Crypto Market Pulse - May 7, 2024

Author's Note:

Thank you for your continued readership of our newsletter, which provides weekly updates and an in-depth analysis of the crypto market landscape. In our ongoing commitment to deliver the most insightful content, we are pleased to announce the rebranding of our weekly publication to "Crypto Market Pulse."

This adjustment reflects our dedication to delivering meticulously researched and technically informed market analysis, focusing specifically on relevant trading trends within crypto. Our mission remains unchanged as we strive to provide unparalleled insights and data-driven perspectives on the most pertinent developments shaping the cryptocurrency market.

LAST WEEK RECAP: May 1-6, 2024

• The U.S. Fed kept the rate steady due to the lack of further progress on inflation, but Powell commented that the Fed’s next move was “unlikely” to be a rate hike.
• U.S. nonfarm payrolls increased by 175,000 in April, well below the estimated 240,000. The unemployment rate rose to 3.9% vs. the estimated 3.8%.
• Former Binance CEO CZ was sentenced to four months in prison.
• Hong Kong BTC and ETH ETF started trading but only recorded a $12M volume on day 1.
• Friend.tech launches V2 and announced airdrop.
• The block will use 10% of the Bitcoin product profit to buy Bitcoin.
• Grayscale GBTC recorded its first net inflow after conversion to spot ETF.

LEGACY MARKETS – DXY

DXY is still at the top of the range but has shown some signs of weakness. The market is waiting to see if the weakness continues and DXY falls back deeper into lower price levels. This would be the ideal scenario for crypto.

LEGACY MARKETS – VIX

VIX is also following the ideal path so far by fully breaking back into the previous 12-14 range. If it has another lengthy period in this range, together with DXY breaking down, expect the crypto market uptrend to resume.

BTC WEEKLY VIEW

BTC has been consolidating on its previous ATH since mid-March. With almost two months of consolidation and the initial signals we’re getting from the VIX and DXY, BTC might continue to trend sooner rather than later.

ETH WEEKLY VIEW

ETH has a May 23rd deadline for possible ETF approvals. However, all these will most likely be pushed back to July, which explains the sluggish price action in ETH.

ETH/BTC

After last week's market movement, ETH/BTC fell completely flat and reversed the initial up move. With the final deadline for May being on the 23rd before further delays, it will be interesting to see how sensitive ETH/BTC trades on ETF delay news.

TOTAL3 USD MARKET STRENGTH

TOTAL3 has been building new price structures, and for now, it seems the lows will be in after the big liquidation in April.

TOTAL3 BTC MARKET STRENGTH

ALT/BTC is looking a lot better than ETH/BTC. With it now almost fully out of the shorter-term downtrend, we might see some altcoins trend if this continues.

SUMMARY

• ALT/BTC ratios almost breaking out of their mid-term downtrend. Expect a lot of altcoins to start trending again sooner rather than later.
• ETH/BTC has been unable to trend upwards consecutively for multiple days. It's important to observe price reaction, which is likely going into new ETF delay announcements.
  

DISCLAIMER:

The information in this report is for information purposes only and is not to be construed as investment or financial advice. It is not a solicitation or recommendation to buy or sell digital assets or other financial products.

Kairon Labs Traders prepare this post: Joshua van de Kerckhove and Patrick Li.

Edited by: Marianne Dasal and Carla Ramos