Bitazza Crypto Weekly: Metaverse Here To Stay With Leading Brands Flocking To The Trend -

Crypto Weekly: 7 – 13 February 2022

While the digital asset market as a whole has been slow over the past couple of months; NFT, Metaverse, and GameFi tokens have proven that they are able to thrive even under bearish conditions.

The Block Data Dashboard reported that NFT trading volume reached $6.13 billion this year in January alone. This represents a 129% increase in trading volume in January 2022 compared to December 2021. Asides from Ethereum-based NFT marketplaces, a significant portion of NFT trade volume has also been recorded on Solana, with NFT sales on SOL exceeding the $1 billion mark in all-time volume.

World-leading media and entertainment conglomerate Walt Disney Company has announced that they are looking to hire a business developer with NFT experience. The job listing perhaps hints that Disney may be bullish on NFT and could explore the NFT space further in the near future. Similarly, executives from iconic game developer Nintendo have admitted that they are interested in NFTs and the metaverse but are still determining how exactly they will be incorporating them into their core business model.

Many are predicting that we will see even more world-level companies and brands explore or incorporate NFT technology in their offerings, which would be an undeniable boon to the growth of NFT/Metaverse tokens as well as the blockchain industry as a whole.

On that note, Fortune Business Insights reports that they expect the blockchain industry to grow exponentially over the next ten years. They predict that the blockchain market cap will reach $104 billion by 2028, with an annualized growth of 55.8% led by North America.

MicroStrategy posted a fourth-quarter loss after taking a $146.6 million impairment charge to write down the value of its Bitcoin holdings. Throughout 2021, MicroStrategy purchased 53,922 BTC at an average price of $48,710 per unit, totaling 124,391 BTC in their holdings. Recently, the Michael Saylor-led company purchased an additional 660 BTC at an average price of $37,865.

Finally, El Salvador is proceeding with its plans to install 1,500 Bitcoin ATMs throughout the country, as well as relaunching their Chivo wallet. The Chivo wallet relaunch is expected to fix concerns related to stability and scalability and should provide a working solution to over 4 million users.

Weekly Technical Analysis: 7 – 13 February 2022

Bitcoin (BTC)

BTC has had a strong rally, managing to break through the $40,000 resistance level, which will act as the support level for this week. If support can remain intact, the short-term trend for BTC is bullish, with the market leader looking to target the $50,000 resistance level this week. If BTC can consistently create higher highs this week, this could potentially signal that this round of corrections is over; however, whether BTC will enter an uptrend or move sideways coming out of the downtrend remains to be seen.

Ethereum (ETH)

ETH has rallied alongside BTC; however, a bullish reversal cannot be confirmed until ETH successfully breaks through resistance at the $3,400 level. Short-term support is set at $2,800. If support remains intact, this could be an excellent entry price for both investors or traders looking to buy and hold or take short-term profits, respectively.

Gala Games (GALA)

GALA has posted outstanding returns this week, managing to outperform the rest of the market with its +64.9% performance this past week. If the 8 Baht support level remains intact, treat this as a good entry point for investors and traders. Resistance is set at 15 Baht, which may be a good exit point for traders looking to secure a profit. Considering how well GALA has performed over the week, traders are cautioned against chasing the price and should consider purchasing when prices dip to be safe.

Shiba Inu (SHIB)

SHIB is up by 40.9% from last week, surpassing most expectations. A bullish reversal cannot be confirmed until the meme coin can surpass resistance at the 0.0011 Baht level. Short-term support is set at the 0.0008 Baht mark. News regarding upcoming Shib Inu network upgrades should buoy the rally this week; however, sustained recovery for SHIB will have to rely on something more than just optimism.

Trading and Investment Considerations For The Week

GameFi tokens have rallied, in line with predictions last week that anticipated that if the market were to recover, GameFi and Metaverse tokens would likely see particularly strong rallies.

Bitcoin successfully broke through the resistance level at $40,000 and is gradually beginning to move sideways. Other tokens are following in BTC’s wake and recovering, led by GameFi tokens like GALA, SAND, and MANA that have all had successful upwards reversals in the past week. During this period, traders are advised to focus on tokens performing strongly and entering on dips if the opportunity presents itself.

Despite this, we cannot say for sure that BTC’s upwards reversal is confirmed until the market leader can continue consistently creating higher highs and higher lows. Support is set around the $39,000 – $40,000 area. If the Support level can remain intact this week, overall trading activity in the digital asset market will likely pick up once more.

If BTC can successfully recover, it will look to challenge the initial resistance level at $50,000 in its next bull run. However, whether a proper bullish recovery actually takes place may depend on macroeconomic factors that could affect the Crypto market. Keep an eye on the upcoming Consumer Price Index (CPI) figures on February 10. If CPI and the rise of inflation aren’t out of control, the market could begin to recover.

Even with the market outlook looking brighter, traders are cautioned against chasing the price of tokens, particularly in strong uptrends. Entering positions on price dips is a safer strategy for traders looking to minimize potential losses considering a market recovery is not yet confirmed.

*Materials on Bitazza Weekly Newsletter are intended to be used and must be used for informational purposes only. The views, information, or opinions expressed are solely those of the individuals involved and do not necessarily represent those of Bitazza and its employees. The information contained herein is not intended to be a source of advice or financial analysis with respect to the material presented, and the information and/or documents contained in this website do not constitute investment advice.

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