January 12, 2022

$BTC 24 Hour High $43,223
​​$BTC 24 Low 41,382  
$BTC +1.8% Past 24 hours; -6.8% Past 7 days

$ETH is building for a potential short squeeze 

Good morning. $BTC is on the course of a recovery as the bullish sentiment has started to return, sweeping up liquidity below the $40,000 mark. If $BTC manages to overcome the resistance below $43,000, it will likely retest the next upside hurdle at $45,500. All eyes are on the release of U.S. inflation data later today. As the Federal Reserve has yet to detail its tapering strategies, the new figures can provide more clarity, and thus restore market confidence. We expect to see equity and digital asset markets benefit if the CPI numbers are below or in line with expectations.

$BTC has not touched the ultimate support at $39,616 from the September-low yet. Indeed there seems to be a strong wall of bids at that level to address any selling pressure. If this level does break, a continued move lower of a sustained period of months may be on the cards. By the end of the week, $BTC may face a death cross which generally leads to a rally based on historical data.

For the first time since October, $ETH tumbled below $3,000 despite finding support at the 50W MA. Aside from this dip, it has continued to close above $3,000 and the 0.5 Fiboncci retracement level between the May-high and July-Low. The RSI has now spent a good day or two in the oversold zone. If the market continues to be bid up, we’ll likely encounter the first crucial resistance at $3,360. Funding rates are now clearly stretched to the downside. This is one of the first signs that the confidence of a continued move lower is starting to become overheated, setting up the market for a potential short squeeze. 

Learn more from today’s Trader View video

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

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