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. Share: Download Article The information herein was prepared by Fidelity Digital Asset Services, LLC and Fidelity Digital Assets, Ltd. It is for informational purposes only and is not intended to constitute a recommendation, investment advice of any kind, or an offer or the solicitation of an offer to buy or sell securities or other assets. Please perform your own research and consult a qualified advisor to see if digital assets are an appropriate investment option. Custody and trading of digital assets provided by Fidelity Digital Asset Services, LLC, a New York State-chartered, limited liability trust company (NMLS ID 1773897) or Fidelity Digital Assets, Ltd. Fidelity Digital Assets, Ltd. is registered with the U.K. Financial Conduct Authority for certain cryptoasset activities under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. The Financial Ombudsman Service and the Financial Services Compensation Scheme do not apply to the cryptoasset activities carried on by Fidelity Digital Assets, Ltd. This information is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Persons accessing this information are required to inform themselves about and observe such restrictions. 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. Fidelity Digital Asset Services, LLC and Fidelity Digital Assets. 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. Fidelity Digital Assets and the Fidelity Digital Assets logo are service marks of FMR LLC. © 2023 FMR LLC. All rights reserved. 1089193.1.0