January 21, 2022

​​$BTC 24 Hour High $43,511 / Low $40,386    |   $BTC -2.7% Past 24 hours; -4.5% Past 7 days

Market falters, following a short-lived rally 

Good morning and happy Friday. $BTC popped to $43K last night. However, the rally was short-lived as it quickly dipped towards the $40K region – a 7% move from the daily high to low. It is highly likely that $BTC will touch the $30K zone over the next few weeks. For all intents and purposes, $40K is still a strong support level for $BTC that has held up for the last six months. The next support levels to look out for are $34K and $36K in addition to the psychological support at $30K.

On the weekly and monthly charts, we can still clearly see $BTC is in a strong uptrend, a testament to how much $BTC has moved aggressively over the last two days. That said, we noted a head and shoulders pattern forming with the neckline is just about to be broken through. Despite the 200D MA still trending up slightly, the prices have broken through. Stay cautious as the longer-term trend is at a crossroads. 

Over the past 24 hours, $ETH witnessed an almost 10% move lower from $3,250 to $3,000. Though the $3,000 support level failed to hold, the drop yesterday was fairly in line with the reports of the latest U.S. economic indicators. This suggests some pullback in the financial market news was captured. Although $ETH saw some support at the $2,400-2,600 areas, we could see a relatively quick dip into the $2,000s, given the current trading volumes are relatively thin. While RSI has dropped steadily over the last few weeks to 30 now, 200D MA support also broke through. At present, $ETH is even more anemic than $BTC. Today, the Crypto Fear and Greed index dropped from 24 to 19, and continues hovering in the extreme fear zone. 

From a macro perspective, $BTC rose sharply overnight by over 4% at first could be attributed to Google’s plans to create a new division on blockchain-related technologies, along with Meta and Twitter. Also, the market shrugged off the Russian central bank’s call for a full crypto ban as it was reported to be “funding undesirables”, i.e. opposition group at first but with the jobless claims report showing 3-month highs, which analysts said it directly correlates to the severity of COVID cases in the U.S., the euphoria died. Thus, the market nosedived and left us at where we started, price-wise, roughly 10-11 trading days ago. 

Learn more from today’s Trader View video

Digital assets market:

  • Total crypto market capitalization stands at $2.03T, -2.1% from yesterday
  • $BTC is +0.61% at time of writing; 24H liquidations and funding rates: $106.28M, -0.00359% average
  • $ETH is +0.57% at time of writing; 24H liquidations and funding rates: $89.80M, +0.00191% average
  • Stablecoins market dominance: USDT 45.65%; USDC 27.07%; BUSD 8.35%; TerraUSD 6.33%; DAI 5.48%

Alts and DeFi watch:

  • DeFi TVL: $92.36B
  • $SOL -9.0% in the last 24 hours, -12.9% in the past week 
  • $SHIB -4.8% in the last 24 hours, -10.0% in the past week
  • $SAND -8.6% in the last 24 hours, -17.4% in the past week
  • $ENJ -8.4% in the last 24 hours, -11.3% in the past week

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

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