Market update
Cointree Crypto Market Update - June 8th 2022
Market report for traders
BTC and alt coins
Over the last seven days, bitcoin has been swinging, sitting at AU$42,332 at the time of writing, an increase of 2.08% over the last seven days. Meanwhile, Ethereum is up 0.02% week on week, landing at AU$2,452. In other altcoin movements, Cardano continued to climb, up 9.85%, Solana is down 4.30%, while Avalanche increased 1.03% and Polkadot dropped 6.00%.
Institutions buy the dip, well the bitcoin dip…
Although no clear breakout has been seen for bitcoin over the past week, it seems institutional investors have been continuing to scoop up the king of crypto. According to CoinShares' latest fund flows report, bitcoin investment products witnessed cumulative inflows of US$126 million in the week ending Saturday. Considering Ethereum inflows continued to decline and crypto prices have been swinging, it is a positive sign that institutional investors are buying the dip.
Cardano outpaces rival Solana in the battle for smart contract dominancy
Smart contract platform, Cardano, has surged ahead of its upcoming hard fork, Vasil. The upgrade is expected to allow more data to fit into each smart contract transaction, improving the speed of settlement, decreasing transaction fees and expanding the utility of Cardano's smart contracts. The much-anticipated hard fork event, named after the late Bulgarian mathematician Vasil Dabov, will take place on June 29.This update is just one of two expected over the next two months, with another in July, known as the Ouroboros Genesis, which will allow investors to move the USDC (USDC-USD) stablecoin from the Ethereum blockchain to the Cardano blockchain.
Technician’s Take
BTC swings in range
Bitcoin has found a relative bottom at ~ AU$39,500 and has been making 5-8% swings on the daily chart on some days, making for perfect opportunities for the swing traders and scalpers. With volume still being way down from some of the bigger swings it definitely looks like it’s not taking a lot to move the market right now. This sort of environment is definitely ripe with opportunity and also poses plenty of risk so is definitely not for the faint hearted or those without proper risk management strategies in place.
MACD continues on a bullish cross but has shown a sharper divergence given the last couple of days. RSI is almost smack bang in neutral territory at 50 yet again, however the RSI MA is in a definitive upwards trend..
While the current resistance of ~AU$45k is showing it is just a little too hard to break it is good to see the $39,500 level has been untested this week, with ~AU$41,100 being a stronger support level right now.
With the current chart displaying a very nice hammer formation we could see another push north from here and hopefully a retest of resistance.
Global markets and the present geo-political situation definitely are still weighing on all markets, crypto included and will probably be a major influence for a while yet.
Beginners recap:
- Bitcoin (BTC) swinging in its current zone with some swings of 5-8% a day being seen
- Relative Strength Index (RSI) is neutral
- Moving Average Convergence Divergence (MACD) bullish and diverging a little more aggressively with the recent push
- Watching for confirmation for a continuation or reversal
- Remember to plan your trades and trade your plan
Disclaimer: The 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.
