Crypto Chronicles: A Weekly Dive into the Crypto Seas
London: 7 March 2024 (TraderMade): Dive into the dynamic world of cryptocurrency with insights into Bitcoin's surge, altcoin strategies, and derivatives dynamics. Explore key market indicators and trends shaping the crypto landscape.
Key Takeaways
- Bitcoin nears $67k, fueled by positive economic data and minimal resistance.
- Potential gamma squeeze observed, with options concentrated at key levels.
- Profit-taking emerges as Bitcoin nears $70k, altcoins see increased interest from investors.
- Hedge funds and VCs shift focus to altcoins and DeFi projects.
- Basis trades gain traction due to fluctuations in the basis rate.
BTCUSD Technicals: Scaling New Heights
What a week it's been for the crypto community! As the ink dries on this update, BTCUSD has shattered the $64,000 barrier, teasing the imminent breach of all-time highs in USD terms.
While last week's hopes for a retracement to $49,000 hung on PCE numbers and GDP figures, the market witnessed resilience, driven by ETF inflows. With potential gamma squeezes and a limited journey to the $69,000 all-time-high level, the sky is the limit.
Key Levels to Watch
$49,000 / $50,000 / $57,500 / $69,000 / $70,000
Support Levels
The levels to watch for potential price support are $49,000 and $50,000.
Resistance Levels
Keep an eye on potential resistance at $57,500, $69,000, and $70,000.
Spot Desk: Stables and Off-Ramps
Spot desks observed increased off-ramp activity, coinciding with AUD-USD's descent. The post-Chinese New Year return to trading rhythm in Asia might explain this surge. As we approach all-time highs, profit-taking on BTC and ETH is noticeable.
Options market gamma expectations hint at a potential climb to $70,000 before any substantial dip.
Altcoin Season: Rotation and Hidden Gems
Intriguingly, hedge funds and private clients are pivoting from majors to altcoins. This rotation and accurate money bids on alts suggest a dynamic market. Altcoins like TIA, SEI, and RUNE are gaining traction, with a thematic focus on protocol layers and Bitcoin smart contract plays.
As venture capital liquidity floods back, the altcoin narrative continues to evolve.
Derivatives Desk: Basis Rate Buzz
Exclusively for wholesale investors, the Basis Rate has been on a rollercoaster since Spot ETFs' launch. The 30-day Basis rate hit a staggering 28% p.a. Demand for the yield premium through basis trades is rising.
Whether you sell the future and buy spots or explore structured OTC products, the potential for benchmark USD yields is significant.
Bitcoin's Price Surge: A Snapshot
Bitcoin's price surge, characterized by minimal corrections, is the talk of the town. Driven by ETF investments, Bitcoin broke the $60,000 mark and experienced stability with reduced volatility. This is a golden opportunity for strategic traders to seize the moment.
In the weekly recap
- Bitcoin reaches a two-year high, propelling the global crypto market cap beyond $2 trillion.
- BlackRock's spot Bitcoin ETF reaches a noteworthy achievement, surpassing $1 billion in daily trading volume and accumulating total net inflows exceeding $7 billion.
- US government crypto wallets handle nearly $1 billion in seized Bitcoin, while Grayscale's Bitcoin ETF reports its lowest outflows since conversion.
- BitForex exchange faces challenges with halted withdrawals and unresponsive customer support.
- UK law enforcement is set to gain enhanced authority in seizing crypto assets, and the US preliminary quarter GDP signals a robust start to the year.
- Bitcoin reached over $60,000, driven by a tenfold increase in Bitcoin ETF demand over daily production by miners.
- Cardano (ADA) and Litecoin (LTC) witnessed substantial one-day gains, marking significant market cap growth.
The crypto seas remain dynamic, offering both challenges and opportunities. As Bitcoin nears all-time highs, anticipate more twists and turns in this journey. Watch for our upcoming weekly crypto update as the adventure unfolds!
