WEEKLY CRYPTO MARKET REPORT – 19th FEB ’23

 

What is the general sentiment for Crypto?

The sentiment towards the cryptocurrency market turns to GREED. Compared to last week, the Fear & Greed Index has changed from “50” to “58”. 

 

SOPR

Another data to evaluate the sentiment of the general public would be to look at Spent Output Profit Ratio (SOPR). What is SOPR? In layman terms, it indicates if people have sold their BTC at a profit or if they sold at a loss. An SOPR value above 1 indicates that profit booking dominated loss booking and below 1 indicates that loss booking dominated profit booking. A value of 1 indicates that the coins were sold at their purchase price. Adjusted SOPR filters out transactions that are younger than 1 hour, thus, clearing out noise from the metric.

aSOPR for this week stands at 1 which means the coins were sold at their purchase price

 

Is This The End of the Bear Market?

 

CVDD-TERMINAL PRICE CHART INDICATOR

CVDD –  tracks the cumulative sum of this value-time destruction as coins move from old hands into new hands as a ratio of the market age. It is then multiplied by 6 million, which is a somewhat arbitrary number as it is not linked to any relevant Bitcoin data. The result is that it has historically correctly forecasted the major lows of Bitcoins price with good accuracy. 

 

Currently the Bitcoin CVDD stands at $17,641 which has broken out of the descending trendline. Bitcoin is expected to move upward for coming weeks

 

MVRV Z-Score

The MVRV Z-score has historically been very effective in identifying periods where market value is moving unusually high above realized value. These periods are highlighted by the z-score (red line) entering the pink box and indicating the top of market cycles. It has been able to pick the market high of each cycle within two weeks.

It also shows when market value is far below realized value, highlighted by z-score entering the green box. Buying Bitcoin during these periods has historically produced outsized returns.

 

Historically the cycle turns once the Z-Score comes out of the green zone. Bitcoin is expected to move upwards for the coming weeks

 

Overall Market Performance

Dow Jones

The Dow Jones Industrial Average is trading in a tight range which could lead to a sharp move. The next resistance is expected at 34,500 and immediate support is expected at 33,000 levels.

 

Gold

Gold corrected by -1.3% in the last week. The next resistance is expected at $1900 and immediate support is expected at $1800

 

BTC/DXY

BTC/DXY has reached resistance levels and is expected to breakout. Bitcoin price support is expected at $21,350 and resistance is expected at $24,300

 

ETH/BTC

ETH/BTC is trading within the tight range. An immediate support is expected at 0.066 and the next resistance is expected at $0.077 levels.

 

Pick of the Week – $AUDIO

 

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