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Futures Weekly Wrap (Mar 7th-Mar 13th): Cryptos Under Pressure

2022-03-14 09:33

Chart of the Week

History Has a Tendency to Repeat Itself

  • Bitcoin tends to enter corrective periods that have seen its market value fall by roughly 80% from its all-time high throughout its historic uptrend. Such significant retracements were seen between 2014 and 2015, 2017 and 2018, and between 2018 and 2020.
  • When looking at Bitcoin’s weekly chart, the price behavior seen in previous bear cycles seems to have something in common. BTC consolidated for an extended period around the 100-week moving average before capitulating toward the 200-week moving average to form a market bottom.
  • A similar capitulation event could see the pioneer cryptocurrency break the 100-week moving average at $34,000 to look for support around the 200-week moving average at $21,000. Still, it remains to be seen whether history will repeat itself.

Bitcoin at Critical Support

  • At about $37,743 on Sunday, Mar. 13th, Bitcoin continues to hold above a vital support level that appears to be weakening over time.
  • From a technical perspective, the 200-day moving average at $37,500 on the 3-day chart is the most significant level of support preventing Bitcoin from capitulating to $28,700. BTC must do everything in its power to hold above $37,500 to have a chance to take another jab at the 100-day moving average at $45,000.
  • On Binance Futures, BTCUSDT Long/Short Ratio has risen significantly to hit a 2.42 ratio on Mar. 13th. Traders appear to be growing extremely optimistic about the future price action as 70.73% of all accounts are net-long on Bitcoin. This can be considered a warning signal that might lead to a long-squeeze

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 by 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

  • Trade Layer 1 Tokens and Win - Binance Futures has committed up to 188,888 BUSD tokens as rewards for users who trade USDⓈ-M Futures of the most popular Layer 1 Tokens. (Register Here)
  • Chat and Earn! - Seize a chance to earn daily BUSD airdrops in the Binance Futures Chat Room. Our chatbots will distribute BUSD in the English Chat Room every day from 10:00 to 17:00 UTC. (Join Now)
  • Futures Content Challenge - Binance Futures launched a new content challenge asking creatives to produce videos, articles, or infographics about why crypto holders should consider trading futures in our platform. Submit your content now for a chance to win 300 BUSD.
  • Get Verified and Win! - Binance launched the second round of Enterprise Verification to give users a 1,000 USDT USDⓈ-M Futures cashback voucher for completing enterprise verification and opening a Futures account.
  • Margin Friday - Users who complete an average daily margin trading volume of 1,000 BUSD, or borrowing volume of 100 BUSD on Binance Margin, and complete identity verification by the end of the promotion will be eligible to share 20% trading income.

Trade Our New Listings

  • ANC - USDT-Margined ANC perpetual contracts with up to 25x leverage are now live on Binance Futures. (Trade ANCUSDT)
  • ICX - COIN-Margined ICX perpetual contracts with up to 20x leverage are now live on Binance Futures. (Trade ICXUSD)

New Updates

  • Trading Discount - Binance Futures extended the fee discount for all USDⓈ-M BUSD trading pairs for all new and existing users.
  • Liquidity Providers - The USDⓈ-Margined Futures Liquidity Provider Program has been upgraded to give qualified liquidity providers higher maker rebates of up to 0.003% and access to Binance Futures low-latency API service.

News Roundup

  • 10M ETH Locked - Ethereum 2.0 now has over 10 million ETH, worth roughly $26 billion, locked in its deposit contract leading up to the protocol upgrade that will convert Ethereum’s consensus mechanism from proof-of-work to proof-of-stake. (Trade ETHBUSD)
  • Developing Subnets - The Avalanche Foundation recently announced a $290 million incentive program, dubbed “Multiverse,” to help develop subnets dedicated to blockchain gaming, DeFi, NFTs, and institutional use-cases on its network. (Trade AVAXUSDT)
  • High-Speed NFTs - Immutable concluded a $200 million funding round to develop its Layer 2 scaling platform and blockchain games. (Trade IMXUSDT)
  • Heading South - Fantom’s native token FTM took a major hit after DeFi architect Andre Cronje and his business partner said they would no longer be involved in the crypto market as developers. (Trade FTMUSDT)
  • Whales Buy - On-chain data shows that the balance held by addresses with 1 million to 10 million ADA rose to a new all-time high of 12 billion ADA, worth roughly $9.72 billion, representing a 41% increase since late January. (Trade ADABUSD)
* 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 furthermore, 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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