Crypto Market Update 03/30/2023

S&P500 

After dipping below the MA200W, SPY has bounced back and established a new higher low. It appears that the market is currently in an accumulation and recovery phase, indicating a potential desire to hold and regain strength. There may not be much to comment on at this point, as the market's behavior seems to align with expectations for this type of market. However, it will be worth monitoring how the market progresses in the coming weeks to see if this recovery trend continues or if a new pattern emerges.

BTC

Following a successful breakout of the ascending channel, Bitcoin's price action has returned to the channel's upper limit and is currently being held there to potentially continue its upward trend. Despite this positive movement, the market is exhibiting a sluggish pace, which is normal during this phase of the cycle. Consequently, each movement may require a significant amount of time to develop, so it is important to monitor the market closely to gauge its progression.

Upon examining lower time frames, a bull flag pattern is observed, which has yet to be broken. Previous attempts to breach this level have resulted in retracements. However, if the bull flag is finally broken, the price is likely to advance toward the next major level, represented by the orange box. Failure to break this level will probably result in a return to the lower end of the bull flag pattern.

BTC Dominance

BTC Dominance has reached the upper limit of the 2021 channel, a level that has led to retracements and potential alt seasons in the last three occurrences. However, the current situation suggests that dominance is gathering more momentum, and a breakout from this level cannot be ruled out. If this happens, the maximum level will reach the new orange box, causing a drop in altcoins, at least versus BTC.

ETH

ETH remains within the upper bounds of the ascending channel, which is a positive sign for its performance. However, a breakout from this channel would be preferable to provide more momentum to ETH. Unfortunately, this seems unlikely to occur unless there is a decline in BTC Dominance. For now, the channel continues to define the range of ETH's movements.

CONCLUSION

Despite its sluggish pace, the market is retaining its bullish momentum.  However, in order to maintain these levels, it is crucial to see more buying activity. 

In an accumulation market, such a scenario often leads to rapid movements that indicate liquidity hunting. For now, there is not much to report until the market reaches significant levels, either up or down.