Zignaly Providers Monthly Recap (March)
TL;DR
March has been characterized by volatile sideways price action in BTC with a more accentuated downtrend for the Altcoins and Ethereum
BTC has been sending contrasting signals but I will discuss what seems to be the most probable outlook so far
Intro
Last month I mentioned BTC re-testing the previous all-time high as a support level and a weekly/monthly close above such level being a sign of potential upside continuation.
While the previous all-time high has so far not been able to successfully act as support, the BTC price has been hoovering around its level and both the weekly and the monthly close have happened clearly above it.
Right now BTC seems to be in the process of testing the previous all-time high monthly close as support, so we can say it is currently moving within this channel between the previous all-time high monthly close and the all-time high itself.
Although the situation remains uncertain until BTC finds its feet at the new all-time high, I would say that the probabilities are currently still skewed towards the upside. However, this might be subject to change if a weekly close happens below the previous all-time high monthly close.
I would say that the probabilities are currently still skewed towards the upside. However, this might be subject to change.
The rest of the market is pretty much following what BTC does, although the altcoins and Ethereum have been looking weaker compared to BTC and with more marked development on the downside.
Providers
BTC Futures
After February’s large profit, the Provider has been navigating these choppy markets taking some losses while trading on both sides, and is currently holding a small short position, which is more of a hedge in case the market dumps further.
Volatile sideways markets such as the one we are currently experiencing are the worst for this system, which however is still managing to limit potential losses and is currently sitting at -12.05% for the month, not a big deal, especially after last month's +127%.
As mentioned, so far it looks like this is mostly a consolidation period after a strong up-move, after which the market might continue in its previous direction. Either way we will see where it wants to go and act accordingly.
ETH Futures
Similar situation for the ETH Futures Provider which has been able to limit the losses well sitting at just -6.35% for the month and it is currently in a short position.
Not much to say about this Provider, we will just wait for the next directional move to see it perform.
Altcoins Spot Provider
After three profitable months in a row, even the Altcoins Spot Provider is “taking a break” and registering a small drawdown for the month, currently at -6.34%.
In its many years of activity, this Provider has become renowned for its remarkable ability to reap profits while limiting the risk extremely well even in a volatile market such as the altcoins, and it keeps doing its job very well indeed.
As this is a spot-only Provider it cannot hold short positions, but it is currently (almost) flat while waiting for this correction to end, either with a continuation of the previous up-move or with further development on the downside.
Conclusions
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