$BTC firmly holds above $20K. Has it bottomed out yet?

$BTC 24 Hour High $21,036 / Low $19,367 |   $BTC +0.8% Past 24 hours; -23.1% Past 7 day

Good morning. The digital asset market had a Monday relief bounce amid a jump in the broader equities markets. While $ETH changed hands above $1,100, $BTC firmly clenched to the $20,000 handle. Given the current macroeconomic headwind and sour market sentiment, investors are unconvinced that the recent rally has already demolished the fundamental bearish structure.  

Like yesterday, $BTC remains trading in the $20,000 range, with no significant capitulation has taken place so far. The volatility resulting from massive liquidations and significant buying below key levels over the weekend has started to slow down too. The daily (14-period) RSI is still in the oversold zone, rebounding from 22 to 29. However, we remain bearish on its short-term prices, and investors should look out for its 2017 and 2019 highs ($20,000 and $14,000, respectively) as key support levels. Should we lose the psychological $20,000 level, $BTC will likely slide towards $19,300 or even $18,500. Looking at the extremely steep decline slope from $BTC’s top ($69,000), a slowdown in decline will occur before the macro trend changes.

Currently, $ETH is trading at $1,100, with RSI remaining deeply rooted in the oversold zone. Should the bulls reclaim the $1,500-$1,800 range, we may see more buying activities returning to the markets. That said, we would like to see the decline slope get flattened first. Before we see a major rebound, $ETH is likely to even slide towards the $800-900 zone.

In other news, the U.K. is backtracking its blanket requirements for digital asset companies to share personal information on all transfers made to unhosted wallets. While the treasury report acknowledges the industry‘s privacy concerns, its stance largely differs from the European Union’s, which banned transfers to anonymous wallets in March this year. The recommendations in the U.K. treasury report will commence from September 2022, following the green light from the parliament.

Learn more from today’s Trader View video.

Digital Assets Market:

  • Total crypto market capitalization stands at $943B, -0.2% from yesterday
  • $BTC is +0.39% at time of writing; 24H liquidations and funding rates: 75.42M,+0.00341%
  • $ETH is +0.64% at time of writing; 24H liquidations and funding rates: 66.30M, +0.03015%
  • Stablecoins market dominance: USDT 44.22%; USDC 36.33%; BUSD 11.17%; DAI 4.09%

Alts and DeFi watch:

  • DeFi TVL: $72.71B (+3.61% over last 24 hours)
  • $SOL +4.6% in the last 24 hours, +15.5% in the past week
  • $SHIB -0.4% in the last 24 hours, -6.0% in the past week
  • $SAND +2.7% in the last 24 hours, -9.2% in the past week
  • $ENJ +5.3% in the last 24 hours, -7.3% 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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