Cointree Crypto Market Update - February 3rd 2021

Market update for traders

Jump to the beginner's version A week dominated by social media sees Bitcoin stuck in neutral... Welcome to this week’s market update and another week in the extremely eventful cryptocurrency market. We began the week with Bitcoin finding a floor at $40,000 AUD and confirming the base of a larger symmetrical triangle going back to the start of 2021. The week was not without excitement. Boosted by an endorsement of Bitcoin by Elon Musk, the frenzied sentiment exploded BTC 16% to the upside, a move of over $7000! With a clear breakthrough of the triangle’s upper trendline and strong social sentiment behind it many would have expected continuation, however $50,000 proved to be a wall that Bitcoin could not break and bears turned up with relentless energy. The subsequent fall saw Bitcoin drop back into the triangle pattern, declining over 15% in a seesaw battle between buyers and sellers to now sit at $44,000.

Recapping Monday to Sunday last week in detail: buoyed by a second touch off the 200 EMA in as many week’s and a reclamation of the psychological resistance level of $40,000, buyers found energy to push BTC above the 50 & 100 EMA at $43,000.\ On the 29th of January, the richest man in the world, Elon Musk, changed his Twitter bio to #bitcoin, and along with a suggestive tweet, he sent the market wild - seeing a huge wave of volume that launched the world’s largest Cryptocurrency $7,100 higher to $50,000 AUD. Unfortunately for bulls, the euphoria was short-lived. $50,000 was met with a ferocious market wide sell off that quickly erased the gains made from the “Elon Musk pump,” catching out FOMO traders and speculators alike. The only technical indicators stopping BTC going lower were the 50 & 100 EMA’s. Looking forward, the charts are telling us that Bitcoin is struggling to find strength to the upside and bears are likewise failing to follow through at 40k AUD. As we expect more sideways action the fundamental picture is bullish for Bitcoin here. Exchange reserves are at a multi-year low and 35,000 BTC were removed from Coinbase on Monday. Bitcoin is gravitating toward the upper trendline of the triangle and if the 50/100 EMA holds, then we could see a break-up soon or a confirmation that the market is desiring to revisit $40,000. As Bitcoin chops, the altcoin market has been given oxygen to run - some helped by strong sentiment on social media. For the major altcoins: Dogecoin (DOGE) leads all comers over 7-days with a whopping rise of 272%. XRP continues its good form over the last two weeks, up 32%. Sushiswap (SUSHI) has regained momentum after a truly epic start to 2021, up 43% for the week and setting a new ATH.

Read our full market update here.

Market update for beginners

A week dominated by social media sees Bitcoin stuck in neutral... Welcome to this week’s market update and another week in the extremely eventful cryptocurrency market. We began the week with Bitcoin finding a floor at $40,000 AUD and in an exciting twist...an endorsement of Bitcoin by Elon Musk saw a frenzied buying spree in BTC that pushed price 16% to the upside, a move of over $7000! With a clear breakthrough of the blue upper trendline and backed by strong social sentiment Bitcoin rallied to $50,000! However, $50k AUD proved to be a wall that Bitcoin could not break and sellers arrived with relentless energy. The seller onslaught over the next few days reduced Bitcoin to $44,000, a decline of 12%

Recapping Monday to Sunday last week in detail: buoyed by strong buying presence at the $40,000 resistance level, the market found energy to push BTC above $43,000. On the 29th of January, the richest man in the world, Elon Musk, changed his Twitter bio to #bitcoin, and along with a suggestive tweet, he sent the market wild - seeing a huge wave of buying volume that launched the world’s largest Cryptocurrency $7,100 higher to $50,000 AUD. Unfortunately for buyers, the euphoria was short-lived. $50,000 was met with a ferocious sell off that erased all the gains made from the “Elon Musk pump.” Looking forward, the charts are telling us that Bitcoin is in neutral - struggling to find strength to the upside and sellers are failing to follow through below 40k AUD. As we expect more sideways action the fundamental picture is bullish for Bitcoin here. Exchange reserves are at a multi-year low, and 35,000 BTC were removed from Coinbase on Monday. Bitcoin is gravitating toward the upper trendline (blue), therefore we could see a break-up soon or a confirmation that the market is desiring to revisit $40,000. As Bitcoin chops, the altcoin market has been given oxygen to run - some helped by strong sentiment on social media. For the major altcoins: Dogecoin (DOGE) leads all comers over 7-days with a whopping rise of 272%. XRP continues its good form over the last two weeks, up 32%. Sushiswap (SUSHI) has regained momentum after a truly epic start to 2021, up 43% for the week and setting a new ATH.

Read our full market update here.