- Bitcoin and Ethereum have become very volatile this year as risky assets are sold.
- Tammy Da Costa, an analyst at DailyFX, shared how each token should be traded this year.
- That’s why Tesla CEO Elon Musk’s plans to buy Twitter could also boost Dogecoin.
In a recent interview with insider, DailyFX analyst Tammy Dakosta said volatile trading has so far defined the crypto market in 2022, and investors will stay the same for the rest of the year. He said he should expect that.
The two largest ciphers by market capitalization, Bitcoin (BTC) and Ethereum (ETH), have fallen to 28.3% and 40.5%, respectively, from the beginning of the year. Bitcoin was modified (or reduced by more than 10%) in a week on six separate occasions. The same is true for Ethereum. Both digital assets are 35% to 40% off the all-time highs set last fall.
According to Dakosta, his enthusiasm for high-risk assets like crypto is undermined by two major headwinds.
Investors have become less speculative as they aggressively tighten monetary policy to stop inflation. And the war broke out between Russia and Ukraine, raising concerns about a global economic slowdown.
But while these concerns are curbing cryptography, Dakosta pointed out that there is some silver lining for investors. Interest rates may be rising, but they are still close to the lowest ever. Ukraine was able to quickly raise money for war effort by using cryptocurrencies, a real-life use case that has attracted the attention of fast-growing assets. A class that may further promote recruitment.
What’s more, given how tech stocks and other risk assets in the U.S. have been ugly so far, Dacosta is encouraged that cryptos haven’t fallen any further and have fallen sharply from lows. increase.
“Despite the increased geopolitical risk, we have still seen some risk appetite,” Dakosta told insiders.
Dakosta continued: “Seeing lower war escalations and lower inflation could increase the desire for risk and support the crypto market.”
How to trade Bitcoin and Ethereum
Also, with a history of being influenced by technical factors such as support and resistance levels, trading Bitcoin and Ethereum is certainly dangerous but attractive.
That said, Dakosta shared the important level that Bitcoin and Ethereum are likely to bounce higher or lower.
According to Da Costa’s charts, Bitcoin will remain in a relatively narrow trading range for the rest of 2022.
Tokens currently trading at around $ 38,000 could actually rise nearly 40% from current levels to $ 53,000, but surpass $ 69,000 to hit a record high this year. Is difficult, crypto chart makers say. A notable major Fibonacci retracement level is $ 53,600, Da Costa said, adding that Mark is about where Bitcoin peaked in early December.
But before Bitcoin can rise to the lows of $ 50,000, it must first break through the $ 44,000 “major psychological level,” DaCosta said. Doing so would enable the $ 48,000 level, she added.
According to Dakosta, the downside of Bitcoin is that it is below $ 38,000 and cannot maintain the $ 32,000 level. According to analysts, she will hit a low of about $ 28,800 in 2021, but she believes Bitcoin will not exceed $ 22,000 in 2022.
Ethereum is also traded “very narrowly”, Dacosta said.
It stalled for about $ 3,000. Chartmakers said it was unlikely to set a new record this year, adding that they faced difficult prospects in the short term.
If Ethereum turns upwards, it will see it break through its highs of $ 3,581 in early April and then test the last hit of $ 3,900 in January, Dacosta said. Analysts added that the next destination would be $ 4,000.
The Ethereum bear scenario is to test the major Fibonacci levels of $ 2,800 and $ 2,400, Dacosta said. However, she said she was “slightly bullish” on Ethereum over Bitcoin in the long run as the blockchain network continues to evolve, unlike Bitcoin’s set-in-stone protocol.
Bitcoin and Ethereum may have risen significantly from current levels, but Dacosta’s pricing forecasts also show how dangerous space is still. In addition, the huge price target, which suggests that two tokens can double or triple, is “unrealistic” given how competitive the crypto space is. Dakosta said.
“Many other cryptocurrencies have been created and the blockchain continues to improve,” said Dakosta. “So I think it poses a threat to both Bitcoin and Ethereum.”
Two notable altcoins
In addition to Bitcoin and Ethereum, Dacosta said he is looking at two altcoins, Cardano (ADA) and Dogecoin (DOGE).
Regarding Cardano, Da Costa said: So I’m a bullish ADA. “
Dogecoin, a cryptocurrency created as a joke in 2013, was part of the meme stock enthusiast in early 2021. After a euphoric runaway, the token crashed 80% from the all-time high set in May last year. Cryptocurrencies peaked shortly before Dogecoin’s biggest fan Tesla and SpaceX CEO Elon Musk attended Saturday Night Live.
Musk is getting a lot of attention because he has publicly launched a campaign to keep Twitter private. No one is surprised. Dogecoin soared to 28% in early April. The news was reported, and token fans began to speculate that it could be incorporated into social media platforms, assuming Mask could get it. Dakosta considers it a worthwhile story to follow.
“He’s a very big driver of Dogecoin, so I think he has the potential to recover,” said Dakosta. “But it all depends on Twitter bids and what’s going on.”
Dogecoin surged by more than 8% early on Monday in reports that Musk is on track to trade with Twitter.