OTC Weekly Trading Insights (04/19/2023):
BTC & ETH both were off to a strong start this week, as BTC traded back above $30k on Tuesday with altcoins strongly following suit.
The narrative quickly changed midweek as we saw an increase in selling volume across our convert portal with BTC taking a sharp drop back below $29k.
The altcoin market still remains relatively strong with many still up double digits for the past 7 days. As we noted in the past week, many speculators rotated their holdings into altcoins looking to capitalise on these movements.
Whilst there are no new fundamental drivers for these movements, it can be attributed to the correlations found between BTC and altcoins. When BTC moves, Alts tend to follow in an exaggerated manner usually with a slight delay.
Despite strong past performance this year from $CFX, it is one of the worst performing coins this week currently down 16.1%, possibly signalling a reversal for the coin.
Trade our top 5 weekly coins of interest here!
Convert Portal Volume Breakdown
Our convert portal transactions remain consistent with last weeks; topping the list was Crypto to stablecoin transactions with a value of 32.36%. Again with BTC breaking through $30k, speculators will look to secure gains, possibly flipping short.
Stablecoin to crypto transactions placed 2nd with a value of 24.85% (+0.67%), as always to be expected with pumps and pullbacks, investors will continue to look for greater entry points in anticipation of further upside movements.
Crypto to crypto transactions have increased week on week with a value of 15.07%. As the market pulls back investors rotate holdings into the altcoin market expecting a delayed reaction to take place with altcoins rallying in the short term.
Options
The desk observed that the 25D skew on BTC options are moving down, especially on the 7-day expired ones. That could be caused by either traders being less willing to pay a higher premium on BTC puts or opening new call positions.
The desk notices that the 25D skew on ETH options are relatively flat after ETH soared over 10% after the Shanghai upgrade. The different moves on the 25D skew between BTC and ETH might indicate that capital rotates back to BTC soon.
Overall market technicals
BTC
After seeing periods of sustained upwards movement and breaking through $30k, BTC is seeing a slight correction as the market pulls back to a previous S/R level.
BTC is currently down 3.6% in the past 7 days. The week started off promising as BTC traded back above $30k, however was short lived as it swiftly made its way back below $29k.
During this sharp sell off over $300m worth of longs were liquidated, completely wiped out of the market.
Looking at the chart, BTC is currently trading at the range lows (a previous resistance level now turned support), bulls will need to step back in here in order for the level to hold with a chance of returning towards the highs.
Alternatively, if the level fails to hold the support level we marked out around $26k is a viable target.
ARB
ARB was one of the top performing coins this week currently up 26% in the last 7 days.
Following the initial hype set by the coin as it airdropped tokens to millions of users, the coin saw a period of sideways movement forming a support around $1.10.
Following the performance of BTC, ARB rallied above the previous high setting a new high around $1.80
This week ARB is still following the footsteps of BTC as it retraces back towards its previous resistance level / high. As it stands the bulls would need to step in for this level to hold or there is potential to trade back towards the previous range lows.
Macro at a glance
Last Thursday (04/13/2023), the US released a negative PPI reading for March, -0.5% month-over-month, lower than the estimated 0.1% and the previous month’s 0%. The number implies a continued slowdown in inflation, sending a positive signal to the market that the FED might not have to continue the rate hike aggressively. We see both equities and Bitcoins close in green, while ETH broke the previous resistance level at $1940 and soared over the $2000 level.
Last Friday (04/14/23), the -1.0% reading on retail sales raises market concern again on the US economic slowdown. Gold dropped 1.8% and traded below the $2000 key level. ETH continued its upward move and passed the $2100 level, driving the crypto space closed in the green zone.
Why trade OTC?
Binance offers our clients various ways to access OTC trading, including chat communication channels and the Binance Spot Block Trading platform for manual price quotations, or automated price quotations via our Binance Convert and the Binance Convert OTC API. For manual price quotations, you may visit our Spot Block Trading Platform, where you can RFQ (request-for-quote) and trade directly with our OTC trading team via a live chat, or reach out to us via our email at liquidity@binance.com for our trading desk to get in touch with you and get started.
Alternatively, OTC trades may also be automatically quoted on Binance Convert and via API, offering users a quick and simple way to execute trades across 60,000+ pairs with one simple click. Binance Convert supports over 350 tokens listed on the exchange including fiat pairs. Begin trading from as little as 1 USD. To start, simply navigate to the Binance Convert, select the coins you wish to trade, preview and confirm the quote with settlement reflecting almost instantly in your wallet balance. For details and access to Binance Convert OTC API, please refer to our Convert Endpoints and reach out to us at liquidity@binance.com if you have any questions or require assistance.
Visit Binance OTC and Execution Solutions to get more information on our OTC products and solutions.
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