February 11, 2022

​​$BTC 24 Hour High $45,850  / Low $42,625   |   $BTC -1.7% Past 24 hours; +17.2% Past 7 days

$BTC consolidates at key level but not out of the woods yet

Good morning and happy Friday. $BTC finally saw a slight pullback after consolidating for several days, with support at $42,850 holding nicely. The crucial upside resistance at $45,600 is also holding firm. A pullback towards $41,750 is on the cards, and $BTC can even slide to the major resistance level at $39,700. That said, any price movements lower than this level seems relatively unlikely at this stage.

In terms of option expiries, it comes as no surprise that $BTC is trading tightly at this level. $43,500 is possibly the maximum pain point for option holders for the expiry today, with most of those losses being felt among put holders. The Call/Put ratio is now standing at 0.85. If we can break through the $46,000-50,000 area, we likely see a rapid move towards $53,500, the 1.618 Fibonacci retracement target for the current impulsive move. This price range is important because it is where the vast majority of trading activity has taken place over the last four or five months, according to the Volume Profile Visible Range (VPVR) indicator.

$ETH is now testing the 50W MA at $3,055 but feeling a little more pain than $BTC – the No. 2 digital asset traded 5% lower in the last 24 hours after retesting the local top at $3,270 on January 20. Prices are likely to retest $3,040, but may extend down to $2,850, the 0.618 Fibonacci retracement level of the current impulse move. For the bulls that believe a trend reversal is around the corner, it would be a great opportunity to place some bids. Keep an eye on the potential formation of a cup and handle pattern, which suggests a bullish price move upward. Either way, the downward trending resistance-turned-support line in place since December will likely be retested before prices can continue their impulse higher. 

Rumors have circulated that UBS’s asset management arm has been doing their due diligence on digital asset portfolio managers as more asset managers start delving into the space. Aptly named Hedge Funds Solutions (HFS), it has $43.8B under AUM (as of November 2021). It has ironed out some key issues surrounding this new/growing asset class as it entails coin custody, counterparty risk and ever-evolving regulations. HFS has yet to back any portfolio managers. Still, their efforts to vet managers cannot be ignored as it shows a strong willingness for TradFi professionals to participate in the digital asset complex.

Learn more from today’s Trader View video

Digital assets market:

  • Total crypto market capitalization stands at $2.03T, -4.6% from yesterday
  • $BTC is +0.49% at time of writing; 24H liquidations and funding rates: $100.54M, +0.00282% average
  • $ETH is +0.66% at time of writing; 24H liquidations and funding rates: $69.60M, -0.00766% average
  • Stablecoins market dominance: USDT 43.73%; USDC 29.04%; BUSD 9.81%; TerraUSD 6.29%; DAI 5.47%

Alts and DeFi watch:

  • DeFi TVL: $208.16B (+4.28% over last 24h)
  • $SOL -6.8% in the last 24 hours, +3.5% in the past week 
  • $SHIB -6.7% in the last 24 hours, +45.7% in the past week
  • $SAND -3.0% in the last 24 hours, +18.80% in the past week
  • $ENJ -6.3% in the last 24 hours, +16.6% in the past week

More news that caught our eye:

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

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