$BTC 24 Hour High $52,850
$BTC 24 Hour Low $45,300
$BTC -10.1% past 24 hours; -0.4% past 7 days
Leverage in Alts leads market lower
Good morning. While $BTC was relatively unleveraged, we saw altcoins being leveraged much more than usual. A prime example would be popular coins like $SOL (Solana) which soared almost nine times in a month.
$BTC’s dominance is now at an all-time low (around 40%). If the rest of the market is overleveraged, $BTC will be dragged down too inevitably. $BTC’s fakeout above 51K caught many off guard. It first wicked down 19% and found support just below 43K before moving higher rapidly. Its daily candle closed at 46.9K; the same price level last occurred one week ago.
$BTC’s RSI is at levels at which previous sudden corrections found support. We expect prices to continue trending down slightly today, and potentially tomorrow too. In our opinion, key support areas to keep an eye on are $44K, followed by $42.5K.
$ETH leverage saw multi-month highs. It’s not surprising that over one-fourth of the total liquidations in the last 24 hours were in ETH, despite the cryptocurrency having less than 20% of the market share. $ETH pulled back by 24% and found support at $3,000, and in a somewhat more bullish fashion, closed above $3,358, where the 0.618 Fib retracement level was located. $ETH found support in and around $3,360, followed by $3,050. To the upside, there is less resistance than in $BTC. Zoom out in times like this, $ETH last traded at this level six days ago.
Just one day after El Salvador became the world’s first country to adopt $BTC as legal tender, it got off to a bumpy start — street protests and a price tumble immediately, following an announcement that the government bought another 200 BTC has not helped President Bukele’s cause. In addition, technical difficulties surrounding El Salvador’s hot wallet of choice were not available for download on Google Play. The international community continues to watch with bated breath to see how the small but intrepid nation soldiers on in its digital asset legal tender adoption path.
Learn more from today’s Trader View video.
Digital assets market:
- Total crypto market capitalization stands at $2.18T, -11.6% from yesterday
- $BTC is down 0.3% at time of writing, support / resistance – 42,600 / 56,400
- $BTC liquidations and funding: $1B, 0.0026% average
- $ETH is down 0.6% at time of writing, support / resistance – 3,035 / 4,370
- $ETH liquidations and funding: $908M, 0.0151% average
Alts and DeFi watch:
- DeFi TVL: $89.27B
- $AVAX down 16.9% in the last 24 hours, down ~3.7% in the past week
- $XMR down 15.1% in the last 24 hours, down ~7.3% in the past week
- $AAVE down 13.9% in the last 24 hours, down ~11.5% in the past week
- $NEAR up 42.7% in the last 24 hours, up ~61.2% in the past week
More news that caught our eye:
- Major US crypto exchanges buckled as BTC’s price fell on Tuesday
- $500B German asset manager Union Investment considers adding BTC to existing funds
- ‘Nothing to fix’ – What Cardano’s Hoskinson said after Minswap shut down
- McDonald’s, Pizza Hut, fast food chains in El Salvador adopt BTC Standard, will they hold?
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