“The latest market rally shares some similarities with Q1-Q2 2019 as well – both periods were preceded by sharp price selloffs and a period of consolidation before strong moves higher. The catalyst for both: changing expectations around previous macro headwinds…If the crypto market were to follow its Q2 2019 playbook, it would imply this rally still has legs to it.” — Markets Setup for Rollercoaster Ride in 2023
The crypto market seems to be tracking its Q2 2019 playbook pretty well so far. BTC has pared its gains this week following its +40% surge in January, which is to be expected after such a sizable run up.ETH has also pulled back slightly, in line with its Q2 2019 trajectory.
The question now is will we see a short period of consolidation before another leg higher, or did the market get too ahead of itself given the lingering headwinds it still faces?
We dive into this question and provide our own take in our latest Markets report.