Bitcoin Bounces Back

Bitcoin is currently trading around $77,700, marking a 1.8% increase since midnight UTC. This follows a rebound from a previous resistance level of $75,650 that was pivotal during last week’s price surge.

This rebound could indicate a bullish shift, with key support resting at $75,650, which may be crucial as Bitcoin looks to challenge the $80,000 mark.

On the other hand, Ether (ETH) is priced at $2,344, showing more bearish signals compared to Bitcoin. It has hit a series of new lows since April 17.

The overall market appears to be on the rise, largely due to US investors anticipating significant returns from tech stocks. Major companies like Alphabet, Microsoft, Amazon, and Meta are expected to release earnings after Wednesday’s closing bell.

In premarket trading, Nasdaq 100 futures gained 0.25%.

Derivative Market Insight

• Bitcoin futures open interest has dropped to 715,600 BTC, the lowest level since April 9 and significantly down from the monthly peak of 800,000 BTC. This decline suggests that spot price growth is slowing around the $80,000 mark. Some analysts caution that the bear market could persist, but Bitcoin is gradually reducing risk.
• Over the past 24 hours, open interest has remained mostly steady across ETH, SOL, and XRP.
• Traders have pumped money into DOGE futures, with open interest climbing 18% in one day to 16.06 billion tokens, the highest since October 10.
• With perpetual funding rates stable at about 4% per year and the cumulative volume delta adjusted for open interest being the highest among major tokens, DOGE’s surge appears driven by new investments rather than excessive leverage, indicating ongoing bullish sentiment.
• Futures for SHIB on Binance are reflecting a similar positive trend. Increased trading in these less serious tokens hints at speculative bubbles forming, which could prelude broader market downturns.
• The oil futures market on Binance is also heating up, seeing a 27% increase in open interest as prices surpass $100, which may create headwinds for risk assets, including cryptocurrencies.
• Bitcoin’s 30-day Implied Volatility Index (BVIV) continues to dip, currently nearing a three-month low below 42%. This trend shows reduced sensitivity to macro risks like the situation in Iran and rising oil costs. The Ether volatility index (EVIV) reflects a similar pattern.
• The options market on Deribit remains unchanged, with both BTC and ETH put options still priced higher than calls, indicating ongoing downside concerns, particularly for Bitcoin.

Altcoin Updates

• The altcoin market displayed signs of resilience on Wednesday, buoyed by previously oversold conditions.
• The CoinDesk Memecoin Select Index (CDMEME) led the benchmarks, climbing 2.3% since midnight UTC, while the DeFi Select Index (DFX) increased by 2.2%.
• Bitcoin-centric indices, including the CoinDesk 20 (CD20) and CoinDesk 5 (CD5), both rose by 1.7%.
• Popular meme coins like DOGE, PEPE, and FLOKI were among the top performers on the CoinDesk 100 (CD100), rising 10%, 6.3%, and 6.2%, respectively.
• CoinMarketCap’s ‘Altcoin Season’ indicator ticked up from 39/100 to 41/100 overnight, reflecting the sector’s relative strength.