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Futures Weekly Wrap (May 2nd-May 8th): Selling Pressure Increases While Support Weakens

2022-05-09 09:02

Chart of the Week

Exchanges Balance Surge

  • The total amount of BTC held on known cryptocurrency exchange addresses increased by more than 0.54% over the past week. Roughly 13,276 BTC flowed into multiple trading platforms.
  • The sudden increase in the BTC balance held on exchanges coincides with a spike in volatility, suggesting that market participants could be selling some of their Bitcoin holdings in anticipation of a steeper correction.

Bitcoin Lost Support

  • At about $34,032.00 on Sunday, May 8th, Bitcoin trended downward and approached a crucial area of interest.
  • From a technical perspective, BTC lost the 78.6% Fibonacci retracement level at $38,531.60 as support and is now edging closer to Jan. 24th’s low at $32,853.80. This demand wall could have the strength to keep Bitcoin at bay and help it rebound, especially after the significant losses incurred over the past week. Still, any signs of weakness around the $32,853.80 support level can encourage further selling, pushing prices to $26,828.20.
  • On Binance Futures, the BTCUSDT Long/Short Ratio rose to 3.40 on May 8th. Traders appear in “denial” after the recent correction as 77.25% of all accounts with an opened position in Bitcoin are net-long.

Weekly Market Mover

* Note: DEFIUSDT is a composite index perpetual contract that consists of a basket of DeFi protocol tokens listed on Binance. It is calculated using weighted averages of DEFI tokens’ real-time price on Binance and is denominated in USDT.
Find out more about DEFI Index and trade DEFIUSDT.

Highlights From This Week

Take Part in This Week’s Activities

  • JASMY Trading Tournament - Binance Futures has committed up to 50,000 BUSD tokens as rewards for regular and VIP 1 -2 users who trade JASMY/USDT USDⓈ-M Futures Contracts. (Register Now)
  • Interest Rate Reduction - Binance Margin launched a promotion to reduce interest rates for BTC, ETH, BUSD and USDT. Users may enjoy discounted annual interest rates as low as 0.8% with the mentioned assets during the promotion period.
  • Content Challenge - Binance Futures launched a content challenge asking creatives to produce videos, articles, or infographics about why crypto holders should consider trading futures on our platform. Submit your content now for a chance to win 300 BUSD.

Trade Our New Listings

New Updates

  • Cross and Isolated Margin - API3, ASTR, CTK, ​​GAL, MOB, NEXO, SRM, STX and WOO were added as new borrowable assets on Cross Margin, GAL, MOB and NEXO were added as new borrowable assets on Isolated Margin, and APE/BTC and APE/ETH were added as new trading pairs on Isolated Margin.
  • TWAP Trading Algorithm - Binance Futures has launched the Time-Weighted Average Price (TWAP) trading algorithm allowing API users on USDⓈ-M Futures to programmatically disperse large orders into smaller quantities, automatically executing these orders at regular intervals to minimize the impact on market prices.
  • Open Order Modification - Binance Futures has relaunched the Open Orders Modification Feature on COIN-Margined contracts, providing users with more flexibility to modify open orders when trading futures.
  • Portfolio Margin Program - Binance has launched the Portfolio Margin Program to unleash the cross-asset capital efficiency and consolidate the margin balances of USDⓈ-M Futures, COIN-M Futures, and Margin accounts for better risk management.
  • Liquidity Analysis - Binance Futures has launched the Liquidity Analysis feature on the Derivatives Portal for VIP users. This section displays customized charts (Cost To Trade, Bid-Ask Spread, Book Depth) for select USDⓈ-M Futures and COIN-M perpetual contracts on Binance Futures.

News Roundup

  • Twitter Buyout - Binance has committed $500 million to invest in Twitter alongside Elon Musk's buyout of the social media service. (Trade BNBBUSD)
  • Buying the Dip - The Luna Foundation Guard (LFG) acquired 37,863 BTC as it continues to strengthen its stablecoin reserves and move closer to its $10 billion target before the end of Q3. (Trade LUNAUSDT)
  • World Cup - Algorand signed a contract to become the “blockchain platform of FIFA” and provide a “blockchain-supported wallet solution” at the upcoming World Cup event, which will take place later this year in Qatar. (Trade ALGOUSDT)
  • Going Ape - Tesla founder Elon Musk put up a collage of Bored Apes as his Twitter profile picture, helping ApeCoin, the native token of the Bored Ape Yacht Club ecosystem, post significant gains. (Trade APEUSDT)
* Note: Binance encourages our users to trade responsibly. Trading can be engaging and fun, but trading is a serious business, and it can lead to financial and emotional distress. Trading derivatives carries risk, and cryptocurrencies and other digital assets often have high levels of price volatility.
Disclaimer: The information provided in this section doesn't represent any investment tips or Binance's official position.
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