Market Analysis – 3rd March 2022 | Bitcoin - Cryptocurrency
Market Analysis – 3rd March 2022 | Bitcoin - Cryptocurrency
As the invasion of Ukraine continues to rage on, the nation has received tremendous support and donations from all over the world. Nations are donating weapons, ammunition, and even cryptocurrencies to aid in their defence. According to an article on CoinTelegraph, Ukraine has received nearly $40 million in cryptocurrency donations. The nation has initially announced an airdrop, though it was subsequently cancelled with no explanation given. Instead, the Vice Prime Minister of Ukraine has informed the crypto community that the nation now has plans to raise funds through the sale of NFTs.
Japanese wealth management company Nomura Holdings has announced that it is expanding into the NFT sector with the launch of a new unit. It will restructure its Future Innovation Company into a brand-new Digital Company, and the objective of the new company would be to accelerate their uptake of digital services. NFTs are becoming increasingly popular in Japan, and last week, major Japanese e-commerce firm Rakuten announced the launch of its own NFT trading platform dubbed Rakuten NFT.
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Federal Reserve Chair Pro Tempore Jerome Powell has called for crypto regulations in response to Russia potentially evading sanctions through cryptocurrencies. Citing the precedence of North Korea using stolen cryptocurrencies to fund its nuclear program, some senators have also expressed concerns that Russia and other nations may be using cryptocurrencies to undermine sanctions and obfuscate their cross-border transactions.
The Chicago Mercantile Exchange (CME) Group will launch new options trading for its micro Bitcoin and Ether futures product, which will be 10% the size of the respective tokens. These options are expected to start trading on 28th March, more than 4 years after the group launched their first Bitcoin futures contract way back in December 2017.
Chinese tech giant Tencent has filed a new patent with the Chinese National Intellectual Property Administration for virtual concerts, showcasing the company’s determination to come up ahead in the charge towards the metaverse. Last year, Tencent held a New Year’s Eve countdown festival in the metaverse, which saw over 1.1 million fans in attendance.
Bitcoin’s Price Action
Despite the ongoing global conflict, the markets have rallied significantly last week, and the price of Bitcoin rebounded sharply from the $34,500 region to reclaim $40,000 within a few short days. The coin is currently trading at $43,900 at the time of writing.
Some analysts have speculated that the markets are performing well due to Russia’s failure to achieve any progress in its invasion process, as reports have surfaced predicting that they were supposed to claim Kyiv in 4 days or less. Others have wondered if Russia has converted its assets into cryptocurrencies to escape the harsh sanctions that have been imposed onto them by world governments.
Regardless of the case, it seems like we have now established a range between $35,000 to $45,000, which Bitcoin may trade in between for the next few weeks. $46,000 is a strong resistance level to watch out for, though it is highly dependent on current affairs, just like how things have been in the past few weeks. The short-term support for Bitcoin lies just below $42,000, and interested buyers may want to wait for a response near that region before making a decision on making any investments.
Notable Pick of the Week
MyNeighborAlice ($ALICE)
Total Supply: 100,000,000 ALICE
Circulating Supply: 30,600,000 ALICE
Market cap: $226,716,206.48 (#190)
My Neighbor Alice is a farming-themed play-to-earn builder game built on Chromia. The game bills itself as a place where “players can buy and own virtual islands, collect and build exciting items while also making new friends.” Each player has their own avatar representing them in the game, which they can modify as they please. Players can buy virtual real estate from Alice, the game’s eponymous central figure, or the internal marketplace.
The metaverse craze will soon heat up again once the market resumes its bullish momentum. In the meantime, it is probably a good idea to look into quality metaverse projects in the crypto space to accumulate for the long term. $ALICE has bounced off its previous support at $6, both times with strong demand. However, it appears to be in a downtrend with the 50EMA acting as a resistance.
What do the Technical Indicators Say?
The BTC TradingView indicators (on the 1 day) is indicating Bitcoin as a buy recommendation. The moving averages are recommending Bitcoin as a buy (as compared to strong sell last week), while the oscillators are leaning towards neutral (similar to last week).
What will the Future Be?
The markets are relatively calm at the moment, though the buying demand has slowed down comparatively. If the range of $35,000 to $45,000 holds true, then it may not be a good idea to buy cryptocurrencies at range high, and we can probably trade the range for a few weeks. At the same time, we still need to observe current events and how things will play out from there.
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