Weakness of crypto persists, $BTC struggles at $42K

​​$BTC 24 Hour High $43,451 / Low $41,889   |   $BTC -1.6% Past 24 hours; -9.0% Past 7 days

Good morning. TradFri continues to demonstrate weakness, and digital assets followed suit, with crypto’s trading volume retraced to the lowest level year to date. $BTC tried to reclaim key support above $43,500 over the weekend but moved lower afterward amid a lack of major development or positive news. 

The No. 1 digital asset breached the upward-trending support line and successfully retested as resistance. If this current level fails to hold, $BTC will likely slide towards the next potential support area at $39,000, which we saw a high level of trading volumes historically, as the VPVR pinpointed. The outlook for $BTC is relatively bearish in the short term, and we may see a retest of $39,000. We believe there is room to run further given a neutral RSI level at 43 and support levels breaking. If the trend reverses, we would like $BTC to climb towards the key resistance of $46,000.

$ETH is holding up reasonably well compared to $BTC, with key support at $3,200 holding. $3,144 is the crucial support at this stage, where the 50W MA also plays its part here. In all likelihood, we’ll see the next move seeing lower rather than going up. Technical indicators suggested there is room for more downside and equity futures too and it has lost its momentum. Keep an eye on $3,040, the local top from March 2. Although this would be a minor obstacle, we would move as low as $2,876 as the 1.618 Fibonacci extension suggested. 

ProShares, the first issuer of BTC futures-linked ETF has filed for an inverse ETF called “Short Bitcoin Strategy ETF”. This relatively common product in the ETF marketplace allows investors to bet against the rise in prices and profit if the price of the underlying goes south. The newly-filed ETF has a June listing target but has yet to get the nod from the SEC, which could see this being delayed.

Learn more from today’s Trader View video

Digital Assets Market

  • Total crypto market capitalization stands at $2.06T, -0.6% from yesterday
  • $BTC is -0.48% at time of writing; 24H liquidations and funding rates: 29.22M, +0.00002% average
  • $ETH is -0.68% at time of writing; 24H liquidations and funding rates: 20.16M, -0.01041% average 
  • Stablecoins market dominance: USDT 44.06%; USDC 27.07%; BUSD 9.56%; UST 8.89%; DAI 4.81%

Alts and DeFi watch:

  • DeFi TVL: $222.24B (+0.58% over last 24h)
  • $SOL -1.3% in the last 24 hours, -18.5% in the past week
  • $SHIB -0.4% in the last 24 hours, -8.2% in the past week
  • $SAND -3.6% in the last 24 hours, -18.2% in the past week
  • $ENJ -7.2% in the last 24 hours, -10.8% in the past week

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

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