Crypto Market Update 05/16/2023

S&P500 

We haven't made any progress last few weeks, as SPY is exactly at the same level it was during our last market update. The market is currently range-bound near resistance, and there isn't much new to report at this moment.

Considering the prolonged range at the resistance level, the likelihood of losing momentum and experiencing a retracement to lower levels increases.

BTC

Regarding BTC, it has been consolidating within a potential bull flag pattern, finding support from the 200-week moving average (MA200W), and now the 20-week moving average (MA20W) is converging at the same point. This convergence should provide a strong support level for BTC, enabling it to maintain its bullish momentum, albeit at a slow pace.

If BTC breaks below the MA20W, it could mark the end of the bullish trend and trigger a bearish momentum that might persist for months. Conversely, if the bullish momentum continues, the next target would be the upper boundary of the orange box, signaling a potential upward move.

BTC Dominance

BTC Dominance is currently consolidating near resistance, accompanied by multiple bearish divergences. Historically, when BTC Dominance reaches this point, it tends to decline, as observed over the past two years. This suggests the possibility of a decrease in BTC Dominance, potentially leading to increased market share for altcoins and a shift in the market.

ETH

ETH has once again found itself within the confines of an ascending channel, with the 50% level and the approaching MA20W providing support. As per the usual pattern, ETH tends to follow BTC, so there isn't much new to add at this point. The current setup suggests that ETH's price movement will largely depend on BTC's performance in the near future.

CONCLUSION

The current market conditions are marked by a period of low volatility, leaving investors with limited options and a sense of frustration. 

The lack of significant price movement makes it a waiting game for many, hoping for a breakout from the range and the emergence of a noticeable upward or downward momentum. 

Patience is key during such times, as market dynamics can shift unexpectedly, offering new opportunities for investors.