$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:
- JPMorgan executive says crypto is in the ‘Napster’ phase of its lifecycle
- $ADA sees transaction volume briefly surpass that of $ETH ahead of DEX launch
- The A to Z of what’s standing in the way of a BTC spot ETF in the USA
- Fidelity says what we’ve been thinking: Countries & central banks will buy BTC
- Mark Cuban on centering 80% of his investments in cryptocurrencies
OSL Trader View is contributed by Stefan von Haenisch & Ethan Fu.
OSL is Asia’s most comprehensive digital asset platform providing brokerage, exchange, software-as-a-service and insured custody solutions to professional investors.
Home to one of the world’s largest and most experienced digital asset trading desks, OSL has its finger on the pulse of the market. The Trader View newsletter is a short, easily digested summary of market activity and eye-catching news of the day.
Feedback is important to us, and we’re keen to learn more about the types of insights and intelligence that matter to you most. Please share your thoughts with us.
And be sure not to miss future OSL news and insights by following us on Twitter, Linkedin, Facebook, and Telegram.Please refer to OSL’s relevant disclaimers and disclosures associated with this note, including restrictions on redistribution.