$BTC tumbles sharply. Cryptos have more room to drop

​​$BTC 24 Hour High $45,522 / Low $43,116   |   $BTC -4.5% Past 24 hours; -8.2% Past 7 days

Good morning. The digital asset markets tumbled after seeing the Federal Reserve’s comments and suffering from macroeconomic uncertainty. This pullback is not confined to the digital assets markets but rather a broader risk-off move across TradFi equities. Both digital assets and equities are likely to remain soft going into the weekend.

Over the past 24 hours, the bears have gained enough strength to attack, pushing $BTC down to $43,000. Indicators suggested the pullback that $BTC is experiencing is not over yet. Before we start to see any significant support, we maintain our target of short-term support at $42,500. The short-term Fibonacci extension for the current impulsive move put the 1.618 level clearly in our target area. Correlation to TradFi currently sits at 0.93, the highest correlation in some time. 

After reaching the first short-term support at $3,200, $ETH has some relief from the pullback finally. This price level is supported by the 50W MA and the 0.382 Fibonacci retracement levels between the November-high and January-low. The daily RSI also found support at the upward-trending support line that has been in place since late January. That said, we do expect $ETH to pull back further. The daily MACD has flashed a sell signal, the first one since March 6. The No. 2 digital asset will likely drop to $3,080 at least, where the 111D MA can be found. Just below that at $3,040, we have the 0.5 Fibonacci retracement level between the March 14-low and April 4-high. This point also marks the local top from March 3.

Crypto heavyweights, industry leaders and media congregated at Bitcoin 2022, one of the world’s biggest crypto conferences, featuring notable keynote speakers Strike CEO Jack Mallers and El Salvador President Nayib Bukele. A fireside chat with Galaxy Digital’s Mike Novogratz and famed investor Antony Pompliano is on the cards, along with Michael Saylor and Cathie Wood making an appearance at the four-day conference in Miami. Our Head of North America Business Development & Institutional Sales Jeffrey Howard will also speak on the ‘Compliance & Regulation’ panel on April 7, 1:30pm CST.

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Digital Assets Market

  • Total crypto market capitalization stands at $2.08T, -6.9% from yesterday
  • $BTC is +0.25% at time of writing; 24H liquidations and funding rates: 109.43M, +0.00647% average
  • $ETH is +0.32% at time of writing; 24H liquidations and funding rates: 83.66M, +0.00719% average 
  • Stablecoins market dominance: USDT 44.04%; USDC 27.13%; BUSD 9.47%; UST 8.94%; DAI 4.80%

Alts and DeFi watch:

  • DeFi TVL: $223.58B (-4.33% over last 24h)
  • $SOL -10.1% in the last 24 hours, -5.9% in the past week
  • $SHIB -8.2% in the last 24 hours, -11.2% in the past week
  • $SAND -10.2% in the last 24 hours, -15.4% in the past week
  • $ENJ -9.9% in the last 24 hours, -14.8% in the past week

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

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