February 8, 2022

​​$BTC 24 Hour High $44,524  / Low $42,267   |   $BTC +5.0% Past 24 hours; +13.5% Past 7 days

Bullish price action continues; market health returns

Good morning. The market sentiment has become more upbeat as $BTC stabilized above $43,000. According to the Crypto Greed & Fear Index, the market sentiment has shifted from the “Fear/Extreme Fear” to the “Neutral” for the first time in 6 weeks. 

As $BTC reached $44,500 overnight, we don’t need to worry about forming a possible five-leg down structure that we discussed yesterday. A price slide towards $30K is relatively unlikely at this stage, although not entirely impossible. Instead, it seems like this uptrend move signals the start of a new impulse higher towards our upside target of $53,500 before we see a potential pullback. $BTC’s price movement over the last week seems to be a bull-trap – if it breaks the key support at $40,000, we could see a sharp move down to $36,000. Support is forming at $41,765 and at $39,700, which can provide decent top-up opportunities for the bulls to add to their longs.

The Fibonacci retracement levels drawn between January 13 and 24 clearly show the support and resistance levels that $ETH has followed on its most recent impulse. While the No. 2 digital asset is encountering resistance at the 0.786 level, we anticipate a slight move lower to $3,050. The downward-trending resistance line should be tested as support and act as a springboard for the trend reversal to complete once prices hit $3,415. Once we break this level, our first real impulse target would be around $4,190. But before we get too ahead of ourselves, let’s wait to see what happens at $3,415. Entry levels for longs could be along this resistance line or around the 0.618 Fibonacci retracement level at $2,940.

According to an SEC filing yesterday, Tesla currently holds close to $2 billion worth of BTC at the end of 2021. The electric car maker invested close to $1.5 billion in BTC during Q1 2021, and crystallized a profit of $128 million in March to show that the world’s largest digital asset by market capital had sufficient liquidity. However, with the recent plunge in prices, Tesla had to record a $101 million impairment loss with the slide in prices. 

Learn more from today’s Trader View video

Digital assets market:

  • Total crypto market capitalization stands at $2.1T, +3.7% from yesterday
  • $BTC is +1.3% at time of writing; 24H liquidations and funding rates: $94.42M, +0.00679% average
  • $ETH is -0.3% at time of writing; 24H liquidations and funding rates: $46.89M, +0.00422% average
  • Stablecoins market dominance: USDT 44.09%; USDC 29.01%; BUSD 9.49%; TerraUSD 6.36%; DAI 5.35%

Alts and DeFi watch:

  • DeFi TVL: $222.16B (+1.98% over last 24h)
  • $SOL +3.2% in the last 24 hours, +16.7% in the past week 
  • $SHIB +16.9% in the last 24 hours, +48.3% in the past week
  • $SAND +0.5% in the last 24 hours, +13.1% in the past week
  • $ENJ +1.0% in the last 24 hours, +9.30% 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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