Highlights From This Week

Updates

• Daily Options - Binance Options launched additional BTCUSDT and ETHUSDT Daily Options on May 15.
• USDⓈ-M Contracts - Binance Futures launched:
  • USDⓈ-M RAD perpetual contract on May 10 with up to 20X leverage.
  • USDⓈ-M UMA perpetual contract on May 10 with up to 20X leverage.
• Delist - Binance Futures Will Delist and Update the Leverage & Margin Tiers of USDⓈ-M APEBUSD Perpetual Contract on May 16.

Charts of the Week

Bitcoin Paralyzed By Low Liquidity And Whale Interest

• After setting lower highs and lower lows, Bitcoin has created a descending parallel channel on the daily chart.
• The recent lack of liquidity in the market and whales refraining to enter the market have caused Bitcoin to weaken, as it corrects and consolidates.
• BTCUSD may continue to be trapped in the downtrend if volume fails to pick up. The area of interest for traders may be at the 100-day Simple Moving Average (SMA) at $26,143, which acts as a key support for BTC.

Options Data Suggest Bitcoin May Continue To Hover Around $27,000

• Bitcoin options data indicates that the max pain price for Bitcoin is at $27,000, slightly lower than the current price.
• The Max Pain Price is usually an indicator of where BTC price could be headed as the option’s price will typically gravitate toward it, suggesting that Bitcoin price action may continue to be muted.

Bitcoin Funding Rate Mostly Positive Last Week

• The Bitcoin funding rate has remained positive most of the week – meaning that long position traders were dominant and were willing to pay funding to short traders.

Open Interest Rises

• On Binance Futures, the BTCUSDT Open Interest closed the week on May 14 at about 9% higher than the previous week ending on May 7.

Traders Are Optimistic

• On Binance Futures, the BTCUSDT Long/Short Ratio closed on May 14 at 1.83 as 64.65% of all Binance Futures accounts with an open position in BTCUSDT were net long, while the other 35.35% were net short. The Taker Buy Volume closed the week slightly higher than Taker Sell Volume.

News Roundup

• BTC Address Holding 1 BTC - The number of Bitcoin wallet addresses holding at least one whole BTC surpassed the one million mark on May 13, 2023.
• Texas Adds Crypto to State’s Bill of Rights - Texas State Legislators have voted in the favor of a bill that recognizes the right of individuals to possess, utilize and trade digital currencies as part of a range of mediums to be a legal tender for goods and services in the state of Texas.
• Long Term BTC Holders Selling - Bitcoin has hit a 10-month low in the number of spent outputs with a lifespan of 1 to 2 years, indicating that long-term holders are selling or transferring their coins.
• Japan Champions Web3 Advancements - Japanese lawmaker emphasizes the country’s leadership in Web3, with strong government support aiding the nation's progress in blockchain, metaverse, and NFTs.