$ETH breaks out from weekly highs

​​$BTC 24 Hour High $41,486 / Low $40,571   |   $BTC -0.3% Past 24 hours; +3.6% Past 7 days

Good morning and happy Friday. Following a rebound of the equity markets, $BTC stabilized above $40,000 while altcoins took the lead. The No. 1 digital asset has traded within a tight corridor between $32,000 and $43,300 since January 2021, seeing a 10% loss in price this year so far. The weekly 200 MA has provided considerably strong support since 2017, and prices are stabilized in the $30,000-$40,000 area, suggesting $30,000 could be the bear market’s bottom. Despite strong support at the $40,000 area, $BTC is struggling to break the $40,800 threshold (0.618 Fibonacci retracement level). To confirm a break of the downtrend, we need to cross the next upside hurdle at $42,500, with a further breakthrough into the upside.

$ETH rallied in the past 24 hours and finally breached $2,800, which demonstrated significant resistance in the past. While $ETH’s mid-term trend since November 2021 remains bearish, the bulls will need to push the prices higher to cross $3,100 before an upside breakthrough is confirmed. Besides, based on the historical data in 2017, 2018 and March 2021, when $ETH breaks off from $BTC, we might see the start of another bull market. Let’s see if $ETH can break the trendline as it is premature to conclude that $ETH’s current outperformance of $BTC may result in the next leg-up. 

Famed founder of Terraform labs, Do Kwon announced plans to accumulate up to $10B worth of BTC to bolster the project’s (Terra) stablecoin reserves. Terra’s stablecoin UST is a Proof of Stake blockchain with LUNA its deflationary native token acting as a counterbalance to keep UST’s price stable. The BTC reserves will be used to “backstop short-term UST redemption and for a decentralized forex reserve”. No timeline has been provided on the reserve build-up, but any near-term spikes could potentially be attributed to this buying exercise.

Learn more from today’s Trader View video

Digital Assets Market

  • Total crypto market capitalization stands at $1.91T, +0.3% from yesterday
  • $BTC is -0.3% at time of writing; 24H liquidations and funding rates: 17.50M, -0.00987% average
  • $ETH is -0.5% at time of writing; 24H liquidations and funding rates: 21.82M, -0.01118% average
  • Stablecoins market dominance: USDT 43.14%; USDC 28.41%; BUSD 9.54%; UST 8.17%; DAI 5.06%

Alts and DeFi watch:

  • DeFi TVL: $206.31B (+0.0% over last 24h)
  • $SOL +0.3% in the last 24 hours, +5.4% in the past week
  • $SHIB -2.2% in the last 24 hours, -2.3% in the past week
  • $SAND -3.0% in the last 24 hours, +12.8% in the past week
  • $ENJ -1.5% in the last 24 hours, +5.1% in the past week

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