Weekly Crypto Market Update - November 27, 2023

LAST WEEK RECAP:

• Binance and CEO plead guilty to federal charges in $4B resolution, CZ resigns as CEO
• SEC charges Kraken for operating as an unregistered securities exchange, broker, dealer, and clearing agency
• Sam Altman returns to OpenAI as CEO with a new board
• Bullish, a crypto exchange led by former New York Stock Exchange chairman Tom Farley, acquires 100% stake in CoinDesk in all-cash deal according to Bloomberg
• DEX KyberSwap hacked for $48 million
• Blast, a new Ethereum L2 developed by the Blur founder Pacman, has attracted over $400M in 3 days
• Bittrex Global to wind down operations
• HTX and Heco bridge hacked for over $100M

LEGACY MARKETS – DXY

DXY is back in the 102-106. From a technical viewpoint, the market dropped under 102 around May and now runs above the range at 106. This usually leads to more consolidation (time frame of months), which bodes well for all markets.

LEGACY MARKETS – VIX

VIX is still bleeding lower with DXY being stuck within the large range. This should allow markets to move decorrelated from each other or with larger time differences.

BTC WEEKLY VIEW

BTC has been slowly grinding upwards since 34k. At this point, entering the market is tricky:

1. If the market corrects, a good area to enter would be in the 32-33k zone. This would also give very nice entries again on altcoins.
2. If BTC surges beyond 40k, correction is likely, particularly with the potential impact of an ETF sell-the-news event.

ETH WEEKLY VIEW

ETH is also still building on top of the 2k level. The entire market, however, still seems to be waiting for BTC to get more volatile after the compression it has seen in the last couple of weeks.

ETH/BTC

ETH/BTC has been getting stronger as predicted every time BTC is compressed. So we wouldn’t call it real relative strength yet. BTC has to get more volatile. You want to see ETH/BTC stable or getting stronger—that’s the moment ETH will start leading.

TOTAL3 USD MARKET STRENGTH

TOTAL3 is still in our expected resistance zone. Together with the BTC compression, a short-term flush could happen if BTC gives that retrace into 32-33k. Afterwards, this range likely resolves upwards.

TOTAL3 BTC MARKET STRENGTH

ALT/BTC is still in the same range and has the same story as ETH/BTC. However, there have been select outliers throughout this run.

SUMMARY

• CZ steps down as Binance CEO. Mentions focus on DEFI and more on-chain activity. This could lead to money flowing back into the BNB chain and is definitely something to keep on the radar.
• BTC compression is likely to resolve soon, which should give good opportunities to reposition in the market.
• AI sector stays strong with the OpenAI debacle headlining all week.

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