Research Study
April 2023 Signals Report
A monthly breakdown of key market metrics that could be impacting price and investor sentiment
by Fidelity Digital Assets
May 22, 2023 • 22 min read
Digital assets are unique in that they not only generate traditional market signals, but also an entirely new set of signals based on on-chain data that can be viewed by anyone. In this report, we have collected what we think are the strongest signal indicators, grouped them by time horizon, and provided an overall assessment of the conditions for each time horizon.
As of the end of April 2023, the data suggests that bitcoin and ether are well-positioned in the short-term based on strong price momentum and various moving averages flipping from resistance to support. Multiple valuation indicators suggest that bitcoin still appears “cheap” in the medium-term. For Bitcoin, the fundamentals remain strong and continue to strengthen, while Ethereum is not far behind. With significant recent network upgrades, such as Shanghai/Capella, Ethereum could soon be flashing the same signals as Bitcoin.
Read more to learn what metrics we’re watching and what they may be telling us.
The information herein was prepared by Fidelity Digital Asset Services, LLC (“FDAS LLC”) and Fidelity Digital Assets, Ltd (“FDA LTD”). It is for informational purposes only and is not intended to constitute a recommendation, investment advice of any kind, or an offer to buy or sell any asset. Please perform your own research and consult a qualified advisor to see if digital assets are an appropriate investment option.
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Digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high-risk tolerance. Investors in digital assets could lose the entire value of their investment.
FDAS LLC and FDA Ltd do not provide tax, legal, investment, or accounting advice. This material is not intended to provide, and should not be relied on, for tax, legal, or accounting advice. Tax laws and regulations are complex and subject to change. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.
Some of this information is forward-looking and is subject to change. Past performance is no guarantee of future results. Investment results cannot be predicted or projected.
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