December 23, 2021

​​$BTC 24 Hour High $49,595
$BTC 24 Hour Low $48,450
$BTC -0.8% past 24 hours; +0.7% past 7 days

$BTC fails to break $50K threshold

Good morning. $BTC inched towards $50K but the bulls failed to reclaim the significant level once again. Despite reaching a high of $49.6K, its trading volume dropped across most large exchanges, signaling a lean towards a more passive strategy. $45-46K still acts as a strong support level for the near term. $BTC’s RSI dropped to the mid-40s while the 200D MA is still holding strongly. Based on the longer-term Fibonacci retracement, the $42-43K level remains a key support for $BTC. It’s worth noting that a strong move in either direction from the current trading wedge, and sustained for several days could set the trend for 2022. 

Like $BTC, $ETH flirted with the critical threshold at $4,000 but has now retraced to the $3,900 area. The $3,600-3,700 region serves as the acting support, coupled with the longer-term support from the 200D MA (blue line). The longer-term bull market for $ETH remains intact, and it would have to trade closer to the 200D MA line to signal a bear market is in place. On a side note, ETH’s mining difficulty is now at its ATH – it started to emerge during the July dip where some miners found the act unprofitable. The Crypto Fear and Greed Index slipped once again, from 45 to 34 today. Overall, December has been a very choppy month, and hopefully volumes will come back by the new year.

Another round of rejection letters disapproving the applications of investment firms Kryptoin and Valkyrie for spot $BTC-based ETFs were shared by both via Twitter yesterday. The U.S. SEC has been delaying their decision since the start of the year, and showed no signs of reversing their wait-and-see approach for a futures-based ETF, let alone a spot-based one. A physical spot-based ETF holds $BTC and price track whereas a futures-based $BTC ETF tracks $BTC futures contracts. As long as the strong concerns over volatility and fraud within the cryptocurrency ecosystem continue unabated, the regulator is unlikely to decide anytime soon.

Learn more from today’s Trader View video.

Digital assets market:

  • Total crypto market capitalization stands at $2.41T, +0.3% from yesterday
  • $BTC is +0.12% at time of writing; 24H liquidations and funding rates: $25.57M, +0.00344% average
  • $ETH is +0.07% at time of writing; 24H liquidations and funding rates: $19.98M, +0.00859% average
  • Stablecoins market dominance: USDT 47.27%; USDC 26.00%; BUSD 8.87%; TerraUSD 5.79%; DAI 5.50%

Alts and DeFi watch:

  • DeFi TVL: $99.67B
  • $SOL -1.2% in the last 24 hours, +11.4% in the past week 
  • $SHIB +5.7% in the last 24 hours, +4.2% in the past week
  • $SAND -1.4% in the last 24 hours, +8.7% in the past week
  • $ENJ +5.7% in the last 24 hours, +12.1% in the past week

More news that caught our eye:

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

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