Fear and big losses in the cryptocurrency market

Alejandro Zala, Country Manager of Bitpanda Spain, shared his analysis of the cryptocurrency market in Spanish with Cointelegraph.

On that occasion, Zala told us that the first two weeks of the year were not the best for Bitcoin or the cryptocurrency market as the general trend was down, with some deep dips that caused the capitalization to drop to around 1.75 trillion Euros and lost around 200 billion Euros in the last seven days. “For the past week, the crypto market has been mostly sideways but took a tumble on Jan. 6 as Bitcoin’s price fell to €35,000 followed by the rest of the market. According to the Fear and Greed Index, market sentiment is in a state of extreme fear and at its lowest since July 2021,” Zala said.

According to Zala, the 40% correction is neither unusual nor the largest we’ve seen in the past 12 months, so it’s too early to call it a bear market. Additionally, Zala claims, “we must consider that BTC is down more than 50% from April to June last year and fully recouped its losses in October.”

Ethereum suffers more losses than Bitcoin

Fear and big losses in the cryptocurrency market
Fear and big losses in the cryptocurrency market

Regarding Ethereum, Zala mentioned that this crypto-asset started the year down about 10% in the red. “ETH fell to a three-month low of €2,600 before bouncing back to €3,000. The price is moving in a falling wedge pattern, a pattern that ETH has followed twice in the past year. Both times, Ethereum successfully broke the pattern to the upside,” he said.

LINK, the best among major altcoins

Chainlink price surges to $25, a 40% rise since early 2022. LINK is trading above the 13 and 20 moving averages and the Relative Strength Index (RSI) is approaching overbought territory, indicating that the Bulls still control the price. MACD (Moving Average Convergence Divergence) is also in bullish territory,” Zala commented.

“LINK outperformed some major coins to become the 12th largest cryptocurrency by market cap, currently valued at around $10 billion,” Zala added to his analysis.

ADA regains its strength

According to Zala, ADA has started moving higher and surpassed the $1.06 mark. Price traded support for resistance in the descending channel on a 4 hour chart. The Relative Strength Index (RSI) posted higher lows while maintaining stable tops and forming an ascending triangle, suggesting an increase in purchasing power to it. “ADA is trading around 60% below its all-time high, despite Cardano seeing significant growth in active users and a ton of development activity over the past few months.”

Strong price increases for SHIB and DOGE

During a recent rally in altcoins in the market, Zala mentioned that Shiba Inu was the protagonist, and over the past week, SHIB has witnessed the first few days of price increases in almost a month.

“Shiba Inu has gained about 20% of its value since December 10th. The recovery is probably related to the market’s technical reversal, which was seen as extremely oversold, and the breakout of the descending triangle, which is seen as a move into a bullish pattern – he comments on Zala

Regarding the DOGE meme coin, Zala describes trying to reverse a downtrend into an uptrend. DOGE price is on the verge of breaking out of the descending triangle as investors bought heavily during the decline, sending the price 20% higher. The RSI is at the 50 level, which indicates bullish momentum, he explained.

IOTA defends the support of 0.9 euros

For Zala, IOTA bulls are staunchly defending the €0.9 support level, an area he describes as a recurring level for the token, considering its price has returned to this level multiple times in the past. “IOTA is currently hovering just below the €1 level and falling from the €1.36 level after a recent sell off. Both the RSI and MACD momentum indicators are showing positive movement and the potential for a long bull run, Zala added.

In closing and concluding, Zala highlighted the following: “In the second quarter of 2022, the launch of two new IOTA networks and their native coins, Shimmer (SMR) and Assembly (ASMB), which Bitpanda allocated for IOTA holders on the platform. Bitpanda Pro will also support SMR and ASMB airdrops.

Disclaimer: This material is intended as commentary on economic or market conditions and does not constitute financial analysis or advice. The analysis presented here corresponds to Bitpanda’s Country Manager in Spain and under no circumstances constitutes investment advice from Cointelegraph. Everyone must do their own research before investing and are responsible for their own decisions.

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