Accounting firm KPMG becomes the latest publicly traded company to add crypto in its balance sheet

Ethereum and BitcoinPixabay
Bitcoin and Crypto Market Watch Tuesday, February 08, 2022 - 19:34

There has been a solid and optimistic change in the direction of the cryptocurrency markets this week with the bounce in Bitcoin’s (BTC) price above $42,000. Altcoins, after bleeding heavily in recent times, embraced BTC’s trend reversal with strong price actions as the total crypto market capitalisation teased $2 trillion again yesterday. Crypto trade volumes have also surged steeply by 40% today indicating a shift in market participants' appetite to buy. In this article, we analyze the price trends of major crypto assets, recent buying patterns of whales and short term outlook for BTC.

Bitcoin Breakout

BTC has broken out of a 3 month long diagonal downtrend that started in November. As BTC trading volumes spiked on 4th Feb, BTC mustered enough steam to break multiple resistances at $38,200 and $40,700 on a single day. It went on to breeze past $42,000 subsequently and is currently trading at $43,700 as of 5 pm IST today. The next major resistance for BTC will come at $45,500 and $47,000 while the short term support has formed at $42,700, the 50 EMA (exponential moving average). Though BTC’s momentum has been muted in the last 24 hours, its trading volume has increased by a whopping 53%.

The recent BTC’s move has been speculated to have come from the whales (large holders) who hold more than 100 BTC. According to on-chain data platform WhaleMap, big investors have been accumulating between the price range of $36,000 and $38,000 indicating a renewed market confidence. In addition, the sidelined capital hoping for a dead cat bounce (a brief recovery in the price of an asset followed by a downtrend) has been trying to catch on with BTC’s price action thereby driving the demand to higher prices.

Ethereum whales in action

According to data from Etherscan, which tracks transaction data on the Ethereum blockchain, top 1000 whale wallets have been accumulating Shiba Inu during the recent price correction. Shiba Inu (SHIB) is the 13th largest cryptocurrency today in terms of market capitalisation. With increased whale activity and ongoing coin burns, SHIB has become the highest gainer among the top 20 cryptocurrencies by raking in 54% in just one week. Although memecoins such as SHIB have no sound fundamentals or utility, the hype and the community behind it has been driving the value of these tokens. So, investors are advised to do their own research before investing considerable amounts in such coins as they can shed quickly if the market turns bearish.

Short term outlook for BTC and ETH

The mood in the market has shifted to cautious optimism with recent price movements augmented by positive developments including the news of accounting giant KPMG adding Bitcoin and Ethereum to its balance sheet. However BTC, having made a strong recovery from the lows of $32,900, is expected to undergo a brief correction in the coming days before making an attempt to break out to the other side of $45,000.

Ethereum (ETH), after getting rejected at $2,800, broke out of the downtrend near $2,700. ETH is currently trading near $3,070, up by 10% in the last seven days. In any case, ETH is expected to mimic BTC’s price action in the near future with short term support near $2,800 if a correction were to occur.

Use promocode TNM51 at www.giottus.com/profile#promo after registration to get Rs.51 worth free Bitcoin

Disclaimer: This article was authored by Giottus Cryptocurrency Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.

Become a TNM Member for just Rs 999!
You can also support us with a one-time payment.