$BTC on verge of breakout, trading above $41K

​​$BTC 24 Hour High $42,232 / Low $40,918   |   $BTC -1.5% Past 24 hours; +9.1% Past 7 days

Good morning. $BTC held above $41,000 despite a slight drop over the weekend. The No. 1 digital asset saw an uptick of 13% in the last seven days as the bulls managed to push the price steadily higher after testing previous resistance levels as support. However, if we start losing support levels, we should be aware of a potential ‘up the stairs, down the elevator’ action. $BTC broke the downward-trending resistance line at $41,500 but immediately found resistance at the local top from March 9 at $42,000. Interestingly enough, VPVR also shows this level as the most actively-traded level since August last year. If we look at the equity futures, risk-on sentiment seems to be returning across the broader markets. For this reason, we do expect bullish sentiment to return to fuel’s $BTC upwards momentum upon a solid breakthrough of $45,000.

$ETH has broken the downward-trending resistance line in place since December. However, after encountering resistance below $3,000, we are now looking to retest the resistance-turned-support at $2,775. The overall buying volume has improved but the bullish momentum needs to be sustainable. The current price level at $2,850 needs to hold, or we will likely revisit $2,775. If that fails too, $ETH is likely to be sent to the next main support area of $2,500. The desk’s view will turn more bullish in the short term if we manage to break $3,000 and continue a steady move to $3,280. Until then, the market continues to chop sideways, with neutral price action.

In was a vindication of sorts, the U.S. treasury department released three annual reports, covering terrorist financing, proliferation financing and money laundering. They highlighted that fiat currency and traditional networks are far more common in their use compared to digital assets. DeFi was named specifically, that could have huge potential with its “anonymity-enhancing technologies” where launderers can use it as part of its growing toolkit to evade sanctions and the law. Ransomware scams tied to crypto grew throughout the pandemic, with unsuspecting victims being lured, with outsized returns sharing their personal details with nefarious actors. To prevent further damages, victims tend to pay up in digital assets after the attack, which is both irreversible and pseudonymous.

Digital Assets Market

  • Total crypto market capitalization stands at $1.94T, -2.3% from yesterday
  • $BTC is +0.0% at time of writing; 24H liquidations and funding rates: 27.41M, +0.00689% average
  • $ETH is -0.0% at time of writing; 24H liquidations and funding rates: 24.19M, +0.00853% average
  • Stablecoins market dominance: USDT 43.19%; USDC 28.31%; BUSD 9.51%; UST 8.25%; DAI 5.09%

Alts and DeFi watch:

  • DeFi TVL: $209.20B (-1.02% over last 24h)
  • $SOL -3.37% in the last 24 hours, +12.46% in the past week
  • $SHIB -4.45% in the last 24 hours, +7.25% in the past week
  • $SAND -3.09% in the last 24 hours, +13.81% in the past week
  • $ENJ -3.23% in the last 24 hours, +11.79% in the past week

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OSL Trader View is contributed by Terrance Leung, Andrea Au & Ethan Fu.

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