Chart of the week
Bitcoin bottoms below $20,000 after USDC loses peg
Bitcoin fell below $20,000 for the first time since January this year after two federally insured members of the Federal Reserve System – Silicon Valley Bank and Silvergate Bank closed within a week.
Analysts had expected BTC to retest $19,500, where the 200-day Simple Moving Average (SMA) also sits. The relative strength index (RSI) has also fallen to a low of 27, a level not seen since November 2022. The last time the RSI dropped to this level, Bitcoin created a double bottom pattern , followed by a 30% increase.
Bitcoin appears to have recovered quickly, reclaiming the 100-day SMA at $20,308 as support, a level that coincides with the 23.6% Fibonacci retracement.
Bitcoin Futures Annual Premium Fees Drop
Quarterly BTC contracts typically trade at a 5 to 10% annual premium in healthy markets, which began to decline on March 11, ahead of the USDC depeg.
Three-month Bitcoin Futures premiums have dropped as premiums fall below 0%. This shows a lack of leveraged buying demand for Bitcoin futures.
Market sentiment recovered quickly
According to the Crypto Fear and Greed Index, sentiment turned to “Fear” with a score of 33/100 for the first time in two months around March 12. Sentiment jumped to “Neutral” within a day with a score of 49/100 on March 13.
Source: Alternative.me
Open Interest dropped sharply
On Binance Futures, BTCUSDT Open Interest ended the week of March 12 at 7.31% lower than at the start of the week of March 6.
Traders are still quite active
On Binance Futures, the BTCUSDT Long/Short Ratio closed at 1.72 on Sunday March 12, equivalent to 63.21% of all Binance Futures accounts with open positions in BTCUSDT being net long, while 36. The remaining 79% are net short.
Other news
Blockchain for Banking - Nigeria's President-elect has released a manifesto that, if enacted, would enable the use of Blockchain technology and cryptocurrencies in the country's banking and finance sector.
Cryptocurrency market capitalization drops below $1 trillion - Recent events in the industry pushed the crypto market capitalization down below $1 trillion around March 10.
Korea invests in Metaverse - Korea plans to invest US$21 million in local services to utilize the metaverse and will establish a US$30 million metaverse fund to help startups expand their business.
Small Investor Sentiment Remains Strong - A recent survey indicates that consumer confidence in the future of cryptocurrencies remains strong despite recent volatility with 75% of respondents Q still "believes" in the future of the industry.
Highlights of the week
Women's Day
Binance Futures celebrates International Women's Day: Share your stories about the women who inspire you the most in crypto and participate in the action to win a total prize pool of 5000 USDT and Exclusive Binance Swags. More details here.
New listings
USDⓈ-M Contract - Binance Futures launches USDⓈ-M LQTY perpetual contract with up to 20X leverage.
BTCUSDT Options - Binance Options will list an additional BTCUSDT Monthly Options contract expiring on May 26, 2023 (UTC) at 15:00 on March 9, 2023 (UTC).
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