$BTC 24 Hour High $39,132.30 / Low $38,190.58 | $BTC -0.8% Past 24 hours; -5.2% Past 7 day
Good morning. May set for a mixed start as the digital assets markets are bracing for the Fed’s 50 bps rate hike this week. Solena had a bumpy start in May as it suffered from its seventh outage in 2022. Its seven-hour outage resulted from bots swarming the “candy machine” NFT mining tool last Saturday. Besides, we expect volatility in risk assets ahead of the Federal Open Market Committee (FOMC) meeting on May 3 and 4 since a 50 bps rates hike is likely to be priced in, which can lead to a buy-the-face event.
$BTC is now trading at $38,400 and still licking its wounds after seeing a 23% loss in price from its April’s high. The 200D MA is starting to trend downwards, and a flip of the price could occur in the coming weeks. With the RSI at 40, it is likely to have room to go before a pullback occurs. If the bearish sentiment continues, prices may retrace towards the next major support levels at $36,000 and $32,000 in the near term. A continuation of bearish sentiment is expected as the pullback occurs, with the major 0.5 Fibonacci retracement level broken. $BTC is still trading below the 200D MA in a similar pattern to July 2021. Should the major support level of $38,700 fail to hold, an impending breakdown could be looming.
Like $BTC, $ETH also witnessed a 23% drop in price since its April top, and its volatility and trading volumes across crypto exchanges have started to decline ever since. With immediate support at $2,600 and $2,450, the No. 2 digital asset is currently trading at $2,842. These levels should hold in the near term until we see a significant rebound in the crypto markets. Funding rates of $ETH are relatively flat, with a neutral RSI at the 40s level. It’s worth noting that ETH’s expiry options show significant open interest for December 31, 2022 expiry at around the 5,000 and 6,000 levels. Besides, Ethereum mining difficulty is at all the highs and is expected to charge higher in the short run – despite the positive news, $ETH fails to mirror the bullish sentiment in prices yet.
Learn more from today’s Trader View video.
Digital Assets Market
- Total crypto market capitalization stands at $1.82T, -0.8% from yesterday
- $BTC is -0.3% at time of writing
- $ETH is -0.4% at time of writing
- Stablecoins market dominance: USDT 44.36%; USDC 26.18%; UST 9.94%; BUSD 9.53%; DAI 4.45%
Alts and DeFi watch:
- DeFi TVL: $199.42B (-0.13% over last 24 hours)
- $SOL -4% in the last 24 hours, -14.2% in the past week
- $SHIB -4.5% in the last 24 hours, -15.6% in the past week
- $SAND -3.3% in the last 24 hours, -23.3% in the past week
- $ENJ -4.5% in the last 24 hours, -23.2% in the past week
More news that caught our eye:
- Argentina’s largest private bank launches crypto trading feature
- Pierre Poilievre wants to bring BTC adoption to Canada
- Samsung Group investment arm to list blockchain ETF on Hong Kong Exchange
- Fidelity’s bitcoin 401(k) plan tests regulators’ crypto knowledge
OSL Trader View is contributed by Hans-Stefan Vonhaenisch & Ethan Fu.
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