February 9, 2022

$BTC 24 Hour High $44,979  / Low $42,701   |   $BTC +0.7% Past 24 hours; +14.1% Past 7 days

$BTC bounced over 30% from multi-month lows

Good morning. Despite $BTC seeing some volatility over the last 24 hours, we are still hovering in the same price range as yesterday. To confirm that $BTC has actually bottomed out, $45,600 is the upside resistance we need to break. However, if we fail to hold $41,500, it may send $BTC towards $39,000 or even $36,000.

RSI is not in the overbought territory just yet, so some short-term bullish price action for $BTC is on the horizon. Nevertheless, we expect a “necessary” pullback to happen at some point soon – while it does not feel like it, $BTC has quietly rallied more than 30% from the lows on January 24. Correlation to equity markets is unwinding quickly. This will give $BTC some protection from the weaker equity markets should the struggles continue there. Funding rates have reset to 0.01% across main retail exchanges, with no real liquidation events taking place. This suggests new longs are taking more leverage than their short counterparts.  

$ETH tested the downward-trending resistance line as support and moved higher this morning. Similar to $BTC, $ETH noted some volatility over the last 24 hours but returned to where we were this time yesterday. The 50W MA now acts as support, while 50D MA has become the ceiling. We are keen to see $ETH tackle the $3,270 area so that the entire move since January 20 could be recovered. The RSI on the weekly and daily timeframes are at relatively neutral levels still, leaving us with more room for short-term upside. However, the weekly stochastic RSI is still very much in oversold territory. Negative funding rates are still appearing on several exchanges, meaning some extensions of leverage have been used among shorts. Keep an eye on trading volumes as they are trending a touch lower. Any prolonged move higher should be backed up by increasing trading volumes. 

A report from CoinShares showed a third consecutive week of inflows totaling up to $85M into digital asset investment products last week, adding to a cumulative total of $133M to date. This indicates the positive sentiment among market participants, especially from Brazil and Canada, contributing $75M, along with Europe at $10.3M. BTC-based investment products garnered the largest share, but product volumes remained low last week at $1.8B, compared to $3.4B the week prior. ETH continues to see outflows, and this has been the ninth week of consecutive outflows totaling $280M, representing 2.2% of assets under management.

Learn more from today’s Trader View video

Digital assets market:

  • Total crypto market capitalization stands at $2.09T, -0.4% from yesterday
  • $BTC is +0.33% at time of writing; 24H liquidations and funding rates: $104.95M, -0.00544% average
  • $ETH is +0.40% at time of writing; 24H liquidations and funding rates: $41.00M, -0.00935% average
  • Stablecoins market dominance: USDT 43.88%; USDC 29.03%; BUSD 9.61%; TerraUSD 6.34%; DAI 5.44%

Alts and DeFi watch:

  • DeFi TVL: $208.6B (+1.59% over last 24h)
  • $SOL -1.9% in the last 24 hours, +4.3% in the past week 
  • $SHIB -4.9% in the last 24 hours, +46.0% in the past week
  • $SAND +2.4% in the last 24 hours, +19.7% in the past week
  • $ENJ +1.4% in the last 24 hours, +14.40% in the past week

More news that caught our eye:

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