December 14, 2021

​​$BTC 24 Hour High $50,218
$BTC 24 Hour Low $45,728
$BTC -6.8% past 24 hours; -5.4% past 7 days

$BTC and $ETH sink again ahead of Fed Reserve meeting

Good morning. The digital assets saw a sea of red as investor jitters grew over the upcoming U.S. Federal’s decision on rising interest rates and slowing bond purchases. $BTC dropped by over 7%, the biggest daily percentage drop since the December 4 plunge. 

Based on on-chain analysis, expect $BTC and $ETH to go through a period of consolidation driven by record low reserves on exchanges and ATH hash rates. Bearish sentiment shown by these indicators suggesting a sell-off may continue, but the bear market hasn’t arrived yet. Given low funding rates, it’s highly unlikely that forced liquidations dominated the selling pressure. 

$BTC failed to hold $50K and dropped below support at $47.5K (200-Day MA) and the 50-Week MA was below $46.5K as well. Despite $BTC’s aggressive move lower on intraday basis, it seems to be a conscious sell-off instead of forced liquidations, given low funding rates in either direction. $BTC pullback to the USD Index (DXY) has become less negative, and less positive to major equity markets — suggesting that traditional markets and the digital asset markets are decoupling once again. Keep an eye on the RSI and a cross of the two EMAs on the MACD indicator for signals that a rebound may be around the corner. Considering today’s plunge, these buy signals may take a few days to develop.

$ETH broke its resilience and fell sharply to retest the upward-trending support line at $3,880 while moving into the lower part of its trading channel. The 111-Day MA failed to hold as well, meaning we look towards $3,500 as the next main support area, followed by $3,200. Nevertheless, the price consolidation will set us up for a next move higher.

For the first time, banking titans HSBC and Wells Fargo leveraged blockchain to complete cross-border fiat settlements in USD/CAD/GBP/EUR on Monday. They opted to use a shared settlement ledger platform running on Baton System’ Core-FX, and this allows for 24/7 settlement without cut-off timing restrictions, agreed upon settlement frequencies throughout the day and the settlement process can be completed in three minutes. This marks a milestone for the banking industry to embrace blockchain for settlements.

Learn more from today’s Trader View video.

Digital assets market:

  • Total crypto market capitalization stands at $2.24T, -7.7% from yesterday
  • $BTC is -0.42% at time of writing; 24H liquidations and funding rates: $126.96M, -0.00523% average
  • $ETH is -0.26% at time of writing; 24H liquidations and funding rates: $147.93M, -0.00505% average
  • Stablecoins market dominance: USDT 48.23%; USDC 25.88%; BUSD 8.60%; DAI 5.53%

Alts and DeFi watch:

  • DeFi TVL: $96.97B
  • $SOL -10.5% in the last 24 hours, -20.8% in the past week 
  • $SHIB -10.3% in the last 24 hours, -9.3% in the past week
  • $SAND -13.1% in the last 24 hours, -11.7% in the past week
  • $ENJ -14.5% in the last 24 hours, -14.5% in the past week

More news that caught our eye:

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

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