Altcoins sink as Powell admits recession is possible

$BTC 24 Hour High $20,863 / Low $20,332 |   $BTC -3.4% Past 24 hours; -10.2% Past 7 days

Good morning. $BTC battled with the psychological $20,000 level while altcoins tumbled upon Fed Reserve Chair Powell’s testimony. Powell revealed a soft landing would be very challenging, and a recession is certainly possible. The shares of crypto broker Voyager Digital (YOYG) also nosedived by 60% and triggered crypto-related equities sell-off after disclosing 675 million exposure to potentially insolvent hedge funds.

Despite the growing risks of global recession, both $BTC and $ETH held firmly above their respective $20,000 and $1,000 support levels overnight. Yet, its weekly (14 period) RSI remains deep in the oversold territories, with the next support at $18,500 and $17,700. Investors shall keep an eye on the weekly close as it signifies market directions in the coming week.

Looking at the previous bear markets in 2014 and 2018, $BTC tended to plunge by around 80% before a recovery. In this light, there is more room for further downside as $BTC has just slashed by 70% from its peak of $69,000 six months ago. Thus, $BTC may need to slide towards the $14,000 support levels before finally bottoming out. The Fear and Greed Index has remained in the extreme fear zone for one of the most prolonged periods to date.

Based on historical data, $ETH generally underperforms $BTC in the bear markets. Since its inception, $ETH only experienced one bear market in 2018, seeing a 95% drawdown from its peak of $1,400. Flashing forward, the No. 2 digital asset has only seen an 80% drop in prices from its ATH. If history repeats itself, $ETH will have more downside as well. Though the bulls have successfully defended the $1,000 support level over the past 24 hours, its RSI remains stagnated in the oversold zone.

Citi has chosen METACO as their partner to develop and trial digital asset custody capabilities. METACO’s technology and digital solutions will be integrated with Citi’s vast custody network to build a platform that allows clients to hold and settle digital assets such as BTC in a safe and regulated way. With digital currencies gaining more widespread acceptance, several states in the U.S. are scouting methods to include digital asset transactions into the operations of their respective financial institutions.

Learn more from today’s Trader View video.


Digital Assets Market:

  • Total crypto market capitalization stands at $924B, -3.9% from yesterday
  • $BTC is +0.21% at time of writing; 24H liquidations and funding rates: 54.75M, +0.00102%
  • $ETH is +0.42% at time of writing; 24H liquidations and funding rates: 50.23M, +0.03894%
  • Stablecoins market dominance: USDT 44.07%; USDC 36.42%; BUSD 11.21%; DAI 4.10%

Alts and DeFi watch:

  • DeFi TVL: $72.51B (-0.73% over last 24 hours)
  • $SOL -5.0% in the last 24 hours, -1.0% in the past week
  • $SHIB -7.7% in the last 24 hours, +9.8% in the past week
  • $SAND +4.5% in the last 24 hours, -2.3% in the past week
  • $ENJ +0.2% in the last 24 hours, -3.5% in the past week

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OSL Trader View is contributed by Terrance Leung, Tiffany Wee & Melvin Gallu.


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