2023 Current Crypto Market Report

DISCLAIMER: This Market Report was prepared by a third-party contractor(s) and does not represent the analysis or opinions of Tacen or its affiliates. It is provided solely for informational purposes and should not be interpreted as individual investment advice, legal, accounting or tax guidance, or a recommendation to buy, sell, or hold any digital asset. The digital assets and their underlying facts and figures are subject to high levels of volatility.

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Bitcoin (BTC)

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Investors can remain optimistic about Bitcoin's long-term potential despite a temporary dip from its peak of $69k in 2021. The weekly logarithmic chart reveals a consistent upward trend, while the 3-day chart suggests a stable price range between $25k and $33k. Additionally, the 12-hour chart indicates a potential significant shift due to the observed "descending wedge."

Recent market activity has brought Bitcoin's price to the lower end of its range, with the upper end remaining untested. Although there has been a slight increase in volatility on shorter timeframes, orderbook liquidity has remained steady throughout.

What does this mean for traders?

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Traders are currently facing some challenges, particularly those who engage in intraday trading. Fast-moving market conditions and frequent reversals are leading to "whipsaws" or "Darth Maul candles," making it increasingly difficult to make intraday entries. However, swing traders are finding more predictability in the market. By zooming out on the chart, clear levels can be seen, which are being respected and providing clear invalidations for swing trades lasting days to weeks or even longer.

One critical level that Bitcoin must maintain is $25k. Failure to sustain this level makes it less certain that the price will not drop further, which increases the likelihood of sellers stepping in for a "bearish retest" around $25k. Nevertheless, if the market holds, all eyes will be on the range high.

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ETHEREUM (ETH)

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Although Ethereum usually moves in tandem with Bitcoin's price, its behavior on lower timeframes is markedly different. While the weekly logarithmic chart indicates a consistent uptrend, this is where the similarities end. A closer look at the 3-day chart reveals signs of bullish exhaustion after surpassing the $2,035 mark. As a result, Ethereum has been on a downward trend. However, it is reassuring for ETH bulls that it has managed to maintain its crucial support level of $1700. Lastly, on the 12-hour chart, there is evidence of a local uptrend that bulls are hopeful will continue.

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US Dollar Index (DXY)

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Recently, the US Dollar currency index has been rather uneventful, with little change occurring in the past few months. It has consistently bounced off of its key support zone of 100 to 103, which has been a crucial level of importance since the 90s. The rule of thumb remains the same – when the dollar is bullish, risk assets are bearish, and vice versa. If the dollar continues its slow upward trend, it could potentially cause a cooling of many markets, including BTC and ETH. However, if the DXY loses its footing around 100, it could be a signal for the next leg up on crypto, equities, and other assets.

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