August 9, 2021

​​$BTC 24 Hour High $45,242
$BTC 24 Hour Low $42,981
$BTC -2.1% past 24 hours; 8.8% past 7 days

​​Good morning. $BTC and $ETH have increased by 53% and 84% respectively, since Jul 21. The significant gains over such a very short time period suggests a pull back is very likely to occur in the short term. The funding rates are still very low, and we consider it a healthy sign for investors. It normally indicates that this rally has been led by spot purchases, meaning market participants are buying physical coins instead of jumping into the market using leverage.

In addition, the futures open interest is picking up, but the overall open interest is at a much lower level than it was when $BTC was previously at 45K for the first time earlier this year. 

$BTC broke through the downward-trending resistance line at 41K. It moved higher before changing direction and having tested the 45d MA. It’s also where the 200d MA is located. Now we need to test 41K as a new support area, before we can validate a move higher. If 41K fails to hold, we look to 36K as the next area of support.

$ETH is not alone where it broke through the local high around $2,850-$2,900 and continued towards $3,190 before changing course and beginning its pull back. The next area of support is the previously broken resistance level at $2,850-$2,900, followed by $2,600-$2,650 should the former level fail to hold.

With the EIP-1559 launch on the EGH network last week (August 5), more than $30M worth of ETH has been removed from circulation. This improvement program changes the way miners are rewarded. The previous auction-style based transaction fees are now switched to an algorithmically driven one to determine a more stable base fee. Burning fees also mean that miners can now only rely on two revenue streams: 1) selling their computing power to the network and earning ETH when winning a block; or 2) receiving tips from users looking to prioritize their position within the block.

Learn more from today’s Trader View video.

$BTC key levels

  • Resistance / Consolidation area during previous bull run $49-$50K
  • Resistance / Consolidation area during previous bull run / 200D MA $45-$46K
  • We are here – $43,420
  • Supply / Jun 15 high and 0.382 Fib Retracement $41-$41.5K
  • Support / Jun 29 local high $36,670
  • Support / 0.5 Fib Retracement $34,340

$ETH key levels

  • Resistance / 0.236 Fib Retracement $3,377
  • Resistance / price consolidation area $3,300
  • Resistance / new local high $3,200
  • We are here – $2,940
  • Support / May 26 high, $2,900
  • Support / Jun 15 high $2,635
  • Support / Jul 7 highs, $2,350-$2,400

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.