Bitcoin, Ether, Major Altcoins – Weekly Market Update February 7, 2022

The total crypto market cap added $270 billion to its value for the last seven days and now stands at $1,95 billion. The top 10 coins were all in green for the same time period with XRP (XRP) and Solana (SOL) leading the pack with 27.4 and 26 percent of gains respectively. Bitcoin (BTC) is currently trading at $42,700 while ether (ETH) is at $3,070.

BTC/USD

Bitcoin closed the trading day on Sunday, January 30 at $38,000. It was the first red candle on the daily chart after three consecutive days in green for the biggest cryptocurrency as it successfully bounced back from the $33,000 low thus avoiding breaking below the June/July 2021 low.

Traders were divided in their opinions about the recent price action with some seeing the bounce as nothing but a bearish consolidation (BTC was drawing a bear flag pattern on the daily timeframe) backed by low volumes while others pointed out the exhaustion of the downtrend combined with increased on-chain activity and raise in buy orders.

On Monday, the BTC/USDT pair dropped down to $36,600 in the early hours of trading but quickly erased the losses by closing the session in green, at $38,493.

The trading day on Tuesday was when bitcoin touched the 21-day EMA and the diagonal downtrend line, which as expected could not be broken with the absence of high volumes.

The mid-week session on Wednesday came with a rejection around the mentioned level and a huge drop down to $36,800, which corresponded to a 5 percent decrease in price.

The correction (or confirmation of the bear flag, it depends on the point of view) continued in the early hours of trading on Thursday, February 3 as BTC briefly hit $36,400. Bulls were struggling to push the price above the solid resistance cluster where the mentioned short-term exponential average and the mid-term diagonal resistance were situated. Still, the coin closed the day in green, at $37,400.

On Friday, the BTC/USDT pair surprised everyone and formed a massive 12 percent green candle to reach September 2021 low and January 2022 support at $41,000. Altcoins followed in an aggressive manner.

The weekend of February 5-6 started with a relatively calm session on Saturday during which the biggest cryptocurrency remained flat.

Things did not change drastically on Sunday, but BTC was able to penetrate and stabilize in the resistance area above $41,000. It closed the week at $42,350.

What we are seeing on Monday morning is a continuation of the uptrend.

ETH/USD

The ether formed its third consecutive candle in green on Sunday, January 30, which resulted in a 19.8 percent increase in its price since it hit a 6-month low on January 24. It added 2.2 percent to its valuation for the previous seven-day period and managed to bounce back up from the lower boundary of the long-term uptrend channel. Trading volumes were still low, but the strong fundamentals behind the Ethereum project were once again attracting both investors and speculators.

On Monday, the ETH/USDT pair added another 2.4 percent, but not before hitting a daily low of $2,484. The leading altcoin closed the month of January with a 26.6 percent loss.

The Tuesday session was no different and bulls continued to push the price in the upward direction. This time it reached $2,800 – a level that acted as a resistance in the past (back in June 2021) and also as a support (in September 2021). It is also where the 21-day EMA lies.

The third day of the workweek came with rejection in the above-mentioned zone as ETH stopped at $2,675 with $2,611 as the daily low.

On Thursday, February 3, the coin was trading slightly lower – at $2,581 at the beginning of the session, but then quickly recovered and closed the day in green, at $2,700.

The Friday session was when the cryptocurrency market made of its trademark reversals. ETH, in particular, jumped up to $3,000, adding 11 percent to its value, climbing past September 2021 low and the short-term EMA.

The first day of the weekend came with a calm trading day. ETH hit the September 2021 weekly bottom, but could not extend its gains further.

On Sunday, it made another attempt to break above $3,060 but failed to do so.

The coin is currently trading a little bit higher – at $3,070.

Leading Majors

• Solana (SOL)

Solana was the best performing major altcoin during the last seven days. It successfully jumped back from the newly established support at around $90 and fill the gap to the 21-day EMA on the daily timeframe chart, which corresponded to a 26 percent increase. It continued to move North and as of the time of writing is chasing the $120 mark.

The trading volumes are on their way up since January 16 while the Relative Strength Index (RSI) moved out of the oversold area for the first time since mid-January.

On the other hand, the Solana ecosystem saw a 19 percent outflow in terms of total value locked on a seven-day basis, which is the biggest negative change after Binance Smart Chain, which lost 21 percent for the period.

What we can expect from Solana (SOL) is to consolidate above $110 with $138-$140 as the next possible target for bulls. Support around the psychological level at $100.

Altcoin of the week

The crypto market is back in green and the metaverse and gaming tokens started pumping again with Decentraland (MANA), Axie Infinity (AXS), and Gala (GALA) all registering 30+ percent gains.

GALA was one of the best performing digital assets at the end of 2021 and is now leading the Top 100 list with the biggest gains on a seven-day basis.

The GALA/USDT pair added 73 percent to its valuation during the last week and is now trading above its mid-January support at $0.33. The coin is 19 percent up on Monday as the next potential resistance will be the previous support around $0.45.

GALA is currently ranked at #51 on CoinGecko with a total market cap of approximately $2.8 billion.