Market Analysis – 15th April 2022 | Bitcoin - Cryptocurrency
Market Analysis – 15th April 2022 | Bitcoin - Cryptocurrency
April 2022 - This week, Epic Games, the publisher of the wildly popular Fortnite, has announced a $2 billion funding round to further develop its presence in the Metaverse. While this deal is still subjected to regulatory approval, it would bring up Epic’s equity valuation to $31.5 billion if passed. This funding round would also include a $1 billion investment from Sony Group Corporation and KIRKBI, the company behind the LEGO Group.
Next, Brazil has announced the incoming approval of a new law that would regulate the cryptocurrency market in the nation. It is expected to be approved by Congress in the first half of 2022, and would allow the Brazilian president to determine a federal entity responsible for establishing rules for cryptocurrencies. However, it is important to note that this law would not make Bitcoin legal tender in Brazil, as some rumours have previously suggested.
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Mozilla has started to accept donations in cryptocurrencies again, though they are attempting to appease environmental groups and advocates by only accepting proof-of-stake crypto donations. This means that two of the largest cryptocurrencies by market cap – Bitcoin and Ethereum – will not be accepted by the company for the time being. However, some critics have publicly spoken out against such an action, arguing that the energy consumption of Bitcoin mining may be incorrectly represented as it does not show the percentage of clean energy that was used.
Some exchanges have garnered a bad reputation for ‘pump and dump’ schemes on some of the projects that they have listed, and one such example would be Coinbase. To increase transparency on potential listings, the exchange has issued the names of 50 projects that could possibly be listed in the second quarter of 2022. The exchange believes that this new approach could promote information symmetry, which would improve efficiency and fairness in the market.
Finally, Ethereum Merge has been postponed once more, and its developers are now estimating that it would be launched “a few months after” June. After this upgrade, the Ethereum network will move from a proof-of-work consensus algorithm to a proof-of-stake consensus algorithm, and some analysts are predicting that this would create a massive bullish momentum on the cryptocurrency in the second half of 2022.
Bitcoin’s Price Action
In a complete turn of events, Bitcoin encountered a local top near $48,000, and was swiftly rejected to drop down below $40,000. It appeared to have gone through a resurgence on Monday, breaking above $43,000, though that seemed to be a bull trap that quickly led to Bitcoin plummeting to a new low.
Bitcoin is currently trading above $41,000 at the moment, having spent two days consolidating from the range of $39,200 - $40,400. However, most analysts believe that this is yet another bull trap, and $41,800 should be the local top for any shorting or profit-taking.
The RSI on the daily chart stands at 42.92, while the confluence of the 20 and 50EMA is near $42,500, which is where we would expect any upper wicks to hit before a quick pullback. The next support will be around $38,600, with $37,500 appearing as the final frontier before a plunge down to $35,000.
With Putin and Trudeau declaring that Russia is conducting a genocide, it appears that the global unrest is showing no sign of stopping at any moment. This has also caused havoc with regards to the global inflation rate, so we are of the opinion that any pump may simply be a dead cat bounce for the time being.
Notable Pick of the Week
Shiba Inu ($SHIB)
Total Supply: 589,735,030,408,323 SHIB
Circulating Supply: 549,063,278,876,302 SHIB
Market cap: $14,488,879,814.85
As the self-proclaimed “DOGECOIN KILLER”, Shiba Inu has grown into something of its own with the development of an active community, and listings on several prominent exchanges like Coinbase and FTX. This meme coin quickly gained speed and value as investors are drawn in by the cute charm of the coin paired with headlines and tweets from personalities like Elon Musk and Vitalik Buterin.
For investors with a high-risk appetite, we would recommend accumulating SHIB from $0.000024 onwards. We believe that memecoins may be intrinsically worthless, but they will pump the hardest at the hint of any bullish news due to the community behind the project. You can take profit around $0.00003, or the next resistance level near $0.000033.
What do the Technical Indicators Say?
The BTC TradingView indicators (on the 1 day) is indicating Bitcoin as a sell recommendation. The moving averages are recommending Bitcoin as a strong sell (as opposed to sell last week), while the oscillators are leaning towards a sell recommendation (as opposed to neutral last week).
What will the Future Be?
The bulls appear to have suffered a crushing defeat, and we are now flirting with the prospect of $39,000 over the weekend. The narrative of Terra seems to have run its course, and we need another new reason or narrative for the market to pump once more.
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