$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:
- Hong Kong’s unfriendly crypto rules boost rival efforts to attract BTC billionaires
- Former U.S. official criticizes SEC crypto regulations
- Congressman jokes about a Mongoose Coin: Now it exists
- Paraguay to look Into adopting BTC as tender
- Investors should not receive compensation for crypto losses, Says FCA’s CEO
- SOL reportedly hit by DDoS attack but network remains online
OSL Trader View is contributed by Terrance Leung, Stefan von Haenisch & Ethan Fu.
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