Market update
Cointree Crypto Market Update - March 2nd 2022
Market report for traders
What’s happening in the market?
A strong 48 hours puts most coins up for the week
Bitcoin held the AU$52,600 level through most of the week and then made a sharp ascent over the last 48 hours, closing up 16%. Impressively, the number of non-zero bitcoin addresses has hit an all-time high of 40 million.
Ethereum followed a similar pattern to bitcoin and is 13% up for the week. Similarly, Cardano is up 10%, Solana is up 14%, Avalanche is up 16%, and Polkadot is up 17%. Still, Terra massively outperformed the market and is up over 50%, close to its all-time highs.
Ukraine receives over AU$30 million in crypto donations
After posting bitcoin and Ethereum addresses on Twitter, Ukraine has now received over AU$30 million worth of cryptocurrencies. In a reply to the Ukrainian government's tweet, the founder of Polkadot Gavin Wood said he’d donate AU$6.8 million of Polkadot if they posted a DOT address. The government posted a DOT address and Wood promptly sent 298,367 DOT worth AU$8 million.
Ethereum scaling solution is ahead of schedule
zkSync announced the test network release of an Ethereum Virtual Machine compatible Zero-Knowledge rollup (zkEVM). It’s the first implementation of a ZK rollup capable of running the full Ethereum environment and is years ahead of schedule.
Notably, a competing layer 2 protocol called StarkNet was launched on Ethereum. It also uses zero-knowledge proofs and can merge hundreds of transactions into one, drastically reducing fees for users. This technology has already been successfully deployed effectively on dYdX.
Technician’s Take
Bitcoin up 16% for the week
Bitcoin (BTC) held the AU$52,600 level mentioned in last week's column quite nicely and then made a sharp ascent over the last 48 hours, closing the week a respectable 16% up. Those that look at support and resistance levels in conjunction with volume will have noticed a very clean entry on the 24th, with a significant increase in volume.
With BTC now hanging above the previous support line of AU$58,500, it will be interesting to see if BTC will push further up past AU$62,400, or seek support a little lower.
If we look back to the 24th of January, there was a similar setup. However, BTC took a fair few more days before making a similar push and this move has closed higher despite starting from very similar levels.
Moving Average Convergence Divergence (MACD) has made a bullish cross and the Relative Strength Index (RSI) is slightly oversold. From here, I’ll be watching for signs of a retrace to find support or another push through AU$62,400.
Beginners recap:
- Bitcoin (BTC) is up 16% for the week.
- Relative Strength Index (RSI) is nearing oversold.
- Moving Average Convergence Divergence (MACD) made a bearish cross.
- Watching for a further push upwards or a retrace to find support.\
Disclaimer: 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.\ As cryptocurrencies remain volatile, all prices and percentages may have changed since the time of writing.
