December 31, 2021

​​$BTC 24 Hour High $47,978
$BTC 24 Hour Low $46,629
$BTC +1% past 24 hours; -7% past 7 days

Expect volatility ahead of today’s 10.7B option expiry

Good morning! 2021 has been a wild ride for digital asset markets overall. Though $BTC failed to finish the year at $100K as the market anticipated, the overall market continues to outperform both gold and stocks for the third year in a row.

Over the last 24 hours, $BTC established $46K as support and hovered around $47K. It is the maximum pain price for today’s option expiry at 4pm (HKT/SGT), the strike price that brings maximum loss to option buyers. Stay cautious and expect higher volatility throughout the day. As seen on the chart, $45-46K remains the major support (yellow trendline), whereas the next major resistance at $48K (blue trendline) is where the bears might emerge. More gains could send $BTC to test the critical level at $50K. Apart from an elevated possibility of a leveraged squeeze, trading volumes remained muted as well. The funding rate average stood above 3% per annum.

After testing the $3,600 support, $ETH bounced back above the $3,700 level. The key bearish trendline is forming with resistance near $3,760, which is 50% Fib retracement from the September-low and November-high. To avoid more downsides in the near term, $ETH must stay above $3,500. Losing this support could send prices towards $3,200, the maximum pain price of today’s expiry. $ETH’s RSI is at the oversold zone, with funding rates averaging 3% per annum across major exchanges.The total Open Interest has almost doubled this year, from $9.57 billion to a total of $18.64 billion. The last week of 2021 alone saw an increase of some $2.5 billion in open interest, meaning market participants are still deeply involved in the market. The market sentiment has slightly improved from “Extreme Fear” from yesterday to “Fear” today, as indicated by the Crypto Fear & Greed Index. Happy trading! Wishing you a Happy New Year ahead.

Learn more from today’s Trader View video.

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

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