December 10, 2021

​​$BTC 24 Hour High $50,432
$BTC 24 Hour Low $47,441
$BTC -3.9% past 24 hours; -14.3% past 7 days

Sentiments weakening but still on track 

Good morning and happy Friday. The buying activity of $BTC remained weak overnight and continued to struggle below the $50K resistance level. The short-term bearish sentiment towards $BTC created ripples to other markets. Displaced annualized funding rates are sitting at around the 0 to -2% levels on average — a sharp contrast to the funding rates at 10-15% throughout the extremely bullish October and November. 

It has now been one month since $BTC set the ATH of $69K, and it should take a while before we see those levels again from where we are at now ($48K). As we’re heading into 2022, $BTC is likely to consolidate at around the $40K levels for a while, with the $30K levels a likely possibility. Moving average is relatively flat, signaling some indecisiveness in the markets. The $44-50K levels have historically been a highly-contested zone, and we should see a brief period of low volatility leading up to the end of the year. Key levels to watch are the local bottom of $42K, and $40K zone being the secondary support. $50K is now flipped into a key resistance level for $BTC, with trading volume steadily declining across multiple exchanges. 

The Ethereum Arrow Glacier Hard York has just been successfully implemented today, adding more bullish momentum to $ETH to outperform other digital assets. 200D MA is still trending upwards and sitting relatively comfortably in the middle of the $4,000 region. If $BTC fails to revive from its prolonged weakness, the bears may take over and pull the rest of the market down. We’ve seen $4,000 acting as strong support right down to $3,900. Beyond that, we could see $3,500 and potentially $3,000 acting as a final support level before it could be considered a bear market. 

$ETH/$BTC pair is now trading at the 0.086 levels. Despite minor movements, $ETH is still on a solid uptrend. $ETH has outperformed $BTC by more than 230% this year, and expect $ETH to continue to outperform heading into 2022. The Crypto Fear and Greed Index climbed to 29 today which still represents a good buying opportunity. Investors that are keen to play the long game may consider waiting until the historical bottoms with the index dropping to the 10-15 zone.

Learn more from today’s Trader View video.

Digital assets market:

  • Total crypto market capitalization stands at $2.38T, -5.8% from yesterday
  • $BTC is +2.34% at time of writing; 24H liquidations and funding rates: $100.37M, +0.00605%average
  • $ETH is +1.46% at time of writing; 24H liquidations and funding rates: $99.97M, +0.01557% average
  • Stablecoins market dominance: USDT 48.40%; USDC 25.71%; BUSD 8.64%; DAI 5.60%

Alts and DeFi watch:

  • DeFi TVL: $104.31B
  • $SOL -4.8% in the last 24 hours, -21.3% in the past week 
  • $SHIB -3.8% in the last 24 hours, -16.8% in the past week
  • $SAND +1.3% in the last 24 hours, -20.5% in the past week
  • $ENJ -7.3% in the last 24 hours, -23.0% in the past week

More news that caught our eye:

OSL Trader View is contributed by Terrance Leung, Stefan von Haenisch & Ethan Fu.

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