$BTC 24 Hour High $40,234 / Low $38,195 | $BTC +4.0% Past 24 hours; -0.7% Past 7 days
Good morning. Crypto markets saw an aggressive rally overnight due to Elon Musk’s $44 billion Twitter takeover deal – $BTC and $ETH also pumped and reclaimed the $40,000 and $3,000 levels. Besides, though month-end options expiry may again bring trading volume and volatility back to the market, a lot of open interests have already rolled over to Q2 quarter-end expiry instead.
In the past 24 hours, $BTC regained ground above $40,000 after dipping as low as $38,21. If the bulls keep charging higher, an upside move towards $41,243 later today is not impossible. It is the 0.382 Fibonacci retracement level for the current impulsive move lower at this level, as well as the 111D MA. However, investors should be cautious about these sudden moves higher as they primarily seem to be a relief rally. We expect prices to reverse and head towards $36,000, the 1.618 Fibonacci extension for the current impulsive move. However, some bulls might argue that another bullish divergence is forming on the daily RSI, which is also creeping up above the weekly RSI, indicating a potential short-term shift. The daily MACD is close to flashing a buy signal again within 24 to 48 hours. Expect market volatility and keep an eye on these indicators in the next few days.
$ETH also rallied from $2,800 to now above $3,000. Given crypto’s exceptionally high correlation with the TradFi currently, there is no doubt that the bullish momentum in the TradFi markets contributed to $ETH’s move higher. It’s worth noting that more investors have started rotating into $BTC from altcoins as Bitcoin’s dominance has crept higher, while the weekly and daily RSI are trending lower. The immediate downtrend that we have been in since April is still holding strong. Plus, given the suddenness of this rally, an imminent pullback is on the horizon. Before we start reassessing the possibility for a renewed run higher, our first real target is $2,700, followed by $2,600.
Twitter agreed to be taken over at $54.20 a share by Tesla CEO Elon Musk, amounting to $44 billion. The deal can potentially expand the tycoon’s business empire and put the world’s wealthiest man in charge of one of the world’s most influential social platforms. The financial package includes $25.5 billion of debt and margin loan financing and $21 billion in equity funding. Musk has a 9.2% stake in Twitter currently. $DOGE, which Musk claimed to be more suitable for transactions than $BTC pumped by almost 20% following the news announcement.
Learn more from today’s Trader View video.
Digital Assets Market
- Total crypto market capitalization stands at $1.87T, +3.64% from yesterday
- $BTC is +0.20% at time of writing; 24H liquidations and funding rates: 106.40M, +0.00024% average
- $ETH is +0.34% at time of writing; 24H liquidations and funding rates: 70.21M, -0.00341% average
- Stablecoins market dominance: USDT 44.20%; USDC 26.51%; UST 9.71%; BUSD 9.39%; DAI 4.61%
Alts and DeFi watch:
- DeFi TVL: $213.13B (+0.16% over last 24 hours)
- $SOL +4.0% in the last 24 hours, -0.9% in the past week
- $SHIB +5.3% in the last 24 hours, -3.2% in the past week
- $SAND +2.2% in the last 24 hours, -0.5% in the past week
- $ENJ +4.3% in the last 24 hours, -4.0% in the past week
More news that caught our eye:
- $DOGE primed for massive price explosion as Elon Musk finally acquires Twitter for $44B
- Insider Q&A: ProShares CEO Michael Sapir on BTC funds
- $BTC’s ‘stuck at the moment’ as record cash flees crypto ETFs
- Standard Chartered partners with The Sandbox to create metaverse experience
- OCBC enters tie-up to use tokenized carbon credits
- Cardano to increase block size by 10% today speeding up transactions and DApp performance
- Here are the most popular cryptocurrencies in South Korea: Report
- The Central African Republic reportedly passes a bill to regulate crypto use
OSL Trader View is contributed by Hans-Stefan Vonhaenisch, Tiffany Wee & Ethan Fu.
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