10 trillion dollars. No, that's not the upcoming year's stimulus package, it's the total value of transactions completed on the Bitcoin blockchain since its inception. It's also proof (excuse the pun), that this new technology works and, in a watershed moment, has led the Office of the Comptroller of the Currency, which regulates US banks, to decree that banks can now start using blockchain technologies to perform what blockchains do best: moving money quickly and efficiently. RIP Swift, 3 days transfer times, and $15 bank fees...
Bitcoin prices rose as the announcement hit the wires, stabilizing the market following yesterday's drop. We are by no means out of the woods yet: As the market begins to track sideways and forms a new trading range, all eyes will be eagerly looking for a repeat of yesterday's fall as the market holds above $30,000.
Futures and perpetual volumes hit a new all-time record yesterday, as 2021 picked up where 2020 left off. Binance recorded $80B in transactions across its spot and derivatives products.
The only note of concern to arise from the record volumes was a decline in open interest. Futures OI was down 5%, while perpetual contracts OI unsurprisingly dropped 10% after the mass liquidations.
Big volumes with falling open interest is generally a sign of a market reversal. Given the rally we have witnessed over the last 4 weeks, a breather and some range bound trading isn't a bad thing.
Bitcoin has held between its two key levels today. On the upside, $32,030 protects the bears from another rush to all-time highs, while $29,370 keeps the dream alive for the bulls hoping this high print is the first of many this month.
Should we push up through $32,230, we look for resistance at $33,860 to slow the pace of the rally before $34,378 and a new ATH arrives.
On the downside, a break below $29,980 will see us quickly revisit $28,900, with $28,000 as the last of the support levels needed to be retained by the bulls to ensure the recent gains are not further eroded.
It looks like crypto isn’t correlated to traditional markets, at least not during this past session.
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