$BTC 24 Hour High $30,531 / Low $28,658 | $BTC +4.6% Past 24 hours; +3.9% Past 7 day
Good morning and happy Friday. As the equities took a breather from the macro downwards move, the digital assets also recovered slightly from last week’s loss. Despite the declining U.S. 10-Year Treasury Yields and weakening DXY, no sustainable bullish moves were triggered in the Tradfi and crypto markets overnight. However, don’t let your guards down as we move into the weekend because crypto continues trading dovetail with equities.
While $SOL and $DOT saw prices jump by 20%, $BTC continued to outperform 85% of the top 50 altcoins in the past 90 days and is currently held above $30,000. The trading corridor has started to form more clearly, and our eyes are on $28,600 and $30,700 (to $31,400) for support and resistance levels, respectively. The daily RSI of the pioneering digital assets has also started to break above the weekly RSI. If the bullish momentum continues, $BTC may climb towards our upside target of $33,200.
However, we noted a tell-tale sign that we are still in a bear market given Bitcoin’s dominance continues to chart higher, currently at 45%. This shows that investors continue selling their altcoins and rotating into $BTC as the overall price grinds lower. Should we continue to see weakness in the Tradefi and crypto markets over the coming months, we expect the dominance to climb towards 55-60%.
In the past 24 hours, $ETH finally returned to the middle part of the current trading corridor, with support extended down to $1,900. The Fibonacci retracement levels between May 16 high and May 19 low indicate support and resistance levels. Investors should keep an eye on the 0.786 Fibonacci retracement level at $1,955 for the intraday support, while the 0.236 level at $2,100 acts as good resistance. If we break below $1,900, $ETH may retrace to our downside target at $1,753.
Tether’s consolidated reserves report revealed a 17% quarter-over-quarter decline in commercial paper from $24.2 billion to $19.9 billion. The attestation constitutes the group’s assets as of March 31, 2022, to have consolidated total assets to be more than $82,424,821,101, which exceeds its total liabilities. Also, the group’s reserves against issued digital tokens surpass the amount required to redeem them. Overall, Tether showed that its fully-funded, and the composition of its reserves are stable, liquid, and conservative.
For more information about the latest trends about the crypto investment, the stablecoin saga, and the rising Bitcoin dominance, please watch OSL’s Americas Head of Institutional Sales Jeffrey Howard’s interview on CoinDesk TV.
Learn more from today’s Trader View video.
Digital Assets Market
- Total crypto market capitalization stands at $1.34T, +4.2% from yesterday
- $BTC is -0.22% at time of writing; 24H liquidations and funding rates: 54.97M, +0.00931% average
- $ETH is -0.18% at time of writing; 24H liquidations and funding rates: 37.66M, +0.02496% average
Alts and DeFi watch:
- DeFi TVL: $110.91B (+1.01% over last 24 hours)
- $SOL +3.4% in the last 24 hours, +16.9% in the past week
- $SHIB +1.7% in the last 24 hours, +8.1% in the past week
- $SAND +8.5% in the last 24 hours, +16.6% in the past week
- $ENJ +6.5% in the last 24 hours, +20.6% in the past week
More news that caught our eye:
- OSL CEO: Look past the clouds, the future for digital assets is bright
- OSL on crypto investment trends, stablecoin saga and Bitcoin’s dominance (08:00-15:00)
- South Koreans heavily accumulating LUNA in hopes of a gigantic price rebound
- BTC fall hits Thailand’s would-be crypto miners like Jasmine
- Microstrategy CEO expects BTC to ‘go into the millions’ despite crypto market sell-off
- Tether reduces commercial paper holdings to improve quality of reserves
- Terra network will be reborn, according to official voting
- Luxury watchmaker Tag Heuer starts accepting crypto for online purchases
OSL Trader View is contributed by Hans-Stefan Vonhaenisch, Tiffany Wee & Ethan Fu.
OSL is Asia’s most comprehensive digital asset platform providing brokerage, exchange, software-as-a-service and insured custody solutions to professional investors.
Home to one of the world’s largest and most experienced digital asset trading desks, OSL has its finger on the pulse of the market. The Trader View newsletter is a short, easily digested summary of market activity and eye-catching news of the day.
Feedback is important to us, and we’re keen to learn more about the types of insights and intelligence that matter to you most. Please share your thoughts with us.
Please refer to OSL’s relevant disclaimers and disclosures associated with this note, including restrictions on redistribution.