$BTC 24 Hour High $42,629
$BTC 24 Hour Low $39,603
$BTC -4.1% past 24 hours; +12.7% past 7 days
Good morning. The weekend’s price action saw a rotation from BTC to ETH as the largest cryptocurrency’s rally ran out of steam. As highlighted last week, BTC’s price action broke out from the trading range before finding resistance at the downward trending resistance line and 111d MA. Prices have since pulled back by around 5%, suggesting this price action was more of a fake-out. We continue to view the 36K area as a level of support where prices ought to consolidate and prepare for the next big move up.
$ETH continued its strong run, hitting a multi-month high of $2,699. We are now seeing prices take a breather, in line with technical indicators that suggest the market is overbought. We’d like to see a retest of $2,350-$2,400 area, the previous level of resistance. A test at this level and confirmation of a flip from resistance to support could prepare ETH well for the next big leg-up. Should this level fail to hold, we see the next support area at $2,100-$2,150.
The initial impact of miners being forced out of mainland China has caused hashing and difficulty rates to fall recently. This presents a unique opportunity for the western hemisphere miners to pick up the slack and be better rewarded for their efforts. A recent article estimated that profitability will increase by around 35% after adjusting for difficulty as equipment prices continue to fall and existing miners with cheap energy contracts continue to absorb the flow from the east without much competition.
Learn more from today’s Trader View video.
Digital assets market:
- Total crypto market capitalization stands at $1.66T, -2.2% from yesterday
- $BTC is down 0.3% at time of writing, support / resistance – 39,500 / 42,615
- $BTC liquidations and funding: $196.63M, -0.0114% average
- $ETH is down 0.5% at time of writing, support / resistance – 2,520/ 2,838
- $ETH liquidations and funding: $146.55M, -0.0079% average
Alts and DeFi watch:
- DeFi TVL: $70.78B
- $QNT up 37.11% in the last 24 hours, up ~93.93% in the past week
- $LUNA up 10.37% in the last 24 hours, up ~38.58% in the past week
- $FLOW down 9.25% in the last 24 hours, up ~10.59% in the past week
- $DOT down 2.19% in the last 24 hours, up ~29.87% in the past week
More news that caught our eye:
- Ukraine Central Bank now officially allowed to issue digital currency
- State Street to offer crypto services to private-fund clients
- Escrow company issues first-ever BTC-backed real estate loan
- GoldenTree asset management is reportedly investing in BTC
- PayPal to invest in crypto support
OSL Trader View is contributed by Emilia Lee, Ethan Fu & Stefan von Haenisch.
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