Weekly Crypto Market Update - October 31, 2023

LAST WEEK RECAP:

• U.S. GDP grew 4.9% YoY in 3rd quarter, better than the 4.7% estimated.
• U.S. core PCE increased 3.7% YoY in September, consistent with estimates and down 0.1% from August.
• ECB paused the rate hike for the first time in 15 months.
• Although BlackRock’s BTC ETF has been on the DTCC (Depository Trust & Clearing Corp.) site since August, it was widely noticed last Monday. The temporary removal on Tuesday caused a volatile move in the $BTC price.
• Ethereum core developers confirmed no Dencun upgrade in 2023.
• dYdX Chain officially launched on the main net.
• Arbitrum announced Orbit is now ready for the main net.
• Binance announced Memecoin as the 39th project on Launchpool.

LEGACY MARKETS – DXY

DXY is still consolidating on the new range. There was some weakness last week, but it got erased rather quickly. However, with equities reaching critical levels for bulls, it could indicate further weakness in DXY this week which should give an upside in equities again. With crypto's relative strength lately and strength in equities should accelerate it further upwards.

LEGACY MARKETS – VIX

VIX has still kept elevated levels since the Middle East escalations. VIX above 21 is always something to keep an eye on usually market correlation starts to increase. But as we’ve seen crypto has been trading in its own world since the ETF narrative has been heating up.

BTC WEEKLY VIEW

BTC had a proper weekly candle. At this point, there are likely 2 scenarios: either it re-tests the red zone, or we get a small consolidation up here and make people who are not positioned, chase it further upwards. The first target to the upside would be a 40-45k zone.

ETH WEEKLY VIEW

ETH is at the moment still relatively weaker against BTC. The first spot is still getting into the 2K area.

ETH/BTC

ETH/BTC has been weak on the BTC rally. The ratio now is at a critical point where it should stabilize and find some good support. If it fails to hold, ETH will likely see some serious weakness relative to BTC.

TOTAL3 USD MARKET STRENGTH

TOTAL3 slowly came of support. There is still some good upside until it hits the first resistance zone, so the likeliness of further upside is high. The alt market at the moment is led by some clear outperformers (SOL, INJ..)

TOTAL3 BTC MARKET STRENGTH

ALT/BTC, as mentioned, is still weak same as ETH/BTC. We’d expect with this breaking under the lows, that it likely goes down to the green zone before finding decent support. Of course, they will be outperforming altcoins but they will be the minority.

SUMMARY

• BTC closing back in the 2021 range convincingly opens the doors for a lot of upside. More importantly, we now have a price level (30k support) that should hold in any circumstance for a proper bull market.
• ALT/BTC ratios are weak likely till BTC consolidates again for longer. At the moment, we’re still in a strong short/mid-term trend. This could push to 40-45k in the coming weeks.
• With Gold clearing back above $2K, BTC will again see mixed correlation if it trades like a tech stock or like Gold.

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