August 16, 2021

​​$BTC 24 Hour High $47,860
$BTC 24 Hour Low $45,670
$BTC 1.8% past 24 hours; 7.7% past 7 days

Leverage picking up as markets test new local highs

Prices tested new local highs over the weekend. If we try to decode it via market psychology, chances are we are currently in a state of disbelief. The funding rates are starting to creep up, and leverage is making a return – the signs of this rally becoming overstretched are becoming more evident.

However, trading volumes have dropped over the last few days compared to the last two weeks (blue arrow in the chart). Whether the trading volumes will increase to be in sync with a solid rally is something that should be noted.

After breaking the resistance level at 45-46K, it now acts as $BTC’s support. $BTC jumped up and tested 48.2K on Saturday, before pulling back and finding support on the 200d MA. The 48-50K zone is a major resistance area for the short term. With lots of previous price consolidation, $BTC is ending at the psychologically important 50K mark. In our opinion, it would take significant buying power and effort to break through this level. It has been quite a while since $BTC arrived at 42K. While it would appear to be behind us for now , it could come back into the picture at any given moment. Our advice is don’t forget about it just yet as it only requires a pull back of around 10% to get there.

We see a similar trajectory for $ETH as it jumped up and found support from the bottom of the trading corridor that we reclaimed a week ago. But $ETH is repeatedly testing resistance at the 3300-3400 area now which we identified a while ago. Its previous resistance at 3160 was repeatedly tested over the last week but it is now broken and acting as support, which already happened for the first time yesterday.

Despite market fluctuations, over 50% of the world’s largest banks are invested in crypto and blockchain-related companies, according to a Blockdata report. Barclays is at the top of the list of the most active with 19 investments in blockchain firms, followed by Citi with nine, Goldman Sachs with eight and JPM with seven. Based on their findings, 23 out of the top 100 banks by AUM are building custody solutions, and one can see most banks are not willing to ignore the potential revenue streams.

Learn more from today’s Trader View video.

Digital assets market:

  • Total crypto market capitalization stands at $2.08T, +0.8% from yesterday
  • $BTC is down 0.1% at time of writing, support / resistance – 41,150 / 48,480
  • $BTC liquidations and funding: $125.69M, 0.0190% average
  • $ETH is up 0.1% at time of writing, support / resistance – 2,890 / 3,530
  • $ETH liquidations and funding: $70.16M, 0.0483% average

Alts and DeFi watch:

  • DeFi TVL: $83.76B
  • $ONE up 11.26% in the last 24 hours, up ~40.99% in the past week 
  • $SOL up 28.87% in the last 24 hours, up ~57.03% in the past week
  • $EOS up 6.57% in the last 24 hours, up ~39.59% in the past week
  • $VET up 4.63% in the last 24 hours, up ~43.77% in the past week

More news that caught our eye:

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

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 TwitterLinkedinFacebook, and Telegram.

Please refer to OSL’s relevant disclaimers and disclosures associated with this note, including restrictions on redistribution.