$BTC 24 Hour High $48,687
$BTC 24 Hour Low $46,300
$BTC +3.6% past 24 hours; -4.2% past 7 days
Sideways game continues as support holds
Good morning. $BTC recovered some losses on Monday and rallied higher, with a daily close below the three support levels — the 200-Day MA ($47.4K), 50-Week MA ($46.8K) and the 0.5 Fibonacci retracement ($46.8K) between April-high and June-low that we previously identified. It is evident to us that we are trading in a downward-trending corridor so expect sideways actions in the next few days.
Intraday, the first short-term test for $BTC is at $48K, followed by a test of the 0.618 Fibonacci retracement between April-high and June-low at $51K. Before the daily MACD indicator flashes a “buy” signal, it’s important to look for a break-out of the daily RSI above 40. The indicator action would be similar to what we saw on July 20 when $BTC dropped below $30K leading up to a multi-month run higher.
With price retracing below $3,700 on multiple occasions, $ETH also found some relief at last after finding support at the 0.5 Fibonacci retracement of the September-Low November-High. The upward trending support-turned-resistance line is currently at $3,900, but $ETH appears to be lacking enough strength to move higher in the short term. As one usually sees successful retests of support levels when the price moves higher, the same retest of new resistance levels occurs when the market drops.
The bulls might have to wait as fewer indicators suggest that immediate upside is around the corner for $ETH. The RSI has been steadily declining since November 15 and the deviation between the two MAs on the MACD indicator is growing. That said, $ETH has been much healthier than $BTC recently, and it’s expected to move in tandem with $BTC if we break out higher.
The prices of the $BTC and $ETH rose slightly with market participants betting on a “buy the news” event as a key U.S. Federal Reserve meeting will take place later today. It is widely expected that interest rates will be raised although the pace in which the central bank will wind down its giant asset purchase program (QE) remains uncertain. This quantitative easing has been acting as key support for investable assets, propping up the stock market and arguably the price of digital assets.
Learn more from today’s Trader View video.
Digital assets market:
- Total crypto market capitalization stands at $2.3T, +2.1% from yesterday
- $BTC is +3.57% at time of writing; 24H liquidations and funding rates: $45.29M, -0.00523% average
- $ETH is +1.97% at time of writing; 24H liquidations and funding rates: $43.09M, -0.00505% average
- Stablecoins market dominance: USDT 48.13%; USDC 25.97%; BUSD 8.60%; DAI 5.48%
Alts and DeFi watch:
- DeFi TVL: $96.73B
- $SOL +4.2% in the last 24 hours, -16.90% in the past week
- $SHIB +3.0% in the last 24 hours, -8.3% in the past week
- $SAND -0.4% in the last 24 hours, -13.4% in the past week
- $ENJ +1.9% in the last 24 hours, -19.0% in the past week
More news that caught our eye:
- U.S. Senate candidate: BTC can bring power back to the people
- $243B sovereign wealth fund CEO: I’m no longer a crypto skeptic
- Data suggests $46K as $BTC’s final line in the sand
- Despite recent downtrend, BTC netflows largely remain negative
- Brazil’s only stock exchange, B3 to test the crypto-waters amid rising interest
OSL Trader View is contributed by Stefan von Haenisch & Ethan Fu.
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