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Charts of the Week
Bitcoin Receives Strong Support At 100-Day SMA
While Bitcoin continues to be trailing within a descending parallel channel on the daily chart, BTCUSD is depending on the strong support at the 100-day Simple Moving Average (SMA) at $26,461 to avoid further losses.
The aforementioned foothold appears to be credible support, as the 200 twelve-hour SMA also emerges in the same area.
However, Bitcoin may continue to be pressured below $28,311, where the 50-day SMA and 61.8% Fibonacci retracement level coincide.
Options Open Interest Data Suggest Bitcoin Could Recover
Bitcoin options open interest data indicates that there are more calls than puts, suggesting that the market sentiment is still skewing somewhat neutral to bullish.
Source: Binance Options Markets
Bitcoin Futures Quarterly Contracts Trade In Contango
A reassuring sign is shown from Bitcoin futures quarterly contracts as they continue to trade in contango – where futures prices are higher than the price indexes on spot markets.
In contrast, when Bitcoin futures contracts trade in backwardation – futures prices lower than spot prices, then a bear market could be in the making.
Source: Binance Futures
Open Interest Decreases
On Binance Futures, the BTCUSDT Open Interest closed the week on May 21 at about 2.5% lower than the previous week ending on May 14.
Traders Are Optimistic
On Binance Futures, the BTCUSDT Long/Short Ratio closed on May 21 at 1.83 as 64.72% of all Binance Futures accounts with an open position in BTCUSDT were net long, while the other 35.28% were net short. The Taker Sell Volume closed the week slightly higher than Taker Buy Volume.
BTC Mining Difficulty Reaches ATH - Bitcoin's mining difficulty reached an all-time high on Thursday, with a 3.22% increase, reflecting increased competition among miners as the network's hashrate also hit a record high.
BTC NFTs Popularity Grows - Bitcoin NFTs have surged to second place in blockchain-based NFT sales, totaling $167 million in 30 days, trailing Ethereum's $397 million but significantly outperforming Solana's $57 million.
BTC Ordinals Fees - Bitcoin Ordinals network fees surged by 700% on May 20, with a shift towards text-based inscriptions in Bitcoin NFTs, where unique numbers are assigned to Satoshis, enabling tracking and transfer, and creating digital assets on the Bitcoin blockchain.
Staked ETH Increases - Since the implementation of the Shapella upgrade on April 12, interest in staking ETH has surged, with over 4.4 million coins deposited into the staking contract, reaching a total of 22.58 million