Cryptos start seeing bullish signals as altcoins led rebound

​​$BTC 24 Hour High  $41,780  / Low $40,579  |   $BTC +1.6% Past 24 hours; +3.1% Past 7 days

Good morning. Altcoins led the crypto market to rebound as sentiment improved. However, a strong US Dollar remains one of the biggest headwinds as the US Dollar Index (DXY) broke 100 for the first time in almost two years. A strong US Dollar will still be an overhang, and the correlation with equities is now at a very high level – the 1-month correlation between $BTC and NASDAQ reached new highs of 0,94.

$BTC saw a minor rally towards $41,600, topping out below $41,800. Currently, it is attempting to push the prices higher again, although $41,600 (where the 111D MA is) is holding as resistance for now. If the prices continue moving higher, our eyes are on the short-term target at $43,461, the 1.618 Fibonacci extension of the current impulsive move. Our view remains neutral in the short term, and range trading will likely continue in the next few days. That said, we are looking at a potential bullish divergence on the daily timeframe and keeping an eye on the daily MACD, which could flash a buy signal as soon as tomorrow. 

Like $BTC, $ETH’s technical indicators are close to flashing some bullish signals – a possible bullish divergence on the RSI and a buy signal on the daily MACD are on the horizon. If the No. 2 digital asset can breach the first real upside hurdle at $3,168, it may rally towards our target at $3,309. This is the 1.618 Fibonacci extension of the current impulsive move and aligns with the resistance level we saw in early April. However, if we lose the key support at $2,950, not only would the bullish price set-up be invalidated, $ETH would retrace further down and continue the range trading that we have seen since April 11. 

Australia’s first BTC ETF is set to launch on April 27, 2022 on the Chicago Board Options Exchange (Cboe). Instead of investing in BTC directly, the new Australian ETF will invest in shares in Canada’s Purpose BTC ETF. Despite the Australian Securities Exchange (ASX)’s required margin of 42%, four market players are already preparing to cover the risks of the BTC ETF. More asset management companies are keen on listing BTC-linked ETFs in Australia, including ETF Securities, VanEck Australia, BetaShares, and Monochrome Asset Management.

Learn more from today’s Trader View video

Digital Assets Market

  • Total crypto market capitalization stands at $2.01T, +1.1% from yesterday
  • $BTC is +1.6% at time of writing; 24H liquidations and funding rates: 29.18M, +0.00052% average
  • $ETH is +1.3% at time of writing; 24H liquidations and funding rates: 15.90M, +0.00073% average 
  • Stablecoins market dominance: USDT 44.31%; USDC 26.62%; UST 9.50%; BUSD 9.32%; DAI 4.65%

Alts and DeFi watch:

  • DeFi TVL: $215.51B (+0.6% over last 24 hours)
  • $SOL +6.3% in the last 24 hours, +4.8% in the past week
  • $SHIB +0.5% in the last 24 hours, -6.4% in the past week
  • $SAND +9.8% in the last 24 hours, +4.1% in the past week
  • $ENJ +6.6% in the last 24 hours, -3.3% in the past week

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

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