February 17, 2022

​​$BTC 24 Hour High $44,579  / Low $43,311   |   $BTC -0.7% Past 24 hours; -1.1% Past 7 days

$ETH eyes $3,230 upside hurdle as markets turn more bullish

Good morning. A confluence of indicators shows that perhaps $BTC is gearing up for another move higher, despite sideways action in the past 24 hours. To sustain the bullish momentum, $BTC needs to continue holding two major support levels – $41,750 which it has been holding strongly for a week, and the 0.382 Fibonacci retracement level for the move between the November-high and January-low. 

The next real upside hurdle is at around $47,500 – the 0.5 Fibonacci retracement level between the November-high and January-low, and also the area that has seen the most trading activity since October 2021, as shown by the volume profile visible range (VPVR) indicator. The bulls have started to take more control as $BTC successfully retested $41,750. While this presents entry points for longs, some investors on the sidelines may choose to wait for more pronounced price action before doing so.

$ETH continued to trade around and above $3,000 this week, and is currently sitting on top of both the 50D MA and 50W MA where they are converging to render extra support. If the No. 2 digital asset successfully holds at these levels, they will become decent support for its next move higher. The 0.5 Fibonacci retracement level for May-high and July-low of last year also provides extra support. 

A break of $3,230 in the near term would serve as a bullish signal for $ETH to march higher. Stay cautious as considerably strong resistance is also building here at the same time. Not only has $ETH failed to breach this level last week, the significant resistance could also be shown by VPVR – this level has seen the highest level of trading activity since May. Should $ETH fail to hold, immediate support will be $2,870 and $2,720.

Interestingly, Colorado may become the first U.S. state to accept BTC for tax payments. Governor Jared Polis announced during a CNBC interview that the state planned to accept other government-related fees (e.g. hunting, driver’s license. etc.) in the digital asset and launch this payment option by mid-2022. Yet, the state didn’t plan to hold onto the digital asset due to its volatile nature nor convert it to USD in real-time. The governor first pitched the idea to Colorado residents last year.

Learn more from today’s Trader View video

Digital assets market:

  • Total crypto market capitalization stands at $2.08T, -1.4% from yesterday
  • $BTC is +0.13% at time of writing; 24H liquidations and funding rates: $32.27M, +0.00249% average
  • $ETH is +0.63% at time of writing; 24H liquidations and funding rates: $31.20M, +0.00260% average
  • Stablecoins market dominance: USDT 43.55%; USDC 29.09%; BUSD 9.82%; TerraUSD 6.49%; DAI 5.47%

Alts and DeFi watch:

  • DeFi TVL: $209.52B (+3.20% over last 24h)
  • $SOL -1.9% in the last 24 hours, -11.0% in the past week 
  • $SHIB +0.9% in the last 24 hours, -5.80% in the past week
  • $SAND -4.8% in the last 24 hours, -11.4% in the past week
  • $ENJ -0.9% in the last 24 hours, -9.7% in the past week

More news that caught our eye:

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.

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.