Weekly Market Recap (from Jan 16th to Jan 22nd)

Sypool Protocol
3 min readJan 24, 2024

BTC ETF traded for 8 days. Except for GBTC, the remaining 10 BTC ETFs are experiencing capital inflows. Most of the funds flowing out of GBTC have flowed into lower-fee BTC ETFs. But for the market, although the long-term bullish trend has not been destroyed, the news has brought about a clear correction. Crypto markets entered a callback period.

The next important event is the arrival of the BTC halving, and the Federal Reserve begin to change their monetary policy. The former will be in April, and the latter will appear as soon as the FOMC in March or May based on the current interest rate market. Until then, the market will pay for the excessive pricing of BTC ETFs.

BTC

BTC (1D)

BTC continued to fall last week, falling below the lower rail(41000) of the range yesterday, and was accompanied by obvious trading volume. Judging from the decline process, the bulls did not strengthen after approaching 41000 but continued to fall after the fluctuation. The bears are stronger than the bulls. Due to the previous rapid rise, there is no stable support between 41000 and 38000.

From an indicator perspective, although the ME indicator maintains a bullish signal, the purple wavy area is narrowing. On the WTA indicator, whales took profits after BTC reached 49000.

To sum up, we believe that BTC will most likely continue to fall this week and hit the given support level of 38000. We maintain last week’s resistance level of 48000 and support level of 38000.

ETH

ETH (1D)

After reaching equilibrium at the ETH/BTC exchange rate, ETH lost power again. ETH has performed worse than BTC over the last week, with bulls barely able to rally at all. You see a man walking to the edge of a cliff and jumping off. After Monday’s decline, ETH is back in the range that started in December.

From an indicator point of view, the purple wavy area of the ME indicator narrows. Although the bullish trend is maintained, the strength of the bears has increased. The WTA indicator is the same as BTC. The whales have stopped profiting after the approval of the BTC ETF, and retail investors may more caused the recent decline.

To sum up, ETH may continue to fall this week. But ETH is already in the previous zone compared to BTC, so there is little room for continued decline.

Disclaimer: Nothing in the article constitutes investment advice. The article objectively expounded the market situation and should not be construed as an offer to sell or an invitation to buy any cryptocurrencies.

Any decisions based on the information contained in the article are your sole responsibility. Any investments made or to be made shall be with your independent analyses based on your financial situation and objectives.

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