Market Analysis – 8th April 2022 | Bitcoin - Cryptocurrency
Market Analysis – 8th April 2022 | Bitcoin - Cryptocurrency
April 2022 - the first week, recent filings revealed that Elon Musk, the CEO of Tesla, has acquired a 9.2% stake in the popular social media platform Twitter. As a long-time supporter of the memecoin Dogecoin, Musk's new acquisition was seen as a bullish move for $DOGE, which proceed to pump by more than 22% after the news broke. Musk had previously shared a poll on Twitter, asking if Twitter adheres to the principle of free speech, which he deems as “essential to a functioning democracy”. Cryptocurrency has been an increasing part of Twitter, which had recently opened support for NFT avatars for Twitter Blue, a paid subscription service.
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Sales of NFTs on the Solana network have recently exceeded $1.6 billion, now sitting behind just Ronin and Ethereum. It is also ranked second just behind Ethereum when we look at the total sales of NFTs over the last 30 days. With OpenSea enabling sales of Solana -based NFTs, this figure should increase even more in the future.
The United Kingdom government has announced an amendment to its existing regulatory framework on stablecoins as a means of payment. They intend to “take the necessary legislative steps” to incorporate stablecoins into the nation, and will also create a “Cryptoasset Engagement Group” to explore new developments in the crypto market, such as a nonfungible token minted by the Royal Mint in summer 2022.
Following the recent hack on Axie Infinity, its developers are working to upgrade the security of the platform before enabling the Ronin Bridge again. Sky Mavis, the creators of the game, has also raised $150 million in a new funding round led by Binance to reimburse the funds lost from the hack. In addition, the developers have also decided to increase the number of validator groups to 21 in the next three months to prevent future exploits.
Finally, ProShares has filed a registration statement with the US Securities and Exchange Commission to list shares of a Short Bitcoin Strategy ETF. It is currently unclear what impact such an ETF would have on the overall market, as critics have often pointed to derivatives as a way to manipulate the market by inflating volume and increasing volatility.
Bitcoin's Price Action April 8, 2022:
The weekly candle for last week was a spinning top, typically characterized as a short body with long upper and lower shadows. This represents indecision about the future direction of Bitcoin, while also confirming that Bitcoin was unable to close above $48,000.
Meanwhile, what confirmed the bearish momentum of Bitcoin was its inability to close above the downward resistance. This week, Bitcoin made several attempts to reclaim $47,000, but was brutally rejected every time, ultimately dropping down from $45,000 after ranging between $45,200 to $46,400 for a few days.
Bulls would be happy to know that MicroStrategy and Terra LFG are still accumulating Bitcoin, with the former announcing that its subsidiary has acquired another 4,197 Bitcoin over the last two months. Meanwhile, Terra's CEO Do Kwon announced on Twitter on 6th April that they have acquired another 5,000 Bitcoin. It seems like there is still a way to go before Terra can complete its purchase of $10b worth of Bitcoin, and bulls will likely cling to the hope that this would save the market somehow.
The next support lies at $42,800, with the next support at $40,600. If $40,000 is lost, then $38,000 would most likely be the next destination. Meanwhile, the confluence of the 20 and 100EMA on the 4H chart is at $44,800, and traders can likely offload their longs at that price level.
Notable Pick of the Week April 8, 2022:
Dogecoin ($DOGE)
Total Supply: 132,670,764,300 DOGE
Circulating Supply: 132,670,764,300 DOGE
Market cap: $19,384,389,882.22 (#12)
Dogecoin (DOGE) is based on the popular "doge" Internet meme and features a Shiba Inu on its logo. The open-source digital currency was forked from Litecoin in December 2013. Dogecoin's creators envisaged it as a fun, light-hearted cryptocurrency that would have greater appeal beyond the core Bitcoin audience, since it was based on a dog meme.
$DOGE has been consolidating for over a month, breaking above $1.30 to reach a 2-month high of $1.80 following the news that Musk acquired a 9.2% stake in Twitter. As one of the oldest and most popular memecoin, it may be worthwhile to acquire some $DOGE for the long-term, especially since Musk will always proclaim his support for the coin. $1.35 to $1.4 is a good range to accumulate some $DOGE for a quick 10 – 20% gain.
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 sell (as opposed to strong buy last week), while the oscillators are leaning towards a neutral recommendation (similar to last week).
What will the Future Be?
Bitcoin has lost most of the gains it has made last week, and bears are now dominating at the moment. With each passing day, $40,000 seems like a stronger and stronger possibility. As such, please exercise caution in your trading and do not HODL any alts that do not hold any promise.
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