December 8, 2021

​​$BTC 24 Hour High $51,943
$BTC 24 Hour Low $50,239
$BTC +0.16% past 24 hours; -12.5% past 7 days

Risk-on sentiment fuels crypto market rebound

Good morning. $BTC finally reclaimed the $50K area and consolidated above it, with crucial support at $47K holding. This can be attributed to capital inflows, not only into the digital asset markets but also the wider equities space. $BTC’s correlation with S&P 500 at 0.62, Dow Jones 0.73 and a remarkable 0.84 with the Russell 2000 now.

$50.83K is the key level $BTC needs to hold next, the 0.382 Fib retracement between Sept-low and Nov-high. If we break this support, the immediate support will be $47.5K (200D MA). A retest of the newly reclaimed support at $50K is much needed before grinding higher to the $54K zone. If $BTC follows the price action of the July and August run, it would be a more accurate signal to confirm that the bull market is far from over.

After a month of sideways trading, we need to start seeing $ETH making more persuasive moves in one direction, preferably towards the $4,800 region. Price moves towards $4,000 would signal that $ETH may continue trading sideways for a while longer. If $ETH’s recovery follows the textbook of a bull run we mentioned in October with RSI rebouncing into the high 50s, we can confirm with some confidence that this bull run will continue.

Brazil’s biggest investment bank BTG Pactual announced the launch of a multi-market fund with exposure to $ETH. Named “BTG Pactual Reference Ethereum 20”, the fund has 20% exposure to $ETH with the balance allocated to fixed income assets. A low entry barrier of 100 Brazilian reais (~US$18) as a minimum investment, along with a 0.5% annual administrative fee, should stoke a lot of interest in an already welcoming Latin American retail environment.

Learn more from today’s Trader View video.

Digital assets market:

• Total crypto market capitalization stands at $2.48T, -0.5% from yesterday
• $BTC is +0.5% at time of writing; 24H liquidations and funding rates: $49.88M, +0.00907%average
• $ETH is -0.9% at time of writing; 24H liquidations and funding rates: $22.95M, +0.01499% average
• Stablecoins Market Dominance: USDT 48.59%; USDC 25.82%; BUSD 8.52%; DAI 5.64%

Alts and DeFi watch:

• DeFi TVL: $105.26B
• $SOL -2.1% in the last 24 hours, -8.8% in the past week 
• $SHIB -1.8% in the last 24 hours, -23.3% in the past week
• $SAND -3.5% in the last 24 hours, -21.4% in the past week
• $ENJ -3.2% in the last 24 hours, -19.8% in the past week

More news that caught our eye:

• $ETH gets another upgrade: What you need to know about Arrow Glacier
• Bitget suspended in Singapore for refusing to remove BTS-themed coin
• Dan Tapiero’s crypto investment firm 10T is raising $500M for a third digital assets fund
• CIA confirms the rumors: It really is working on crypto currency projects
• Under-the-radar altcoin built on Tron jumps nearly 80% after announcement of Mainnet launch

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