December 6, 2021

$BTC 24 Hour High $49,862
$BTC 24 Hour Low $47,745
$BTC -0.1% past 24 hours; -14.2% past 7 days

Indicators suggest markets have bottomed out

Good morning. Last Saturday was a gloomy day for $BTC as it nosedived by 20% within an hour, dropping from $52K to as low as $42K at one point. The shockwave wiped off over $600B from the crypto markets and turned them into a sea of red. Some attributed the sharp plunge to the uncertainty over the Federal Reserve’s hint at higher interest rates and global fears over the new Omicron variant. While market sentiment remains at the “Extreme Fear” zone at 18 based on the Crypto Fear and Greed Index, some long-term holders will see it as a market bottom and provide a prime ‘buy the dip“ opportunity.

$BTC steadied just below 50K, after crashing to the 0.618 Fib retracement level of the entire bull run since March 2020. The market has completely reset in terms of funding rates. The daily RSI is now above 30, suggesting $BTC was almost at an oversold state. The on-balance volume (OBV) volume has dropped below the support. If we don’t see an uptick in $BTC, we could see a repeat of the April plunge i.e., a large capital outflow. Thus $BTC needs to reclaim this level to confirm that any price increase is sustainable over the next few weeks. 

Thanks to lower funding rates, $ETH has recovered much quicker than $BTC after finding support at the 0.382 Fib retracement level between the Sept-low and Nov-high. With a neutral RSI below 50, we are now trading at a level seven days ago. In terms of support and resistance, $ETH remains relatively unchanged from last week, while the downward-trending resistance line acts as resistance. A reset of $BTC and the entire crypto market should help drive $ETH to new ATHs very soon. 

The U.S. House Committee on Financial Services announced several CEOs at major digital assets firms would speak at a hearing to discuss the future of the financial market on December 8. While some believe the outcome would spook the market, it’s not entirely bad news as increased regulations could come off the back of this. 

Learn more from today’s Trader View video.

Digital assets market:

  • Total crypto market capitalization stands at $2.4T, -1.1% from yesterday
  • $BTC is -1.71% at time of writing; 24H liquidations and funding rates: $67.79M, +0.00080% average
  • $ETH is -1.85% at time of writing; 24H liquidations and funding rates: $45.61M, +0.01487% average
  • Stablecoins Market Dominance: USDT 48.49%; USDC 25.93%; BUSD 8.60%; DAI 5.70%

Alts and DeFi watch:

  • DeFi TVL: $101.12B
  • $SOL -5.7% in the last 24 hours, -5.7% in the past week 
  • $SHIB -2.7% in the last 24 hours, -10.1% in the past week
  • $SAND -12.7% in the last 24 hours, -30.6% in the past week
  • $ENJ -12.6% in the last 24 hours, -32.1% in the past week

More news that caught our eye:

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

OSL is Asia’s most comprehensive digital asset platform providing brokerage, exchange, software-as-a-service and insured custody solutions to professional investors.

Home to one of the world’s largest and most experienced digital asset trading desks, OSL has its finger on the pulse of the market. The Trader View newsletter is a short, easily digested summary of market activity and eye-catching news of the day.

Feedback is important to us, and we’re keen to learn more about the types of insights and intelligence that matter to you most. Please share your thoughts with us.

And be sure not to miss future OSL news and insights by following us on Twitter, Linkedin, Facebook, and Telegram.

Please refer to OSL’s relevant disclaimers and disclosures associated with this note, including restrictions on redistribution.