Lacklustre Crypto Market

Chart of the Day

The crypto market seems to be stalling in terms of price action as rising inflation uncertainties and concerns over Omicron continue to erode investors' confidence. As a result, BTC failed to clear the $48.5k resistance level over the weekend, and is currently trading below the $47k level (an on-chain price wall, if you recall from our previous post) while showing possible signs of downside exhaustion. In the same vein, ETH also momentarily went south of the $3,700 level due to dismal ETH trading volumes across major exchanges. Its price has since rebounded, but remains below the $4,000 psychosocial resistance level. Many other large (by market cap) altcoins have also had their prices take a hit in the past week, with the exception of an exclusive few that managed to weather the overall market pullback. LUNA, for instance, posted a 10% gain within the last 24 hours even through said market slump. Likewise, MANA, LINK, and XRP also all saw green amid the sea of red. From this, it may seem like the altcoin party has already started. Whether this party will last, however, is still sorely dependent on a key on-chain occurrence: a BTC bullish divergence. From a macro perspective, it is inevitable that the U.S. dollar will not fare as well against other major assets in an inflationary environment. Hopefully, the negative correlation between BTC and the DXY as seen from the chart above will be able to shed some light on BTC's next move.