Markets turn shaky as crypto momentum fades

​​$BTC 24 Hour High $47,459 / Low $45,566   |   $BTC +1.1% Past 24 hours; +4.2% Past 7 days

Good morning. $BTC retraced aggressively over the weekend to retest the support level at $44,500 after trading above $47,000 for several days. $BTC looks relatively shaky this morning due to the sudden trend reversal. We may see another pullback to at least $44,500 to test the 50W MA again. If the pullback widens, $BTC will likely slide towards $42,500. The daily MACD indicator is close to flashing a sell signal, while the daily RSI has traded above the weekly RSI for over a month already. Thus, we would expect a convergence of these two lines to take place. The next crucial resistance to keep an eye on is $48,280. This is the high price from March 29 and where the 200D MA can be found. If the bulls manage to push the prices higher, it’s possible for us to cross the next upside hurdle at $52,000 fairly quickly. If so, we may see seasonal “April Bulls”, a psychological phenomenon tied to the beginning of spring.

$ETH has outperformed $BTC over the weekend. The No. 2 digital asset’s retest of the support level at $3,200 was extremely quick. $ETH is still marching higher steadily, just 5% away from its YTD open at $3,750. $ETH has found itself in an area with very little trading activity over the last nine months. This means that we could see thinner order books at these levels and $ETH’s continued outperformance to the upside. That said, indicators show that the momentum is easing and the market is currently overbought. $3,660 is the next real rest for $ETH, the 1.618 Fibonacci retracement extension from the current short-term impulsive move and strong levels of support and resistance on multiple occasions since September 2021. 

The 19th millionth BTC was mined last Friday, a landmark moment for the No. 1 digital asset – leaving only 2 million BTC to be mined over the next 120 years due to the halving rate of coins produced at every 210,000 blocks. Bitcoin Mining Difficulty regularly adjusts itself, with blocks produced every 10 minutes on average. $BTC has a hard cap of 21 million coins, meaning that 90% of all BTC that will ever exist is already in circulation.

Learn more from today’s Trader View video

Digital Assets Market

  • Total crypto market capitalization stands at $2.27T, +0.9% from yesterday
  • $BTC is +1.25% at time of writing; 24H liquidations and funding rates: 29.33M, +0.00652% average
  • $ETH is +2.23% at time of writing; 24H liquidations and funding rates: 30.75M, +0.00803% average 
  • Stablecoins market dominance: USDT 43.84%; USDC 27.47%; BUSD 9.46%; UST 8.81%; DAI 4.83%

Alts and DeFi watch:

  • DeFi TVL: $232.02B (+0.98% over last 24h)
  • $SOL +2.6% in the last 24 hours, +34.6% in the past week
  • $SHIB +3.1% in the last 24 hours, +9.5% in the past week
  • $SAND +1.4% in the last 24 hours, +4.4% in the past week
  • $ENJ +0.5% in the last 24 hours, +13.6% in the past week

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

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