This week had some interesting new tech releases in the form of Yuga Labs Bitcoin NFTs, Web3 gaming by Unity games, and the launching of a new CEX killer by Koii Labs and Idexos. Markets made significant moves to end the week after a slow consolidatory start, while some altcoins like NEM and Xmon Tokens had large volatile moves. Regulatory pressures continued this week with Coinbase CEO Brian Armstrong chiming in. Let's dive in!
This week while Bitcoin and ETHs price action consolidated and 30-day crypto capital flows returned to positive levels, altcoins like COIN spiked 10% while MATIC crashed 13%. We also saw the new L1 Protocol Kaspa (KAS) explode by 102% following important news releases, with crypto adoption and new tech dominating this week’s market.
Bored Ape-Parent Yuga Labs entered the new Bitcoin NFT craze as they gear up to release their new collection on the Bitcoin-based Ordinals protocol. MetaMask, on the other hand, is bridging the gap between users and Web3 Game interaction, after launching its developer kit SDK. While Koii Labs, Idexos aims to replace CEX’s with the launch of a new middleware bridge and Chainlink pushes Web2 and Web3 integration via its Serverless Developer Platform.
This week saw a continued push around the world for a uniform approach toward crypto regulation, which saw positive developments by the European commission launching it’s blockchain regulatory sandbox. While we saw Coinbase CEO Brian Armstrong calling for the US to create a ‘clear rule book’ so that the industry can continue to be built, Gary Sendler (SEC's chairman) kept arguing about custody.
Japan is leading the way in adoption with prominent tech companies MUFG, SMBC, and Fujitsu entering agreements for the ‘Japan Metaverse Economic Zone’, alongside three major banks testing and launching the ‘Japan Open Chain’ stablecoin. On the other side of the world, 70M customers received access to Brazil’s Nubank Nu-coin crypto loyalty initiative and Playboy announce the launch of ‘MetaMansion’
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Bitcoin continued to hover around the $24,000 price level this week, before aggressively breaking lower toward the 1D 50 EMA while on-chain metrics signaled bullish signs. We saw Accumulation address, Average Block Size, and Lightning Network transactions reach all time highs across the board. But caution may be needed as $710M BTC options expire.
TL/DR:
The LTFs tell the HTF story perfectly, we can see how price continued to raid stops both above and below short-term highs/lows before testing the equilibrium of the bearish trend we had formed.
We then saw price break below the 1H 50EMA and move aggressively bearish, targeting the closure of 1H fair value gaps and the mitigation of bullish order blocks in deep discount.
We would now expect some form of relief to ensue as price starts the cycle of drawing in liquidity once again. From here a bullish retracement to meet the 1H 50 EMA would seem probable. Alternatively, a push lower to mitigate the extreme bullish order block or raid the 1D sell-side liquidity could be on the cards.
TL/DR:
BTC hovered around the $23,500 price level this week, before finally breaking lower, targeting the 1D 50 EMA as support.
We saw price consolidate throughout this week, generating liquidity on both the bullish and bear sides of the market, before price plummeted to $21,700, finding support at the bullish order block at the extreme of the daily range we have been within.
Along with the 1D 50 & 200 EMA, we would expect price to either find support leading to a bullish move, which could be short- or long-term, time will tell, or we will see the ema's fail to act as support as we crash lower raiding 1D sell-side liquidity targetting discount of the wider monthly range.
ETH’s on-chain data signalled an uptick this week with addresses holding 32 ETH or more improving from January’s low according to Glassnode. However with 17.4M ETH unlock soon to take place, market analysts are signalling a potential 25% correction. We also saw binance burn 8.8B LUNC after the Terra Classic V1.1.0 upgrade went live.
TL/DR:
ETH was driven heavily by BTC's price this week, as we also saw consolidation take place throughout the week, finally being met with bearish volatility to the end of the week.
Price had been consolidating atop the 1D 50 EMA, which we have seen price now test below. Whether we get a wick closure or body closure will be telling as to the underlying bullish/bearish pressures that have a hold on the current price.
Moving forward, we look to the $1510 price level, which sits just below this EMA cluster and acts as support at deep discount of the 1D range, where we would expect a bullish rally of sorts to ensue. Alternatively, a retracement up into the $1710 price range would be ideal for sellers to position for a short-term play at a minimum.
Bitcoin continued to hover around the $24,000 price level this week, before aggressively breaking lower toward the 1D 50 EMA while on-chain metrics signaled bullish signs. We saw Accumulation address, Average Block Size, and Lightning Network transactions reach all time highs across the board. But caution may be needed as $710M BTC options expire.
TL/DR:
The LTFs tell the HTF story perfectly, we can see how price continued to raid stops both above and below short-term highs/lows before testing the equilibrium of the bearish trend we had formed.
We then saw price break below the 1H 50EMA and move aggressively bearish, targeting the closure of 1H fair value gaps and the mitigation of bullish order blocks in deep discount.
We would now expect some form of relief to ensue as price starts the cycle of drawing in liquidity once again. From here a bullish retracement to meet the 1H 50 EMA would seem probable. Alternatively, a push lower to mitigate the extreme bullish order block or raid the 1D sell-side liquidity could be on the cards.
TL/DR:
BTC hovered around the $23,500 price level this week, before finally breaking lower, targeting the 1D 50 EMA as support.
We saw price consolidate throughout this week, generating liquidity on both the bullish and bear sides of the market, before price plummeted to $21,700, finding support at the bullish order block at the extreme of the daily range we have been within.
Along with the 1D 50 & 200 EMA, we would expect price to either find support leading to a bullish move, which could be short- or long-term, time will tell, or we will see the ema's fail to act as support as we crash lower raiding 1D sell-side liquidity targetting discount of the wider monthly range.
ETH’s on-chain data signalled an uptick this week with addresses holding 32 ETH or more improving from January’s low according to Glassnode. However with 17.4M ETH unlock soon to take place, market analysts are signalling a potential 25% correction. We also saw binance burn 8.8B LUNC after the Terra Classic V1.1.0 upgrade went live.
TL/DR:
ETH was driven heavily by BTC's price this week, as we also saw consolidation take place throughout the week, finally being met with bearish volatility to the end of the week.
Price had been consolidating atop the 1D 50 EMA, which we have seen price now test below. Whether we get a wick closure or body closure will be telling as to the underlying bullish/bearish pressures that have a hold on the current price.
Moving forward, we look to the $1510 price level, which sits just below this EMA cluster and acts as support at deep discount of the 1D range, where we would expect a bullish rally of sorts to ensue. Alternatively, a retracement up into the $1710 price range would be ideal for sellers to position for a short-term play at a minimum.
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Disclaimer: The content of this article is for general market education and commentary and is not intended to serve as financial, investment, or any other type of advice.
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