January 18, 2022

​​$BTC 24 Hour High $43,200 / Low $41,568    |   $BTC -1.6% Past 24 hours; +1.2% Past 7 days

$BTC retraced, looking to retest $40K 

Good morning. Following the downward trading trajectory of July 2021, $BTC continued to see the W pattern playing out. Some argued this to be part of a larger Wyckoff Accumulation structure, where big players build long positions (at the low 40Ks recently) and wash out smaller retail investors when the market has been trading sideways after a sustained downtrend. 

Before $BTC continues the run into February, $BTC may not only see one final retest of the $40K area, but also dip with a daily close below $40K. Dollar-cost averaging (DCA) strategy purchases at these levels can help build a strong position and benefit investors in the entire next leg up – patience at this stage will likely pay off for holders in the long run. Alternatively, a successful break and retest of $44,500 could be a confirmation signal investors are waiting for the market to move higher again.

Though $ETH retested $3,200, it is likely to drop further towards $3,000 if $BTC continues to trend downward over the coming days. The W reversal pattern highlighted on $BTC is also a valid structure playing out on $ETH now. Look out for two possible entries for $ETH longs, with the first one at $3,000. $3,400 can be the second entry point, but only after it is broken as a resistance level and held on a retest at support. 

CoinShares’ latest report reveals a weekly record of US$73M of digital asset investment product outflows, the fifth week running in terms of outflows, now totaling US$532M. $BTC showed $55M in outflows, clocking in four out of the last five weeks of outflows, now totaling US$317M. At the end of the week, $ETH saw US$30M of outflows, numbering the sixth straight week of outflows, totaling US$230M. A bright spot was SOL which remains a current digital asset market participant favorite, seeing inflows amounting to US$5.4M at the end of the week of January 7.

Learn more from today’s Trader View video

Digital assets market:

  • Total crypto market capitalization stands at $2.15T, -2.4% from yesterday
  • $BTC is +0.31% at time of writing; 24H liquidations and funding rates: $43.81M, +0.00205% average
  • $ETH is +0.50% at time of writing; 24H liquidations and funding rates: $40.73M, +0.00701% average
  • Stablecoins market dominance: USDT 46.08%; USDC 26.80%; BUSD 8.40%; TerraUSD 6.31%; DAI 5.48%

Alts and DeFi watch:

  • DeFi TVL: $96B
  • $SOL -3.5% in the last 24 hours, +4.1% in the past week 
  • $SHIB -3.0% in the last 24 hours, +9.7% in the past week
  • $SAND -4.3% in the last 24 hours, +3.9% in the past week
  • $ENJ -5.5% in the last 24 hours, +8.0% 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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