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Futures Weekly Wrap (April 26th - May 3rd): ETH hits $3,000 while BTC struggles under $60,000

Binance Futures
2021-05-03 03:40
Bitcoin’s price made a recovery in the past week. The world’s largest cryptocurrency hit $58,458 on Saturday, recovering from the frantic selling, which saw prices briefly plunging under $47,000 on April 25th. Bitcoin’s price is up by over 15% on a 7-day rolling basis, pushing its market value back above $1 trillion.
Despite Bitcoin’s price recovery, the Bitcoin dominance index, which measures Bitcoin’s market value as a percentage to the value of all cryptocurrencies, fell to its lowest reading in over two years to 48.2%, according to CoinMarketCap. The continued rally of large-cap altcoins in the past week, such as Ethereum, BNB, and XRP, have done the most damage to BTC’s dominance levels.
Bitcoin is changing hands near $57,950 on Monday morning (UTC+8), up by 2.5% from Sunday.
Source: Tradingview
Bitcoin posted a strong recovery in the past week. Bitcoin price is back above its 21-day and 55-day exponential moving average. On April 30th, Bitcoin surged past a critical resistance level of $55,000, clearing the neckline of an inverse head-and-shoulders pattern, with notable price strength and an uptick in volume. It is crucial for Bitcoin to maintain a foothold above this neckline breakout to resume its upward trajectory. A failure will reduce the significance of the pattern and potentially steer BTC towards a reversion to the 55-day EMA.
In the derivatives market, funding rates for Binance Futures USDT-margined & Coin-margined contracts surged as BTC-leveraged long positions piled in.
Source: Binance Futures
BTC quarterly and bi-quarterly contracts have seen similar growth in buying pressure throughout the week, indicated by the rising futures basis.
Source: Binance Futures
Source: Binance Futures
The basis rate for BTC quarterly contracts rose from 3.7% to 4.2%, while the basis rate for bi-quarterly contracts rose from 9% to 10.4%.
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Ether (ETH) stole the headlines with a new all-time high of $3,028 as of Monday morning (UTC+8). The cryptocurrency of the Ethereum blockchain registered its 5th consecutive week of positive gains, up over 27% on a 7-day rolling basis. ETH has gained over $100 billion in market value over the past month, ending April with a 44% gain.
Source: Tradingview
In the past week, Ether has been one of the strongest performers among large-cap cryptocurrencies, outperforming Bitcoin. The ETH/BTC pair surged to its highest level since August 2018 as Bitcoin struggled under $60,000 while Ether hit a new ATH. The pair continued its upwards trajectory, registering a rolling 7-day gain of 8.5%.
From a technical perspective, ETH has surged into overbought territory as prices diverged away from the 21-day and 55-day EMA dynamic support, breaking above $3,000 for the first time. Investors must pay close attention to these support levels given ETH’s tendency to revert towards them as momentum overheats.
Another market mover is Ripple’s XRP. XRP price has seen an explosive rally in the last week of April, registering a positive gain of over 50%. XRP price has strongly rebounded from the 55-day EMA dynamic support level and is on track to fully recover back to pre-crash levels. Like Bitcoin, XRP cleared the neckline of an inverse head-and-shoulders pattern, with considerable momentum and volume. A continued upward momentum would provide XRP a clear path towards $2.
Source: Tradingview
In the past week, XRP has gained over $20 billion in market value to $72 billion, according to CoinMarketCap, establishing its place as the fourth-largest cryptocurrency by market capitalization. XRP has produced an impressive return of 180% in April, bringing its year-to-date gains to over 620%.
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Major Market Movers on Binance Futures
With the increased trading activity and volatility, Binance Futures perpetual contracts have provided alternative venues for traders and investors to capture trading opportunities.
Top Gainers
FTMUSDT (+147%)
7-day Vol: 2.44 BN
MATICUSDT (+113%)
7-day Vol: $6.6 BN
WAVESUSDT (+84%)
7-day Vol: $1.3 BN
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