January 14, 2022

​​$BTC 24 Hour High $44,046
​​$BTC 24 Low $42,631  
$BTC -2.3% Past 24 hours; -1.4% Past 7 days

Open Interest growing steadily, volatility follows

Good morning and happy Friday. $BTC moved lower after encountering resistance at $43,750 as expected. It’s now retracing towards $42,500, a support level that the bulls hope will hold. Wherever the price finds support, ultimately, it’s a good market signal as long as it’s above $39,687. 

$BTC is currently testing the previous resistance at these levels. If it holds, we may start seeing the ideal market structure where previous resistance will become support, and $BTC will begin climbing higher slowly in a steady fashion. At this stage, $BTC shooting up quickly may be far less healthy than a slow grind higher. Another market bottom structure to look out for is a ‘W’ trading pattern. Half of which has been completed, so it’s in play potentially. A higher low would be a good indication of reduced selling pressure, giving room for the bulls to move in and take the market higher.

Similar to $BTC, keep an eye for the same structures in $ETH, although the No. 2 digital asset is showing relatively more strength at this point. If we continue to see selling pressure in Asian hours, $3,200 is likely to be tested. Look out for a double bottom structure, with the second bottom coming in around $3,043, which is in line with the 0.5 Fibonacci retracement level between May-high and July-low. $ETH’s funding rates have flattened out, but we have not seen any liquidations among shorts so far. This implies that longs have come back and are using leverage to build positions. This sets up more aggressive swings in either direction, and a more consistent move could start triggering liquidations. 

A consortium of U.S. banks (Federal Deposit Insurance Corporation-insured financial institutions) threw their hat into the ring on Wednesday regarding building out a network that furthers the adoption and interoperability of a bank-minted stablecoin. The banks, namely New York Community Bank, NBH Bank, FirstBank, Sterling National Bank, and Synovus Bank are set to launch a bank-backed stablecoin with the ticker USDF, where the main aim is to facilitate the compliant transfer of value on the blockchain in addition to removing friction within the current financial system. It will be redeemable on a 1:1 basis for cash from a member bank and will operate on the public Provenance Blockchain, developed by Figure Technologies.

Last but not least, we are excited to share that eight new tokens – BAND, DAI, MANA, MATIC, OGN, SNX, SUSHI and YFI have just landed on OSL. First movers get the edge, trade them via the OSL Exchange, iRFQ platform and OTC desk now.  

Learn more from today’s Trader View video

Digital assets market:

  • Total crypto market capitalization stands at $2.15T, -2.9% from yesterday
  • $BTC is +0.01% at time of writing; 24H liquidations and funding rates: $27.20M, +0.00241% average
  • $ETH is +0.14% at time of writing; 24H liquidations and funding rates: $26.34M, +0.01185% average
  • Stablecoins market dominance: USDT 46.38%; USDC 26.62%; BUSD 8.42%; TerraUSD 6.27%; DAI 5.40%

Alts and DeFi watch:

  • DeFi TVL: $96B
  • $SOL -3.1% in the last 24 hours, -2.4% in the past week 
  • $SHIB -6.7% in the last 24 hours, -3.6% in the past week
  • $SAND -6.1% in the last 24 hours, -7.6% in the past week
  • $ENJ -5.5% in the last 24 hours, -6.9% 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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