The past week was marked by an almost complete lack of movement on the part of Bitcoin, which mostly ranged between 36,000 and 38,000 euros. There have been some attempts to push the price above €40,000, but the sellers have always had the upper hand on the higher levels. Crypto Fear & Greed Index fell to the “Fear” area at 26/100, indicating that investors are still nervous. During the week, the index moved from 24/100 to 27/100 and was flat for a few days, indicating that investors have a bearish outlook for Bitcoin, at least from a market sentiment perspective.
Historically, periods of such negative sentiment were usually followed by positive returns soon after. Furthermore, Bitcoin and the cryptocurrency market have shown, in the past, that sentiment can change quickly: A pessimistic and sometimes fearful environment is an excellent buying opportunity for investors.
BTC/EUR Chart, Provided by Bitpanda
The weekly chart is showing a strong correlation with US stocks as Bitcoin is still within the large upward channel in a lower momentum movement. On a seven-week basis, the correlation coefficient between Bitcoin and US stocks is close to 0.90, with a value of 1 considered an “perfect correlation.” The 50-week moving average is slowly declining and acting as the first line of resistance.
Momentum indicators, such as the RSI and MACD, are often flat and move towards the neutral territory Investor frequency. At the moment, the uncertainty is particularly high as the bitcoin price is moving in the middle of the trading channel. In this case, despite the shape of the pattern, the direction of the breakout has not yet been determined.
Ethereum movement is mostly balanced
Ethereum formed a base above the €2800 level and started to show a good recovery after breaking out of the falling wedge pattern on the daily chart. Momentum indicators are positive and moving higher, but due to the generally low sentiment among investors, ETH’s movement appears to be slow and balanced. On the daily chart, a high of €2,900 has been formed and the price is consolidating the gains. ETH price could continue to rise if there is a clear move above the €3,000 resistance level.
ETH/EUR Chart, Provided by Bitpanda
Small and medium-sized cryptocurrencies show more dynamism
While Bitcoin has remained mostly flat over the past week, some small and medium-sized cryptocurrencies have shown positive performance. Among the fastest growing ApeCoin (APE)an icon associated with the NFT Bored Ape Yacht Club (BAYC) project.
APE saw a reversal from the €10 level and a wedge formation on a lower time frame. The price of the token has rebounded around 60% over the past seven days as buyers returned to the market and launched a rebound from its weekly lows.
APE/EUR chart, provided by Bitpanda
The reason for this price increase may be speculation by traders. In fact, it looks like Yuga Labs, the developer team behind the BAYC project, will soon push the metaverse, called the other side, towards a general sale of land that may require payment in APE. The rumor has not been confirmed, but it has nonetheless rekindled interest in the original. APE’s market capitalization this week reached 3.8 billion euros, taking the 33rd place in the ranking.
The Synthetix Network Token (SNX) has also proven its power, where the price bounced around 40% from forming the second highest and lowest level on the daily chart. The momentum is bullish, with the RSI and MACD well positioned in positive territory.
SNX/EUR Chart, Provided by Bitpanda
ZRX, the original token of the 0x exchange, has seen a strong rally this weekOn Wednesday, the price of the asset rose by about 50%.
ZRX/EUR Chart, Provided by Bitpanda
Major Cryptocurrency Tracking Bitcoin
Major currencies, including ADA, DOT, SOL, AVAX, LINK, and XRP mostly track Bitcoin’s movements It oscillates between support and resistance levels, without showing a clear slope or trend:
DOT/EUR chart, provided by Bitpanda
LINK/EUR Chart, Courtesy of Bitpanda
ADA/EUR Chart, Provided by Bitpanda
A sideways market is characterized by the price moving back and forth between the upper bound that acts as resistance and the lower bound that acts as support. The sideways market ends with a clear breakout in an uptrend or downward, forming a new trend. At the moment, Bitcoin leads the entire cryptocurrency market, with most digital currencies tracking its movements.
SOL/EUR chart, provided by Bitpanda
AVAX/EUR Chart, Provided by Bitpanda
XRP/EUR Chart, Provided by Bitpanda