February 18, 2022

​​$BTC 24 Hour High $44,205  / Low $40,088   |   $BTC -8.2% Past 24 hours; -7.0% Past 7 days

$BTC plummeted over 7% to $40,088

Good morning and happy Friday. $BTC suddenly slid below $41,000 overnight as an impulsive move higher failed to extend the uptrend while losing the key support. This is the biggest daily slide in a month as $BTC and $ETH also dipped by over 7%. The No.1 digital asset is likely to slip further towards $39,100, the 1.618 Fibonacci retracement extension from the trading range of the last 10 days, and the previous resistance area that acted as the ceiling for price action, from the end of January to early February. 

Should $BTC fail to hold $39,100, the next support is $36,250. Keep an eye on this significant level as this may ultimately determine whether the bullish price action over the last few weeks was the start of a new leg higher, or it was indeed a bull trap. Funding rates are stretched among shorts as around $300M worth of longs were liquidated in the last 24 hours across the digital asset space. Put option holders will be rejoicing at the overnight move, with a decent chunk expiring in the money.

$ETH fared a touch better, finding support at the 0.618 Fibonacci retracement level for the impulsive run since late January. Though the support level at $2,855 is holding for now, $ETH may slide to $2,550 at least if we lose it. $2,550 is the 1.618 Fibonacci retracement extension of the trading corridor we have been in during February and the support level on February 4. In the past 24 hours, we witnessed a less aggressive move down on $ETH as funding rates remain relatively flat. 

The U.S. Justice Department announced to appoint Eun Young Choi as the first Director of the National Cryptocurrency Enforcement Team (NCET) to prosecute crypto-criminals, along with a team of cyber and legal experts. Deputy Attorney General Lisa Monaco announced this at yesterday’s Annual Munich Cyber Security Conference, along with a formation of a specialized team, Virtual Asset Exploitation Unit (VAXU), within the FBI that will work in tandem with the enforcement department. VAXU is tasked to conduct investigations on crypto crimes and seizure of digital assets.

Learn more from today’s Trader View video

Digital assets market:

  • Total crypto market capitalization stands at $1.93T, -7.3% from yesterday
  • $BTC is -0.14% at time of writing; 24H liquidations and funding rates: $132,79M, +0.00249% average
  • $ETH is -0.52% at time of writing; 24H liquidations and funding rates: $76.89M, +0.00260% average
  • Stablecoins market dominance: USDT 43.49%; USDC 29.08%; BUSD 9.94%; TerraUSD 6.54%; DAI 5.41%

Alts and DeFi watch:

  • DeFi TVL: $202.14B (-3.60% over last 24h)
  • $SOL -8.1% in the last 24 hours, -12.0% in the past week 
  • $SHIB -8.8% in the last 24 hours, -8.3% in the past week
  • $SAND -10.5% in the last 24 hours, -14.7% in the past week
  • $ENJ -11.5% in the last 24 hours, -12.8% 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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