LAST WEEK RECAP:
BTC briefly fell below $50K amid a market crash last Monday, with total crypto market liquidation reaching over $1B, according to Coinglass.
Bank of Japan Deputy Governor Shinichi Uchida said the BoJ won't raise interest rates when financial markets are unstable.
U.S. weekly jobless claims fall to 233K, less than 240K expected, which shows a positive sign for the labor market and helped market recovery.
U.S. judge fined Ripple $125 million in penalty for improperly selling XRP tokens.
U.S. judge approved the $12.7 billion settlement between FTX and CFTC.
Grayscale launches new crypto investment trusts for SUI and TAO.
LEGACY MARKETS – DXY
DXY dropped to near-range lows after last week's events. From the macro perspective, it’s still within the range of 100-106.
LEGACY MARKETS – VIX
VIX had a complete blowout due to the convergence of Middle Eastern tension and fears of FED cutting too late. At this point it's back trading near 21 levels. With all the uncertainty currently, it could range a while in the 21 area, creating a ranging environment for most assets. However, if it bleeds completely back down to the lows, there's a good chance many assets will pick right back up.
BTC WEEKLY VIEW
BTC saw a large capitulation into 50k. The weekly mostly recovered but failed to convincingly close over 59k, which technically means that the new range is still 52-59k. However, after such large capitulation events, it could be that we chop a while longer, right under 59k. If 59k gets reclaimed, it opens the door back open to ATHs.
ETH WEEKLY VIEW
ETH seems to be repeating the post-BTC ETF launch price action. With grayscale outflows slowly decreasing, it makes sense for the ETF flows to slowly start affecting the PA more positively. ETH/BTC also dropped into major support.
ETH/BTC
ETH/BTC saw yet another low. However, this time, it tagged multi-year support, so the probability of reversal here should be quite high.
TOTAL3 USD MARKET STRENGTH
Alts are still mostly building base. Even with the large drop, a lot of them are still in larger ranges.
TOTAL3 BTC MARKET STRENGTH
TOTAL3/BTC surprisingly didn’t make new lows on the large BTC drop and is seemingly rotating against BTC. Given that BTC will likely range for a while, this opens up a lot of upside on all ALT/BTC pairings.
SUMMARY
ALT/BTC ratios stayed stable during the large drop, indicating underlying strength in the altcoin sector against BTC.
DISCLAIMER:
The information in this report is for information purposes only and is not to be construed as investment or financial advice. All information contained herein is not a solicitation or recommendation to buy or sell digital assets or other financial products.
This post was prepared by Kairon Labs Trader Patrick Li and Joshua Van de Kerckhove
Edited by: Marianne Dasal
