$BTC sees relief rally, finding crucial support at $39K

​​$BTC 24 Hour High $40,691 / Low $39,273  |   $BTC +1.6% Past 24 hours; -13.7% Past 7 days

Good morning. Following an aggressive move lower across the crypto industry over the past few weeks, we finally saw a brief relief bounce in the past 24 hours. However, market sentiments are still at the “extreme fear” level. As the US dollar gains strength, it may deter any significant uptrend in the crypto markets. The Paris Blockchain Week Summit is starting later today. Hopefully, it will continue the hype built on the Miami Bitcoin 2022 Conference and inject more positive news to wake the bulls up. 

$BTC also witnessed a relief rally and found support at $39,228, the 0.382 Fibonacci retracement level between the February-low and March-high. It is also where $BTC receives crucial support from multiple Fibonacci retracements over various timeframes. The VPVR also shows that $39,000 has been the most actively-traded area since early 2021, indicating strong support at this level. The funding rates are now stretched among shorts, with some exchanges offering rates as negative as -0.02%. These rates have been a relatively reliable indicator of local bottoms so far this year, so we can keen to see this level hold. Given the overall bullish momentum that has built so far, we don’t expect $BTC to slide to the next support of $37,500 if $BTC does move lower aggressively.

Like $BTC, $ETH found a respite, with $2,952 acting as support. It marks the 0.618 Fibonacci retracement level for the entire impulsive move since the January-Low. It’s worth noting that this price level has only started to become a crucial support this year – once in January and now while also acted as resistance on March 6. For investors looking for a bullish sign, we will need $ETH to punch through $3,200 in the short term. This will significantly reduce the likelihood for the No. 2 digital asset to dip towards $2,621, where a confluence of indicators meets.  

A recent NASDAQ survey found that close to 72% of financial advisers wanted to allocate more capital to crypto-based products should a spot ETF be approved. Interestingly, 86% of advisors already pre-allocated funds to crypto planned to increase allocation over the next 12 months, and none intended to lower or remove any allocation from their portfolio. 

Learn more from today’s Trader View video

Digital Assets Market

  • Total crypto market capitalization stands at $1.96T, +1.5% from yesterday
  • $BTC is -6.3% at time of writing; 24H liquidations and funding rates: 47.55M, -0.00046% average
  • $ETH is -7% at time of writing; 24H liquidations and funding rates: 21.78M, +0.00154% average 
  • Stablecoins market dominance: USDT 44.25%; USDC 26.99%; BUSD 9.46%; UST 9.03%; DAI 4.68%

Alts and DeFi watch:

  • DeFi TVL: $208.85B (-4.55% over last 24h)
  • $SOL +3.4% in the last 24 hours, +21.8% in the past week
  • $SHIB +21.6% in the last 24 hours, +2.5% in the past week
  • $SAND +3.2% in the last 24 hours, -19.5% in the past week
  • $ENJ +3.7% in the last 24 hours, -11.8% in the past week

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OSL Trader View is contributed by Hans-Stefan Vonhaenisch & Ethan Fu.

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