Mixed signals from the cryptocurrency market

The Country Manager of Bitpanda Spain, Alejandro Zala, shared with Cointelegraph en Español his weekly analysis of the cryptocurrency market and indicated in the first place that during the past week, when Bitcoin registered mixed candles and moved mainly in a range, the closing of Last week’s Bitcoin candlestick was bearish. Which caused most of the altcoins to close lower as well.

Likewise, Zala also pointed to factors such as the current geopolitical tensions between Russia and Ukraine, in addition to the increase in inflation, speculation on interest rates and the alleged correlation between BTC and the US stock market, which mean that are affecting Bitcoin price movements.

“Over the last few weeks, each of these factors has promoted fear and risk selling. The crypto fear and greed index is at 52 points out of 100, up from 44 the previous week, indicating that current market sentiment is neutral,” Zala commented.

On the other hand, in the weekly analysis carried out by Zala, he mentioned some fundamental data, which according to his criteria, seem bullish. “As Bitcoin hashrate soared more than 31% over the weekend, reaching an all-time high of 248.11 EH/s (exahashes per second). Hashrate refers to the amount of computational power used to verify transactions,” he stated.

Bitcoin dominance index stands at 42.5%

For Zala, on the weekly BTC chart, the price closed with a candle that could be interpreted as a shooting star. This, as he tells us, indicates that the upper wick indicates bearish pressure and the rejection of the highs at the resistance level of 40,000 euros.

“The lower time frame chart shows that the prevailing trend has not changed significantly in the last week, as Bitcoin trades within the range of €35,200 and €40,000. The €40,000 level has been a major resistance zone in the past and represents an additional barrier to overcome,” he explained.

“The total cryptocurrency market capitalization now stands at around €1.7 trillion and the Bitcoin dominance rate has increased slightly over the week and now stands at 42.5%. This value shows that much of the total cryptocurrency market capitalization consists of Bitcoin, suggesting that in these uncertain times, traders appear to prefer Bitcoin to altcoins,” Zala added in analyzing him.

Consolidation process

Zala told us that consolidation (in technical analysis) refers to the fluctuation of an asset within a well-defined pattern. For him, it is usually interpreted as a signal of market indecision, which ends when the price of the asset moves above or below the trading pattern. “The consolidation process also gives traders the opportunity to trade in a range and try to take short-term profits. Currently, the major altcoins seem to be going through a consolidation process,” Zala said.

As to DOGEZala tells us that it has risen several times -up to 50%- in the last two weeks and then has fallen back to a range between 0.11 and 0.13 euros.

On TOD, told us that the Polkadot network cryptocurrency has turned away from the downtrend direction and is now trading between the support levels of €15.4 and €17.25 respectively. “The RSI momentum indicator is in the negative territory, which suggests that the bears are in command,” he noted in this regard.

About the price of ADA, Zala described that it continues to bounce off the support level of 0.9 euros. According to him, this usually, periods of low volatility are followed by range expansions. “Traders are waiting for a spark of momentum that can sustain a rally above the 1.10 euro resistance level,” he said.

Shiba Inu bulls push SHIB

Lastly, Zala commented that SHIB has held its place in the top 15 cryptocurrencies by market capitalization for a couple of months now. It has also gained several more headlines as a growing number of retail investors are entering the market and discovering the asset through SHIB’s vast community of users.

“Shiba Inu bulls are trying to push SHIB above the resistance level of €0.00002850. SHIB ranks 14th by total market cap, with a capitalization of €15.4bn, but is still considerably far from the high of €36bn it reached in October 2021,” Zala mentioned.

Disclaimer: This material is intended as a commentary on economic or market conditions and does not constitute financial analysis or recommendation. The analysis presented here corresponds to the Country Manager of Bitpanda in Spain and under no circumstances is an investment recommendation by Cointelegraph. Anyone, before investing, must carry out their own research and is responsible for their own decisions.

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