Weekly Crypto Market Report: March 28 - April 3, 2022 - BTC, ETH, COMP, AAVE & More

Market Fundamentals Analysis

Crypto has had a nice range over the weekend, though as of writing BTC is more or less stuck since the end of Friday. ETH, on the other hand, is hanging on to a 3% gain, and ETHBTC has now been steadily gaining for the past month on Merge anticipation. On March 14, BTC was C$50,930 and ETH was C$3,357, 0.066 in the cross. ETH has outperformed BTC in its recovery from the lows; additionally, when BTC sold off from C$60k to C$56k last week, ETH wasn’t hit nearly as hard. ETHBTC is now cleanly out of its range, and the next key level it will look to break is .078.

Another chart worth watching is SOL. After trading well for most of 2021, it was the L1 that sold off the most in Q1, at one point down 53% YTD. Since March 14, it has been one of the fastest horses in crypto, bouncing from C$100 to above C$175 at current writing. That leaves it still down 20% on the year, with ETH and many alts in the -5% YTD range, and given that this is a momentum asset class, it looks to be one of the more active names this week.

DeFi 2.0 heated up a bit this weekend with the announcement of 4pool, a Curve pool that will include UST, FRAX, USDC, and USDT. This pool stands a very good chance of becoming the generic stable pool, as previously liquidity was spread across 3pool, UST pools, and FRAX pools. The move will align the major players on vlCVX, which will drive a great deal of incentives to the pool. The DeFi 2.0 sector, which had been stagnating recently, receives a jolt off this news, with FXS up 65%, CVX up 27%, and LUNA up slightly over the weekend.

This week is the Bitcoin 2022 conference in Miami, meaning we could either get a market that drags as a result of many traders being in the conference, or we could get some extra volatility if any announcements come out of the conference. In 2021, Nayib Bukele used the conference to announce that El Salvador would introduce Bitcoin as legal tender, by far the biggest headline out of the event.

Several alts have impressed us this week. Namely, AAVE, COMP, SOL and NEAR, all have gained over 20% week on week. The AAVE bears tried to stall the recovery at the 200-day EMA of C$282, but the bulls did not give up much ground. Buying resumed rapidly on April 1 and the pair broke the 200-day SMA, indicating a move up in on the cards.

COMP saw the highest single-day growth and gave its investors a reason to rejoice, since June 2021. This came after the network-wide supply of COMP flipped into profits for the first time since December 2021. Similarly, SOL and NEAR also witnessed a surge.

As the Russia-Ukraine war approaches diplomatic talks, and the pandemic settles, the overall macroeconomic outlook seems to have started to improve. Regulatory frameworks continue to be developed across various countries, which further strengthens the case. However, we continue to remain cautious over the next few weeks and hope the recovery sustains.

Weekly Snapshot

Market Updates

-          The average Ethereum gas fee jumps to $20 per transfer, L2 fees follow rise.

-          Kazakhstan auditors go after crypto miners accused of exploiting tax benefits.

-          Total value locked in Defi nears lifetime high, Ethereum's TVL dominates by 54%.

-          India's crypto trading volume plummets as new tax rules enter into force.

-          CME Group launches Micro Bitcoin and Ether options.

-          Intel doubles down on ESG with launch of second-gen Bitcoin mining chips.

-          Dogecoin spikes 10% after news of Musk's $3B stake in Twitter.

Bitcoin Technical Analysis

Bitcoin, after retesting the support of C$51,000, closed in the green for the 8 consecutive sessions and the bulls managed to break the long-held resistance of C$57,500 making a high of C$60,500. However, the asset witnessed a profit booking at higher levels and the prices corrected almost by 8.2% and dropped to C$55430.

Currently, BTC is taking support and consolidating near its 200 Day Moving Average (C$56,600) and the horizontal trendline (C$57,700). If it bounces from these levels and beats the recent high then we can expect the bulls to resume the up move and the prices can further surge up to C$65,000. A close below the 200-day Moving Average will lead to further downfall and the prices can test C$54,500 and C$51,000 levels. RSI in the positive territory indicates that the bulls have an upper hand.

KEY LEVELS:

Weekly Sentiment by Coin

Measured buying continues, as NDAXers continue steadfast.

Rounding out around 50/50 again, nevertheless, there are notable standouts from this past week including, BTC had 72% of orders long, while MATIC and ALGO were short at 60% and 55%.

For the latest cryptocurrency prices, check out NDAX's Markets page.

Disclaimer:

Information provided in the weekly market report is for information purposes only and should not be interpreted as investment, legal, or tax advice. Prior to investing, it is very important to evaluate your investment objectives and your risk tolerance carefully. This technical report is not meant to provide guarantees of future performance, and users should not rely on it, as the actual performance and financial results may differ significantly.