Weekly Crypto Market Update - January 22, 2024

LAST WEEK RECAP:

• Ethereum's Dencun upgrade launched on Goerli testnet after initial delays.
• MetaMask launched staking service to allow users to run Ethereum node.
• Binance’s new launchpool project Manta Network experienced a 'DDoS' attack during exchange listing.
• dYdX surpassed Uniswap as the largest DEX in volume.
• Blast, launched by the founder of Blur, announced testnet is live.

LEGACY MARKETS – DXY

DXY is still within the larger range 106-100. As mentioned, it's currently expected to continue building more price structures within this range. It did see some upward movement within the range. This can put some pressure on stocks/crypto especially as indexes are trading near all-time highs.

LEGACY MARKETS – VIX

VIX is still in a slumber for now. This will keep correlations low between asset classes.

BTC WEEKLY VIEW

BTC is still at the top of the macro range between 45-30k. From a technical point of view, it seems more and more likely that BTC will reach mid 30’s at this rate. The longer BTC keeps ranging under resistance, the more altcoins will bleed in anticipation of increased volatility on BTC.

ETH WEEKLY VIEW

ETH/BTC has been stale ever since the initial ETF approval rotation. With BTC looking more and more like it's breaking down at the top of the range, it would be optimal for ETH/BTC to continue its trend and push through. This could give enough relative strength for ETH/USD to rally towards 2.8-3.2k.

ETH/BTC

ETH/BTC should pick up the trend soon, or else it would become more and more likely to bleed out again the entire rotation from the ETF approval.

TOTAL3 USD MARKET STRENGTH

Alts have retraced quite a bit. But from a macro perspective, it’s still totally fine with price building more and more structure above the 2023 resistance. It will likely tap into that resistance (now support red zone) when/if BTC taps into the mid-30s. This would likely be one of the last good macro entry points into altcoins for the typical crypto cycle.

TOTAL3 BTC MARKET STRENGTH

As mentioned last week, if ALT/BTC would stay in range and ETH stalls, it would likely not be good for alts. A lot of them are down quite a bit with no real show of strength at the moment. This will likely stay the same until we get that volatility expansion on BTC.

SUMMARY

• Market is in limbo until it sees BTC breaking down/up to lower or higher levels or ETH/BTC picking up more upside momentum.
  

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 is prepared by Kairon Labs Traders: Joshua van de Kerckhove, and Patrick Li

Edited by: Marianne Dasal