End to a Crypto bad month at a high note
“The crypto market ended in green on the last day of a bad month for crypto thus showing hopes for an up rise. The trading volume on the DeFi platforms increased to $100 Billion in January which was at a steady decline from May 2021. The oversold sentiment on the Bitcoin Chart remained intact.”
January 2022, the long bearish month for crypto uncertainty, speculations and FUD ended on a positive note as the market closed in green. The oldest and the largest crypto currency by market capitalization, Bitcoin is up by 3.75% and at the time of writing exchanging hands at $38,425. Ethereum is up 15% in the last 7 days and is trading at $2,740. The Asian trading has been low due to the Lunar New Year celebrations but the trading in general seems to have a return in volume.
$100 Billion Defi Volume
The total DeFi trading volume of $100 Billion was recorded in January which shows a positive sign as the trading volume on the DeFi platforms were steadily declining after the May 2021 crash. Bitcoin has been rising above the weeklong trading range as the oversold sentiments for Bitcoin remain intact. The oversold signal means that the investors believe that an asset is trading at lower price than it should be.
The immediate resistance is at the $40,000 mark which acted as a strong support before January 20, 2022. To break the bearish down trend Bitcoin has to gain momentum and break the $40K resistance and consolidate between $40K and $45K before building further momentum to the upside.
The fear and greed index shows that the fear in the market continues as the index signals “fear” at a value of 26. The fear sentiment is decreasing as it was in the range of “extreme fear” for almost the whole January 2022.