January 24, 2022

​​$BTC 24 Hour High $36,575 / Low $34,625    |   $BTC +0.9% Past 24 hours; -16.5% Past 7 days

Global risk-off move causes shockwaves in crypto space

Good morning. Over the last few days, $BTC saw the highest-selling volumes since May 2021. Prices plunged to the 2.618 Fibonacci retracement extension ($34,700), from its price range throughout December. We should see a relief bounce this week. 

The upcoming Federal Reserve meeting on Wednesday will be a key event to determine the market direction as investors are looking for more clarity on how inflation may be addressed in the coming quarters. Equity futures all hit daily oversold levels at the end of last week. At the same time, the U.S. Government’s 10-year bond yield traded near the top of the channel in place since 1993. Should we fail to find support at these levels, realistically, our next real support target is at the bottom of $BTC’s logarithmic growth channel, i.e., at $28,000.

At present, $ETH is finding support from the middle of its logarithmic growth curves. Stay cautious as this implies that the near-term downside could be more significant than $BTC’s should we see another rollover in prices. All altcoins are expected to follow suit too. The May-high and July-low Fibonacci retracement levels are still providing good indicators for support and resistance, with the 0.236 level at $2,335 acting as the most recent support level. Funding rates across the board are starting to get really stretched among shorts, but it is now clear that buying power needs to be strong enough to break through several resistance levels before a trend reversal is considered.  

The world’s biggest asset management firm, BlackRock, with $10T under management filed for an ETF with the SEC that focuses on blockchain technology. The fund tracks the NYSE FactSet Global Blockchain Technologies Index, which tracks the investment results of an index comprising companies involved in blockchain and digital asset technologies. The mandate is to invest up to 80% of the ETF assets into stocks included in the index and the balance allocated to equities-based derivatives. The total ETFs managed by BlackRock accounts for a third of its total $10T assets under management, at roughly $3.3T.

Learn more from today’s Trader View video

Digital assets market:

  • Total crypto market capitalization stands at $1.76T, +4.1% from yesterday
  • $BTC is -0.80% at time of writing; 24H liquidations and funding rates: $55.14M, +0.00584% average
  • $ETH is -1.06% at time of writing; 24H liquidations and funding rates: $40.73M, +0.01023% average
  • Stablecoins market dominance: USDT 45.39%; USDC 27.80%; BUSD 8.13%; TerraUSD 6.41%; DAI 5.30%

Alts and DeFi watch:

  • DeFi TVL: $198.48.9B (-2.56% over last 24h)
  • $SOL -2.0% in the last 24 hours, -34.6% in the past week 
  • $SHIB +3.8% in the last 24 hours, -27.4% in the past week
  • $SAND -1.4% in the last 24 hours, -36.4% in the past week
  • $ENJ +2.6% in the last 24 hours, -36.3% 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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