Crypto Market Dominance

 

 

 

 

Crypto Sentiment

The sentiment towards the cryptocurrency market is slowly exiting the fear zone and
has improved from last week’s 31 to “39” this week.

 

Another data to evaluate the sentiment of the general public would be to look at Spent
Output Profit Ratio (SOPR). What is SOPR? In laymen terms, it indicates if people have
sold at a profit or if they sold at a loss. An SOPR value above 1 indicates that profit
booking dominated loss booking and below 1 indicates that loss booking dominated
profit booking. A value of 1 indicates that the coins were sold at their purchase price.
The Adjusted SOPR filters out transactions that are younger than 1 hour, thus,
clearing out noise from the metric.

 

 

The aSOPR for this week has edged above “1”, which indicates that the coins are being
sold at their purchase price. For trend reversal the metric should stay and oscillate
above the level of 1.

 

 

Who is buying: Whales or Retail Investors?

The number of addresses with at least 0.01 Bitcoin has continued its uptrend and
surpassed last week’s value. Meanwhile, the number of addresses with at least 100
BTC has increased slightly compared to last week’s data.

 

 

 

The number of addresses holding at least 10,000 BTC has increased by 5% in the last
month. This shows that the whales or large investors have been adding during the
bear phase and the recent price movement is due to strong hands buying.

 

 

Are we out of the Bear Market ?

 

MVRV ratio is equal to the market capital divided by realized capital of Bitcoin. Realized
capital unlike market capital does not use the current market price, but rather uses the
prices each Bitcoin when they last moved.

Currently, the metric stands at 1.08. In the previous bear markets, we have seen that
the metric falls below 1 and oscillates below 1 for few days or months which mark the
bottom of the bear market. As the metric moves above 1, the trend reverses. Since, the
metric is above 1, we can say that the market has started moving out of the bear
phase.

 

Realized price is the value at which coins were purchased divided by the total number
of coins in circulation. Realized price acts as a psychological support area and in all
bear markets we have noticed that market bottom occurs when realized price is more
than the market price.

The BTC price has moved above the realized price and this might suggest the end of
bear market but $23,213 (realized price before price went below it) acts as a major
support area and the price must sustain above it for the momentum to continue.

 

 

Overall Market Performance

DOW JONES

 

Dow Jones Industrial Average gained by 3% in the last week closing in green for the
fourth consecutive week. The daily trend for Dow Jones has broken above the
descending channel pattern. An immediate resistance is expected at 33,300 level.

 

 

GOLD FUTURES

Gold Futures made over a 3% surge over the last week, nearly touching the $1,800
mark. The daily trend for Gold continues to traverse within a descending channel
pattern, moving in an uptrend. The next resistance is expected at $1,840

 

 

BITCOIN

Bitcoin crossed the $24,000 level during the past week. The daily trend for BTC is
moving within an ascending channel pattern. The next resistance is expected at $32.3K
and key support is expected at $19K.

 

 

ETHEREUM

Ethereum against BTC closed positive for the 4th successive week. The 4-hourly trend
for ETH-BTC has formed an ascending triangle pattern. The next resistance is expected
at 0.076 and an immediate support is expected at 0.046

 

 

Highlights of the week

 

Bitcoin Lightning card is faster than Mastercard in
contactless payment. The card powered by the Bitcoin
Network completed the payment in 3.4 seconds, whereas
the Mastercard took almost double the time

 

Earlier Tesla had sold 75 percent of its bitcoin (BTC) holding
for a total of $936 million. In the process, the company made
a profit of $64 million in the second quarter of 2022.

 

 

 

Cathie Woods Ark sold 1.4M Coinbase shares worth $75M.
This news comes days after it was reported that the U.S.
Securities and Exchange Commission is investigating the
company for allowing Americans to trade in tokens that
should have been registered as securities.

 

Our Pick of the Week

Chiliz (CHZ)

We expect a gain of 10% from the Buy Price of 0.1284 USDT and
outperform BTC in the coming week.

 

 

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