Therefore, by combining the two indicators, we believe if the weekly line breaks meaningfully above the middle band while the ATR indicator also reverses and breaks through – then it means that BTC will enter a strong upward phase, and it is advisable to enter the market at an appropriate time. Meanwhile, the ATR (average true range) indicator has emerged from a long-term downtrend but is still at a low point in the cycle, indicating that the market is still in consolidation. It seems that BTC is still in a post-rebound consolidation phase at the weekly level.
Judging from the DC indicator, the weekly line of BTC still goes below the middle band of $320,000 and it has been slightly fluctuating for over two weeks after the strong rebound. When prices break below the lower band, traders might interpret it as a sell trade. When prices break above the upper band, traders might interpret it as a buy trade. The indicator is helpful for determining buy and sell signals. When the prices are stable, the DCs will be relatively narrow, and when there is heavy price fluctuation, the indicator channels will be wider. The indicator consists of an upper band, a lower band and a middle band which usually represents the 20-day high, 20-day low and the average, respectively. We applied the DC (Donchian channel) indicator to assess the volatility of the market. Into a new quarter, BTC is also entering a new journey in terms of weekly and monthly lines. However, indicators – such as increased outflows from stablecoins and capital outflows from exchanges – show that this trend may not be sustainable.īTC rebounded after testing the support at $15,000 in Q1. This upward trend was driven by multiple factors, including tightened monetary policies and the bank crisis. Bitcoin (BTC) rose 72% and closed at $28,440, while Ethereum (ETH) rose 53% and closed at $1,827. The crypto market performed strongly in Q1 2023, with the total market cap growing by 49% to $1.19 trillion. In this article, we’ll review developments in the crypto market and macro environment and provide predictions for the next quarter.īitcoin – entering consolidation after a strong rebound
Despite heightened volatility in the crypto market, the first quarter of 2023 has ended on a good note.
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