January 25, 2022

$BTC 24 Hour High $38,050 / Low $32,950 | $BTC +0.9% Past 24 hours; -16.5% Past 7 days

First relief bounce took place as $BTC found support at $33K

Good morning. During yesterday’s Asian hours, $BTC continued to dip towards $33K, the bottom of the trading corridor in place since the beginning of 2021. The downtrend was then halted by an aggressive rally overnight, pushing $BTC towards $38K. 

The $BTC breakout looks similar to the fake-outs we saw on December 27 as well as January 13 and 21, followed by a quick retracement generally. To break the spell, $BTC needs to hold the key support level at $36K; otherwise, it’s likely to slide further towards $30K. The RSI across equities and digital assets is well into the oversold area. Further, we are likely to continue seeing volatility across all markets as the U.S. Federal Open Market Committee (FOMC) meeting takes place tomorrow. 

While $ETH plunged aggressively yesterday, it’s a relief that the daily close was above the 0.236 Fibonacci retracement level at $2,335, from the May-high and July-low. That said, $ETH is moving lower again, so do keep an eye on this level and $2,170. It’s worth noting that a death cross is forming on $ETH, thus there is a likelihood that it may occur by the end of the week. However, bear in mind that this indicator usually lags the market significantly, especially in the digital asset space where volatility is famously high. Compared to $BTC, we expect $ETH to continue underperforming for a while until its first real support area in the ETH/BTC pair at 0.063463 approaches, which is 5% below the current level. 

Famed author of the Rich Dad Poor Dad book series, Robert Kiyosaki, opined that he was not concerned about the recent price volatility and swore to increase his holdings if $BTC dips to $20K. In recent tweets, he admitted buying at around the $6-$9K level, and he believed profits are made when one buys rather than sells. He firmly believed that $BTC performs as a good investment tool, and digital assets generally have educational uses as well.

Learn more from today’s Trader View video

Digital assets market:

  • Total crypto market capitalization stands at $1.73T, -2.4% from yesterday
  • $BTC is -0.80% at time of writing; 24H liquidations and funding rates: $55.14M, +0.00395% average
  • $ETH is -1.06% at time of writing; 24H liquidations and funding rates: $40.73M, +0.00407% average
  • Stablecoins market dominance: USDT 45.21%; USDC 27.91%; BUSD 8.19%; TerraUSD 6.46%; DAI 4.78%

Alts and DeFi watch:

  • DeFi TVL: $197.76B (-0.05% over last 24h)
  • $SOL -3.7% in the last 24 hours, -35.6% in the past week 
  • $SHIB -6.0% in the last 24 hours, -27.0% in the past week
  • $SAND -4.2% in the last 24 hours, -36.0% in the past week
  • $ENJ -7.0% in the last 24 hours, -36.6% 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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