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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.

News Roundup

  • 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

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