Investors Bought the Hype and Now Selling the Fact

$BTC 24 Hour High $20,110 / Low $19,330| $BTC -2.5% Past 24 hours; -10.4% Past 7 days

Ethereum continues the pressure trending more downward after the merge. There are speculators already asking “what’s next in crypto?” without realizing the merge was years in the making. In the US, White House released the first first ever comprehensive framework for the development of digital assets, which may help the growth of space long term. Do Kwon broke silence and tweeted that he is not “on the run” and in full cooperation with government agencies. 

Equities, Commodities & Macro 

Asia markets are set to have a cautious start of the week as all eyes on the rate hike this week. Japan and UK markets are closed today. Global equities had the worst week since June. Hong Kong may seek to accelerate opening up the borders and cutting the hotel quarantine, as the city is losing business as well as expats to Singapore at an alarming rate.

Technical Analysis: Bearish weekend price action could continue as week gets underway

BTC

Bitcoin failed to break through resistance at $20,000 yesterday, and is reversing lower again. Finding some initial support at $19,380, but wouldn’t be surprised to see this move continue to at least $18,700.

$18,700 has a strong level of support, so we don’t expect prices to drop below that, unless there is a critical macro economic development that also puts serious pressure on Tradfi markets.

Desk view remains neutral over the next 24 hours, but turns more bearish if $19,380 support fails to hold.

BTC Key levels

  • Resistance / $23,000
  • Resistance / $21,875
  • Resistance / $20,100
    • We are here – $19,420
  • Support / $18,700
  • Support / $17,765
  • Support / $16,200

ETH

ETH hit lowest trading price since mid July, dropping below the short-term trading range we had been since then. Funding rates have moved quickly back to 0 as leveraged short positions were voluntarily unwound.

Next critical support level to be tested is the 200W MA finds itself (around $1,285). This is also where prices found resistance multiple times back in June and July of this year.

4H RSI hitting oversold levels, while the 1D RSI has yet to flash the same signal. Desk expects short term support at this level to hold for next 24 hours, with possibility of a retest of the 200W MA growing more likely if Tradfi markets continue to show weakness.

ETH Key levels

  • Resistance / $1,577
  • Resistance / $1,517
  • Resistance / $1,421
    • We are here – $1,330
  • Support / $1,280
  • Support / $1,072
  • Support / $875

Digital Assets Market

  • Total crypto market capitalization stands at $973B, -4.7% from yesterday
  • $BTC is +0.16% at time of writing; 24H liquidations and funding rates: 31.97M, +0.018456%
  • $ETH is +0.73% at time of writing; 24H liquidations and funding rates: 120.65M, +0.020988%
  • Stablecoins market dominance: USDT 44.83%; USDC 33.16%; BUSD 13.55%; DAI 4.22%


Alts and DeFi watch

  • DeFi TVL: $53.34B (-0.02% over last 24 hours)
  • $SOL -6.2% in the last 24 hours, -9.2% in the past week
  • $SHIB -8.8% in the last 24 hours,-16.3% in the past week
  • $ADA -6.8% in the last 24 hours, -11.2% in the past week
  • $ENJ -7.1% in the last 24 hours, -12.2% in the past week


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OSL Trader View is contributed by Hans-Stefan von Haenisch, Ethan Fu, Tiffany Wee, Melvin Gallu, Keith Hwam & Kevin Lee.

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