$BTC 24 Hour High $43,897 / Low $42,741 | $BTC +0.6% Past 24 hours; -4.4% Past 7 days
Good morning and happy Friday. Prices of BTC and other major digital assets are stabilized as buyers return from the sidelines. It’s worth noting that SEC has decided to approve Teucrium’s BTC futures ETF filed under the Securities Act of 1933, which renews hopes for a spot ETF. Nevertheless, range-bound price action could persist over the weekend as investors weigh the Fed’s hawkish stance and looming macroeconomic factors.
Over the past 24 hours, $BTC has been trading in a tight range, and it’s now consolidating at $43,500. As the indicators suggested, we are not out of the woods yet, so brace yourself for further potential downside over the weekend. Funding rates are slightly negative on most retail exchanges, implying shorts are currently more aggressive in their views than longs. In theory, prices could move all the way down to $37,600 before the current bullish price structure is invalidated. But, if $BTC rebounds and a daily candle closes above $45,500, it’s safe to confirm that an immediate bullish continuation is still on the horizon. This level is the crucial resistance zone that, for all intents and purposes, has acted as the price ceiling since January 6.
$ETH is currently consolidating, with the 0.382 Fibonacci retracement level at $3,200 between the November-High and January-Low acting as support. The daily RSI has also bounced at the upward-trending support line that has been in place since February 24. $ETH is holding a crucial support level for now, but a move lower towards $3,040 is still on the cards since the bearish momentum is still building, as the MACD indicated. That said, an aggressive build-up of leverage among shorts has caused negative funding rates to explode massively over the last few days. This will be an interesting metric to follow over the coming days. If a trend reversal can sustain the No. 2 digital asset’s upwards movement, we could see some rapid price acceleration as these shorts are liquidated and become forced buyers.
Lunar Foundation Guard (LFG), the non-profit organization created to support Terra announced that it had purchased $100 million worth of AVAX, the native token of the Avalanche Foundation. The purchase aims to bolster the reserves of its stablecoin UST and the decision to hold AVAX over other exchange tokens because the move can impact the Avalanche ecosystem more profoundly. The $100 million swap (UST for AVAX) equates to 0.5% of AVAX’s market cap, as opposed to hardly making a dent in a partnership with the Ethereum Foundation. With AVAX’s market cap being 18 times smaller than ETH, this makes a more impactful partnership. Ava Labs and Luna will also have a collaboration to launch a gaming subnet.
Learn more from today’s Trader View video.
Digital Assets Market
- Total crypto market capitalization stands at $2.11T, +1.5% from yesterday
- $BTC is +0.09% at time of writing; 24H liquidations and funding rates: 33.28M, -0.00718% average
- $ETH is +0.26% at time of writing; 24H liquidations and funding rates: 20.22M, -0.00597% average
- Stablecoins market dominance: USDT 44.04%; USDC 27.18%; BUSD 9.42%; UST 8.93%; DAI 4.79%
Alts and DeFi watch:
- DeFi TVL: $223.12B (-2.38% over last 24h)
- $SOL +5.6% in the last 24 hours, +1.0% in the past week
- $SHIB +1.2% in the last 24 hours, -3.8% in the past week
- $SAND +3.4% in the last 24 hours, -8.7% in the past week
- $ENJ +10.2% in the last 24 hours, -5.6% in the past week
More news that caught our eye:
- WSJ: As BTC market expands, demand for regulatory guidance grows
- Strike CEO Jack Mallers announces Shopify partnership, new payment network
- Why Shark Tank Star Kevin O’Leary thinks BTC mining will ‘save the world’
- Peter Thiel unleashes on ETH Warren Buffett and his ‘enemies’ at Bitcoin 2022
- Cathie Wood on BTC hitting $1M and Cash App features
- Meta unveils plans to launch new crypto asset: Report
- The FDIC wants US banks to report on current and intended crypto-related activities
OSL Trader View is contributed by Hans-Stefan Vonhaenisch & Ethan Fu.
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