$BTC 24 Hour High $50,979
$BTC 24 Hour Low $47,243
$BTC +0.1% past 24 hours; -12.5% past 7 days
$ETH marches higher, $BTC looks shaken
Good morning. As the effect of pessimism and doubt grows, $BTC saw lower trending volumes after the recent massive pullback. The Crypto Fear and Greed Index now stands at 25 — a 9-point improvement from yesterday, but it is still hovering over the “Extreme Fear” zone. Conversely, $ETH is a totally different story, as evidenced by its speedy recovery in price.
$BTC continued to move sideways over the last 24 hours, converging at the 0.5 Fibonacci retracement level between the July 21-low and the November 10-high. Below us, we have the 200D MA and a downward-trending support line, constructed by the April and September local tops. Taking a step back, the overall market is actually not as worrying as imagined — $BTC was at $30K the last time we saw such high levels of fear and bearish technical indicators, but the price now is almost 60% higher.
The recent pullback is likely a healthy shake-out of leverage if we look at the Bitcoin dominance. As the numbers have hardly changed, this suggests that the capital outflow took place evenly across the industry. Once the market sentiment flips, we likely see a spike in Bitcoin dominance as investors exit smaller altcoins and rotate back into $BTC.
$ETH continues to push higher and massively outperforming $BTC. While the 2021 trading corridor acts as support from below, $ETH has attempted to break the downward-trending resistance line that we have closely monitored since November. At this rate, we wouldn’t be surprised to see prices chart higher towards $4,500. Key metrics reflected the rising trading volume to buy the dip is spot-driven. This leads us to conclude that $ETH will continue the strong run we have seen throughout the last six months.
A recent survey by Grayscale Investment revealed that for the first time, US retail investors are three times more likely to consider $BTC as a store-of-value investment, rather than as a currency. Over one-quarter (26%) of the investors have already owned $BTC. More than half (59%) of the respondents are interested in $BTC ownership — marking a notable increase from 2020 (55%) and 2019 (36%). Out of those who owned $BTC, slightly more than half bought within the last year.
Learn more from today’s Trader View video.
Digital assets market:
- Total crypto market capitalization stands at $2.3T, -5.90% from yesterday
- $BTC is +0.56% at time of writing; 24H liquidations and funding rates: $118.42M, -0.01408%average
- $ETH is +0.09% at time of writing; 24H liquidations and funding rates: $137.46M, +0.01261% average
- Stablecoins Market Dominance: USDT 48.53%; USDC 25.93%; BUSD 8.47%; DAI 5.66%
Alts and DeFi watch:
- DeFi TVL: $103.9B
- $SOL +2.8% in the last 24 hours, -5.0% in the past week
- $SHIB +7.9% in the last 24 hours, -16.6% in the past week
- $SAND +8.8% in the last 24 hours, -20.9% in the past week
- $ENJ +13.1% in the last 24 hours, -20.9% in the past week
More news that caught our eye:
- Japan to crack down on stablecoins
- Charlie Munger: More comfortable with the Chinese Communist Party than $BTC?
- OpenSea IPO plans met with criticism from NFT community
- ETH miners outpaces BTC miners in revenue for seventh straight month in November
- No meme coins in the crypto top 10 for the first time in almost a years
OSL Trader View is contributed by 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.
Please refer to OSL’s relevant disclaimers and disclosures associated with this note, including restrictions on redistribution.