$BTC 24 Hour High $42,685 / Low $41,290 | $BTC -1.6% Past 24 hours; +1.2% Past 7 days
Market trading sideways as risk-off in equity markets continues
Good morning. Global equities were in risk-off again, while the dollar index is pushing higher and the U.S. 10-year Treasury yield continues to march higher. All of these moves are having a negative impact on price movements on digital assets.
$BTC witnessed some volatility last night after testing $41,500, and it’s now moving higher towards $42,300. Should $BTC fail to hold the short-term support at $40,000, it can retrace towards the next support levels at $35,000 and $32,000. Nevertheless, $BTC has been trading at the same level as last month. The trading volume continues to be low across the entire market. A substantial part of the market is still shying away after a close to 45% drawn out in Q4 2021. With no bullish catalyst visible on the horizon, $BTC is likely to continue trading sideways for a while longer. Its RSI has picked up slightly, but the overall market sentiment is still somewhat bearish in the short term.
We saw similar sideways price action in $ETH, if not slightly weaker. Despite the No.2 digital asset finding some short-term support at $3,900, it is likely to retest $3,040, the 0.5 Fibonacci retracement between May-high and July-low. Funding rates are flattening out while open interest remains high, suggesting the bulls are coming in with more aggressive leverage. Sideways trading action is likely to persist towards the beginning of February. With key support levels continuing to hold, patience is key at this stage for those who play the long game.
During the World Economic Forum’s Davos Agenda 2022, India’s Prime Minister Narendra Modi spoke of the need to have a united global front in terms of dealing with digital asset adoption, the technologies associated with its adoption, and the need for a common regulatory framework adopted by the wider international community. India has approached the Bank of International Settlements to help put together a regulatory framework for digital assets, but nothing concrete has emanated from this so far. It is also interesting to note that he has not spoken at all at home but has brought this up multiple times during international meetings.
Learn more from today’s Trader View video.
Digital assets market:
- Total crypto market capitalization stands at $2.12T, -1.0% from yesterday
- $BTC is -0.19% at time of writing; 24H liquidations and funding rates: $47.58M, +0.00333% average
- $ETH is -0.17% at time of writing; 24H liquidations and funding rates: $36.42M, +0.00273% average
- Stablecoins market dominance: USDT 46.06%; USDC 26.83%; BUSD 8.36%; TerraUSD 6.33%; DAI 5.49%
Alts and DeFi watch:
- DeFi TVL: $79.45B
- $SOL -0.3% in the last 24 hours, +0.6% in the past week
- $SHIB -4.3% in the last 24 hours, +1.6% in the past week
- $SAND -3.9% in the last 24 hours, -6.2% in the past week
- $ENJ -3.1% in the last 24 hours, -1.7% in the past week
More news that caught our eye:
- UK Treasury to crack down on ‘misleading’ crypto promotions
- Spain places regulations on ads pertaining to cryptos, outlines penalties too
- Small banks set to go live with BTC trading
- Microsoft to acquire Activision Blizzard, how does this fit with its Metaverse strategy?
- BTC mining startup GRIID inks major deal with Intel
- OpenSea acquires crypto lending platform Dharma Labs
- BTC Is harder to manipulate than gold, says PlanB – Here’s why
- DOGE-friendly AMC rewards 580K shareholders with free NFTs
OSL Trader View is contributed by Stefan von Haenisch & Ethan Fu.
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