Dec 15, 2022
Zignaly Providers Monthly Recap (November)
TL;DR
News: November 2022 has been a month that will go down in the history of crypto due to FTX blowing up, taking down with it several billions of dollars from its investors and customers.
Market update: In terms of price action, the market keeps making new lows (BTC) or just keeps moving within a very volatile sideway (ETH/Alts) that has been going on for as long as six months in some cases.
Providers
BTC Futures
While our Provider has certainly performed better than the market itself (buy&hold) since the beginning of the bear market about one year ago, for a very long time now it has been playing defense and is currently managing a drawdown, which however is more similar to an account balance “sideways” as you can see from the chart below.
The overall sentiment in crypto seems to be at all times low following the FTX fiasco, but as Thomas Fuller would put it “the night is always darkest before the dawn”, in fact often market bottoms tend to correspond with such emotional extremes.
The price action in BTC (hence in crypto) keeps making new lows following the down-trend started exactly one year ago and registering a new record low for this current bear market equivalent to -77.65%.
Not saying that history is going to repeat itself, but interestingly enough the low of the 2018 bear market was registered exactly one year after the high of 2017. In any case for that to happen BTC will have to break the strong resistance currently established around the $18,000 mark, so we will see if that happens before new lows are established again.
ETH Futures
The ETH Futures Provider, which as we have repeatedly mentioned is by design more volatile if compared to our other Providers, has pretty much been sideways since its inception at this point, which counter-intuitively is a very good result considering that the six month long sideways that ETH has been going through at this point is the worst possible scenario for this Provider.
In fact, while BTC has been registering new lows, ETH has gone nowhere since at least this past June, as you can clearly see from the screenshot below.
We will only have a real clue about the direction the market wants to go next when this sideways will finally be broken, until then we will take our trades and keep managing our risk. As usual, patience is the key here.
Conclusions
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