31 May 2023
Crypto Market Update 05/31/2023
S&P500
SPY is currently at a resistance point, but we can observe the formation of an ascending channel grinding against that resistance. Although this pattern generally indicates a bullish trend, there is no evidence to determine the next direction of the trend.
BTC
BTC has recently rebounded off the MA 200W (200-week moving average), and now we are approaching a potential golden cross between the MA 200W and the MA 20W (purple and pink lines). This is an extremely bullish signal that could confirm the end of the bear market and the beginning of an accumulation phase. However, it's important to note that this process will likely take some time, and we might experience a slow-moving market for several months. Therefore, there isn't much else to say at the moment except that everything is progressing gradually as expected.
BTC Dominance
Dominance in the market continues to exhibit bearish divergences at resistance levels. This suggests that the most likely scenario is a decline to lower levels, which could potentially provide momentum to altcoins. However, it's important to note that this process may take a considerable amount of time to develop.
ETH
ETH has found support at the MA20W (20-week moving average) and is currently residing in the upper section of the ascending channel. This indicates a more bullish sentiment rather than bearish. However, it's crucial to remember that ETH's movement is often influenced by BTC's actions. Therefore, any significant movement in ETH is likely to occur only after BTC sets a precedent.
CONCLUSION
In accumulation markets, we often experience a lack of volatility, resulting in limited new information in our market updates as months pass by. As we consistently emphasize, accumulation markets may not be the most thrilling, but they are crucial for laying the groundwork for future growth and prosperity. These periods are akin to planting seeds that will eventually bear fruit in the future.
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