Market report for traders

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What’s happening in the market?

BTC Closes in on 2022 Record as Crypto Market Passes AU$2.9 Trillion

Bitcoin started the week in strong fashion, with prices rising past AU$62,675 for the first time since the beginning of the year. On Monday, BTC/USD rose to an intraday high of $47,245, as prices rose to their highest point since January 2. At time of writing this, BTC/USD sits at $63,291.

Ethereum also rallied to multi-month highs on Monday, as the world’s second-largest cryptocurrency extended its recent gains. These gains saw ETH climb to an intraday high of AU$4,508, which is the most the price has hit since January 16. Today’s value is $4,609.

In other currencies, Solana rose by 3.25% at AU$149. Cardano sits at AU$1.60 following a 2.86% increase, Terra climbed an impressive +14.24% to AU$138, and Polkadot followed the other top altcoins along the sea of green with a 3.88% bump.

The Metaverse Gains Attention While Celebrities Adopt NFTs

The metaverse is gaining a lot of new interest from a range of people across varied lifestyles and disciplines. From celebrities to foodies, there’s been a surge in the adoption of NFTs.

Madonna, the undisputed queen of pop, has entered the Metaverse by buying a Bored Ape non-fungible token. Madonna joins a growing list of celebrities who have grabbed a piece of the NFT pie such as musicians Justin Bieber and Eminem. Celebrity chefs Tom Colicchio and Spike Mendelsohn have even launched their first Ethereum NFT collection, CHFTY Pizzas, in an effort to build a web3 community around culinary creators and their fans.

Meanwhile, one of the world’s oldest living cultures is meeting the world’s newest emerging tech as Indigenous Australians released a discussion paper on creating a First Nations Cultural Embassy in an effort to enter the Metaverse.

Technician’s Take

Bitcoin has broken the AU$62k resistance line after some solid intraday volume earlier this week saw some really nice pushes north. BTC is showing a bit of indecision as to where it wants to move next. Without any increase in volume there is a good chance we will see BTC hunt for support, which may well be back in our previous range.

I’ll be watching what BTC does over the coming hours to see if we will continue this run or if we will find new support or trace back down towards AU$51K

MACD is very much bullish with a nice example of how it measures the divergence of moving averages. RSI is pushing into oversold territory, so unfortunately another signal that the price may reverse here. I’ll be watching volume and price action closely here and looking for trade entries.

Beginners recap:

• Bitcoin (BTC) up 12.5% for the week
• Relative Strength Index (RSI) nearing oversold
• Moving Average Convergence Divergence (MACD) bullish
• Watching for a further push up or 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.