January 3, 2022

​​$BTC 24 Hour High $47,770
$BTC 24 Hour Low $46,768
$BTC +0.4% past 24 hours; -6.8% past 7 days

2022 kicks off with sideways action

Good morning and Happy New Year! It was a banner year for digital assets in 2021, with plenty of ATHs being achieved, most notably $BTC hitting $68K, $ETH up by 400%, and $SOL’s mind-blowing 10,000% jump year on year. Despite a slow start, the market should reach new heights in the new year. 

$BTC continued to trade sideways, with support at $45.5K still holding as it did for the majority of December. Prices found themselves in a trading channel defined by the 0.236 ($46.5K) and 0.382 ($50.7K) Fibonacci retracement levels between the September-Low and November-high. After bottoming out in December, the RSI witnessed a positive momentum build-up. Any price moves above $52.5K would start waking the bulls up.

$BTC’s balance on exchanges has grown significantly over the last seven days, with the U.S. seeming to be going the over route and seeing larger outflows over the same time period. The key question now is whether all inflows have been sold, or if there is more selling pressure to come. Be cautious that we could see a pretty drastic capitulation into the low $40Ks if $BTC fails to hold $45.6K. That said, while large-scale institutional selling took place throughout December, any short-term dips would present good buying opportunities in what remains to be a bullish outlook over the coming months. 

Over the last few days, $ETH has traded at the lower end of the trading corridor in place since the beginning of December pullback. Though it attempted to push higher, there is not much to cheer about until we start to ask questions of the resistance at $4,165. It’s a good sign though that the funding rates of $ETH are still flat across the board. Thus, we would expect the latest price gains to be driven from spot purchases, rather than by leverage in the perpetual swap markets. In the past few days, several of these fake-outs to the downside already took place as we predicted last week – $ETH dipped towards $3,600 before a swift recovery.

El Salvador’s millennial president Bukele made his bold 2022 predictions – $BTC will more than double to $100K in 2022; two more countries will adopt $BTC as legal tender; and digital assets will be a major electoral issue in the mid-term U.S. elections. Besides, both New York and Miami mayors are currently campaigning for their cities to be crypto hubs, and promising to take their pay in $BTC, and courting would-be investors.

Learn more from today’s Trader View video

Digital assets market:

  • Total crypto market capitalization stands at $2.37T, +1% from yesterday
  • $BTC is -0.23% at time of writing; 24H liquidations and funding rates: $36.46M, +0.00924% average
  • $ETH is -0.20% at time of writing; 24H liquidations and funding rates: $22.82M, +0.00188% average
  • Stablecoins market dominance: USDT 47.21%; USDC 25.65%; BUSD 8.80%; TerraUSD 6.11%; DAI 5.43%

Alts and DeFi watch:

  • DeFi TVL: $100.58B
  • $SOL -2.5% in the last 24 hours, -11.3% in the past week 
  • $SHIB -0.9% in the last 24 hours, -11.7% in the past week
  • $SAND -0.8% in the last 24 hours, -11.50% in the past week
  • $ENJ +4.5% in the last 24 hours, -10.40% in the past week

More news that caught our eye:

OSL Trader View is contributed by Stefan von Haenisch & Ethan Fu.

OSL is Asia’s most comprehensive digital asset platform providing brokerage, exchange, software-as-a-service and insured custody solutions to professional investors.

Home to one of the world’s largest and most experienced digital asset trading desks, OSL has its finger on the pulse of the market. The Trader View newsletter is a short, easily digested summary of market activity and eye-catching news of the day.

Feedback is important to us, and we’re keen to learn more about the types of insights and intelligence that matter to you most. Please share your thoughts with us.

And be sure not to miss future OSL news and insights by following us on Twitter, Linkedin, Facebook, and Telegram.Please refer to OSL’s relevant disclaimers and disclosures associated with this note, including restrictions on redistribution.