Futures Weekly Wrap (Jul 18th-Jul 24th): Cryptos Reach Critical Resistance
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Chart of the Week
Note: Several fundamental events are happening during the week of Jul 25th to July 31st that could increase price volatility in the cryptocurrency market. The Federal Open Market Committee (FOMC) is expected to announce a spike in interest rates, five big tech companies, including Apple, Microsoft, Alphabet, Amazon and Meta, will release their earnings reports, and the US Bureau of Economic Analysis will release its advance estimate of economic growth for Q2 2022.
Low Network Usage
- The total transaction fees on the Bitcoin network can serve as an indicator of on-chain activity. Although different mechanisms to lower transaction fees have been implemented, such as SegWit, batching transactions and the Lightning Network, this metric tends to rise during periods of growth.
- Over the past year, the total transaction fees on the Bitcoin network have remained flat at an average of 12.5 BTC per day, suggesting that network usage continues to decline despite the price volatility.
- At about $22,586.22 on Sunday, Jul 24th, Bitcoin appears to be facing rejection at a crucial area of resistance.
- From a technical perspective, the 200-week moving average is preventing Bitcoin from advancing further. Only a decisive weekly close above this hurdle can lead to higher highs.
- Until that happens, Bitcoin may continue to consolidate around the $20,000 level or even print a new lower low.
Traders Slightly Optimistic
- On Binance Futures, the BTCUSDT Long/Short Ratio increased over the past week to close on Sunday, Jul 24th, at a ratio of 1.23.
- Traders appear to be leaning bullish as 55.822 of all Binance Futures accounts with an opened position in Bitcoin are net long.
Weekly Market Movers
* 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.
- The Merge - Tim Beiko, Protocol Support for the Ethereum Foundation, revealed that Sept 19th is the provisional launch date for the Merge, which will see the blockchain transition from the energy-intensive Proof-of-Work consensus mechanism to a more environment-friendly Proof-of-Stake mechanism. (Trade ETHBUSD)
- Network Activity - Active wallets on the Solana network grew 58% this year, outpacing some other blockchains despite a market-wide price decline. New users peaked at over 400,000 in May before gradually declining to 240,000 over the past week. (Trade SOLBUSD)
- ZK Rollup - Ethereum scaling solution Polygon announced the launch of Polygon zkEVM, which the company described as the “first Ethereum-equivalent scaling solution that works seamlessly with all existing smart contracts, developer tools, and wallets, harnessing advanced cryptography called Zero-Knowledge proofs.” (Trade MATICBUSD)
- Crypto Contagion - Leading global bank Citi said that with numerous brokers and market makers making counterparty exposure disclosures, Celsius filing Chapter 11, and staked Ether (stETH) returning towards parity, it is likely crypto contagion fears have peaked in the interim.
Highlights From This Week
Take Part in This Week’s Activities
- Liquidity Provider Program - Binance is upgrading the USDⓈ-Margined Futures Liquidity Provider Program, where qualified liquidity providers can now enjoy higher maker fee rebates of up to 0.005%.
- New Chat Room - Binance Futures launched the Strategy Trading (Grid Trading) Chat Room. Answer the questions pinned in this Chat Room before Jul 31st to grab a share of 3,000 BUSD in Futures Bonus Vouchers.
- Taker Program - Binance Futures is launching the Taker Program with up to a 20% taker fee discount for all USDT-margined perpetual and delivery contracts starting on Aug 1st.
- Fee Discount - Binance Futures extended the fee discount for BUSD-Margined trading pairs for all new and existing users until Aug 31st.
- 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.
Read Our Latest Blog Post
- How to Interact With Experienced Traders in Binance Futures - Binance Futures makes it easy for everyone to share news, insights, strategies and thoughts about the cryptocurrency market. We have built different features that allow traders to communicate and help each other succeed, including the Chat Room, Leaderboard, and Binance Live.
Trade Our New Listings
- BUSD-M Contracts - Binance Futures launched BUSD-Margined FIL, 1000SHIB and LEVER perpetual contracts with up to 20x leverage.
- Borrowable Asset - Binance added LEVER, OGN and TVK as new borrowable assets on Cross Margin and LEVER as a new borrowable asset on Isolated Margin.
- Tick Size - Binance Futures will adjust the tick size of JASMY USDⓈ-M perpetual futures contracts to increase market liquidity and improve the trading experience on Aug 1st.
- European Options - Binance will conduct a product upgrade for European-style Options by the end of Q3 2022.
* 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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