$BTC dives with U.S. futures, entering a new trading range

​​$BTC 24 Hour High $30,697 / Low $26,616 |   $BTC -5.4% Past 24 hours; +0.1% Past 7 day

Good morning. In the past 24 hours, the bullish momentum in the digital assets markets lost steam again and turned into an accelerated sell-off, erasing the gains from the last week. The overnight dump is partly due to the weakening of the Tradefi markets – the U.S stock saw the biggest drop in almost two years, and the futures sharped moved lower. Plus, retail giants Walmart and Target’s stock value hit a historical low since 1987 after poor earnings. As a result, the wider market conviction is trending incredibly low. 

As $BTC struggled to hold above $30,000, it retracted to a new trading range between $28,600 and $31,400. However, investors should stay cautious about the declining on-balance volume (OBV), which implies that trading activities are higher on down days than on up days. A continued grind lower or a break of $28,600 would likely lead to a test of support at $26,000, where the 50M EMA is located. 

$ETH is faring slightly worse than $BTC, which the former broke down through the short-term support at $1,950. The OBV is testing this key support level currently. We expect a short-term sell-off to pick up the pace if this fails to hold. As opposed to $BTC, we have yet to test the 50M EMA of the No. 2 digital asset. This currently comes in at $1,540, but it is just a matter of time before moving towards it. The crypto sentiment is hitting the lowest levels since March 2020, as the Fear & Greed Index dropped to the ‘extreme fear’ zone in the last three days. An imminent ‘V-shaped’ recovery is unlikely, so stay patient and don’t try to catch a falling knife at this stage.

Despite yesterday’s crypto dump, the Minister of Industry and Trade of the Russian Federation revealed its plans to legalize and regulate BTC and other digital assets in Russia. Legislation regarding digital assets regulation and the introduction of crypto tax are expected to be introduced this year. Given the growing concerns over systemic threats to the current financial system. Russian President Vladimir Putin is keen to push this forward though The Bank of Russia’s position sharply contrasts – as they would rather pursue a total ban on digital assets.

Learn more from today’s Trader View video.

Digital Assets Market

  • Total crypto market capitalization stands at $1.3T, -5.8% from yesterday
  • $BTC is +0.83% at time of writing; 24H liquidations and funding rates: 50.00M, -0.00881% average
  • $ETH is +1.13% at time of writing; 24H liquidations and funding rates: 96.99M, +0.00908% average 
  • Stablecoins market dominance: USDT 46.37%; USDC 32.76%; BUSD 11.52%; DAI 3.81%,UST 0.65%

Alts and DeFi watch:

  • DeFi TVL: $107.95B (-1.43% over last 24 hours)
  • $SOL -11.7% in the last 24 hours, +0.7% in the past week
  • $SHIB -7.1% in the last 24 hours, -2.6% in the past week
  • $SAND -12.0% in the last 24 hours, -7.6% in the past week
  • $ENJ -10.7% in the last 24 hours, +6.5% in the past week

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OSL Trader View is contributed by Hans-Stefan Vonhaenisch, Tiffany Wee & Ethan Fu.

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