The Crypto Weekly Lookout: February 7, 2022 edition
The crypto market has started the week strong, regaining its $2 trillion market cap according to CoinMarketCap. The market surged over the weekend following strong Amazon earnings and better than expected US jobs data. This in spite of the fact that Meta (formerly Facebook) had a weaker than expected quarter and the belief that a tighter job market means a higher chance of Fed tightening. Remember, macro matters more now since the crypto markets have been moving in lock step with the equity markets recently.
Additionally, the Crypto Fear & Greed Index has finally left the “extreme fear” zone and is currently sitting in the “fear” zone at 45 (out of 100) whereas this time last week the index was at 20. The improved mood was aided by Bitcoin’s RSI breaking out of its downtrend - an important technical development.
Investors should also be aware that the first week of February was a national public holiday in China for the Chinese Lunar new year. Liquidity should be higher going forward as the festivities subside.
Where Bitcoin (BTC) goes, most of the market follows. After closing last week at $41.6K, it seems the downward trend may be over as BTC has already rallied to the $44K level as of this post. Turning the $44K level into support would be super bullish since this level also corresponds to the 50W EMA.
Cardano (ADA) is one to watch this week as well as ADA addresses with a balance between 10K and 1M ADA have grown by 15,000% since mid-December 2021. This group of investors have more than doubled its holdings according to Santiment. Moreover, addresses holding between 1M to 10M ADA have increased by over 40% since January. Even crypto exchange Kraken recently noted that Cardano’s price action relative to its growing daily transactions could indicate more room to run.