$BTC jumps towards $42.5K on Biden’s crypto executive order

​​$BTC 24 Hour High $42,627  / Low $38,654   |   $BTC +7.7% Past 24 hours; -4.8% Past 7 days

Good morning. The digital assets market bounced back after Biden signed the first-ever executive order on digital assets. It is viewed as a positive approach and a regulatory opportunity – not only does the executive order acknowledge crypto’s importance, it also directs the Fed to analyze and potentially develop its own digital dollar. Other key priorities include instructing the Treasury Department to create guidelines for U.S. citizens trading and using crypto assets while staving off fraudulent behavior from market participants.

$BTC also reacted to the executive order well and skyrocketed towards $42,500 before encountering resistance from the downward-trending resistance line. Given yesterday’s aggressive intraday move, we expect neutral to bearish price action today. If we look at recent sudden rallies similar to yesterday’s, they are usually followed by a period of price consolidation, which prices tend to retrace after running out of bullish momentum. For this reason, we need to keep an eye on the main support at $41,700 today because if this fails we would expect to see $40,000 revisited fairly quickly. That said, the desk view turns decidedly more bullish if $BTC moves up towards $45,500 in the near term. However, the upside hurdle at that level is considerably strong to break.

As expected, $ETH underperformed $BTC during the rally yesterday. The Fibonacci retracements laid out for the impulsive move since February 24 remains to be a useful guide to $ETH’s support and resistance levels in the short term. Unless $ETH breaches $3,050, our view remains neutral. If price continues to be squeezed into the corner of the technical triangle forming on the chart, $ETH may retest the $2,400 zone, though. 

ETH/BTC hit the lowest price level since October and broke the support line. Since the price closed above on the daily chart, there is a chance that it might hold. But looking at momentum indicators, there is indeed room for the rotation from $ETH into $BTC to continue. Bearish sentiment among options traders is also receding, evidenced by the decline in Put/Call ratio over the past month in both $BTC and $ETH.

Digital Assets Market

  • Total crypto market capitalization stands at $1.92T, +6.3% from yesterday
  • $BTC is -0.16% at time of writing; 24H liquidations and funding rates: 88.89M, -0.00856% average
  • $ETH is -0.1% at time of writing; 24H liquidations and funding rates: 49.40M, +0.01597% average
  • Stablecoins market dominance: USDT 43.42%; USDC 28.42%; BUSD 9.77%; UST 7.68%; DAI 5.09%

Alts and DeFi watch:

  • DeFi TVL: $204.52B (+2.59% over last 24h)
  • $SOL +6.5% in the last 24 hours, -12.6% in the past week
  • $SHIB +3.4% in the last 24 hours, -8.1% in the past week
  • $SAND +4.3% in the last 24 hours, -9.9% in the past week
  • $ENJ +3.6% in the last 24 hours, -10.0% in the past week

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OSL Trader View is contributed by Stefan von Haenisch & Ethan Fu.

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