, and with this move, awareness of blockchain technology is also growing. As a result, ENS price gained 90%+ after the protocol surpassed 1 million registered domain names in April, surging 91.75% to a daily high of AU$38.93 last week.
The NFT market recorded AU$8.8B in monthly trading volume in April 2022, the third time in history, and a growth of 23% from March. Popular NFT collection Moonbirds and a rise in demand for Solana (SOL)-based NFTs were the primary drivers of that growth. This month saw Moonbirds ranking as the eleventh most traded NFT collection ever, while trading volume of Solana NFTs rose by 91% month-on-month (MoM).
In London, Christie’s Auction house’s younger neighbor Phillips is entering the NFT sphere with the sale of an artwork called REPLICATOR. At face value, the work is just an animated video clip of a photocopier, but delve deeper and you’ll find a feature akin to a Banksy artwork in reverse. The photocopier NFT will produce additional NFTs over time, all of which will be owned by the buyer of the initial work. Those NFTs will in turn produce more NFTs, but some NFTs can “jam,” stopping further replication and producing a unique “jam artwork.” After seven generations, the works will stop reproducing altogether, leaving the owner with the option to split up the reproductions for resale.
BTC down over 20% for the week
There was blood on the trading room floor this week, and crypto most definitely did not elude the large sell-offs around the world. With an almost doubling of volume from the averages seen over recent times, BTC price is down to levels not seen since July last year.
In a glimmer of hope, today's action has been intriguing, up a relatively meager 2% at the time of writing. However, the price was up by as much as 9% for the day. This indicates that buyers are stepping up, but selling pressure is still high.
At these levels we should see some support if we take July into consideration. However, the economic climates were somewhat different, so only time will tell whether this level will hold.
MACD is well and truly bullish, with RSI very much oversold.
Whether we will see a continuation of the down trend or a sign of a reversal will be anyone's guess given the current geopolitical situation and the general market sentiments across the globe.
While we might see some great opportunities for intraday bounce trades, it’s definitely something that should be undertaken with caution, with tight stops and proper money/risk management.
- Bitcoin (BTC) down over 20% for the week
- Relative Strength Index (RSI) is bearish
- Moving Average Convergence Divergence (MACD) is bearish
- Watching for confirmation for a continuation or reversal
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.