Weekly Crypto Market Update - October 23, 2023

LAST WEEK RECAP:

• False spot BTC ETF news triggered BTC price to touch $30K.
• SEC dropped civil charges against Ripple executives Christian Larsen and Brad Garlinghouse.
• Coinbase started offering perpetual futures to non-US customers.
• Uniswap Labs started charging a 0.15% fee on some token swaps through its interface.
• Tesla kept BTC holding steady in Q3 2023.

LEGACY MARKETS – DXY

DXY is still consolidating on top of the new range. For now, it’s a wait-and-see scenario, if it gives a deeper pullback or not. A deeper pullback would likely bottom out the harsh retrace in equities and accelerate crypto further upwards.

LEGACY MARKETS – VIX

VIX has still kept elevated levels since the Middle East escalations. With levels above 21, it’s extremely important to keep a close eye on it. The higher VIX goes the more markets start to correlate to each other.

BTC WEEKLY VIEW

As mentioned last week, BTC held a Sunday rally for the first time in a while. It also finally broke through 28.6k during the week, which accelerated the price instantly to 30k. With BTC back at yearly highs, we might see an explosive Q4. If BTC clears yearly highs, we likely rally toward the 40-45k zone.

ETH WEEKLY VIEW

ETH is at the moment still relatively weaker against BTC. However, it has also rallied from the long-term uptrend and ETH/BTC is deep into its support now. For ETH to rally towards the 3k area, we need to see prices clear the 2k area first.

ETH/BTC

ETH/BTC has seen quite a free fall on recent BTC strength. With ETH being deep into the 2 Year support area it’s likely that it’ll compress in this area on further BTC strength.

TOTAL3 USD MARKET STRENGTH

TOTAL3 as mentioned last week would likely rally back to resistance if BTC strength holds. With BTC strength holding TOTAL3 also started its rally upward, mainly led by SOL and a handful of other relative outperformers. Getting back to the red area would be a ±30% increase in TOTAL3.

TOTAL3 BTC MARKET STRENGTH

ALT/BTC is still weak and with BTC dominating we either compress into a smaller range in this area or fall further towards the green area. There are some outperformers relative to BTC but if BTC clears the yearly highs the momentum it would generate will likely be too strong for any altcoin to keep up relative strength.

SUMMARY

• BTC sustaining strong price action while equities have a red week. If equities can bottom this week, BTC's outperformance will most likely accelerate.
• Altcoins have a handful of outperformers but the main strength seems to be in BTC.
• Blackrock mentioned crypto as a potential “safe haven” in the news last 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: Rizza Carla Ramos