January 5, 2022

​​$BTC 24 Hour High $47,533
$BTC 24 Hour Low $45,515
$BTC -0.5% past 24 hours; -3.3% past 7 days

A repeat of July’s trading pattern before a big rally? 

Good morning. $BTC continued to trade sideways while $ETH managed to recover some losses from Monday. It seems that no conviction buy has come to the markets yet over the past 24 hours. Market participants are sitting on the sidelines as extreme fear is still dominating the market, as evidenced by today’s Crypto Fear and Greed Index.

Despite trading above the $45,600 support level, $BTC inched lower at snail’s pace. Given a relatively quiet start to the year, it seems to be the case that sidelined capital continues to wait for a more certain move in either direction before making a decision. The funding rates of $BTC are flat, suggesting neither longs nor shorts are particularly over-leveraged in either direction. It’s worth noting that the on-balance volume returned to a crucial support level that has been in place since August 2021. If this momentum indicator starts dropping off, it can be interpreted that more capital is being traded on down days than capital traded on up days.

$ETH is still in a longer-term downward trend and failed to break the downward-trending resistance line that has been tested on multiple occasions since November. While $ETH is still holding a few percent above the key support area at $3,680, $BTC’s weakness and indecisiveness will continue to affect its price movement. We are in a situation similar to what we saw last July, where the market was moving doggedly lower and called for a huge pullback. What happened next was, of course, a big rally higher.

During a 2-hour Bankless podcast, $ETH creator Vitalik Buterin chatted about a 5-part roadmap for ETH to continue its progress and succeed in the ever-changing crypto landscape. To attain the original goals of $ETH such as being decentralized and scalable, the blockchain data needs to be more nimble and lightweight so that users can better manage data. Merging, surging, sharding, verging and finally purging/splurging were highlighted as the key five steps to this end. Buterin admitted that $ETH as a layer-one network is not fully ready for direct mass adoption but was thrilled to see great progress in layer-two scaling solutions over the past year.

Learn more from today’s Trader View video

Digital assets market:

  • Total crypto market capitalization stands at $2.35T, -0.3% from yesterday
  • $BTC is +0.52% at time of writing; 24H liquidations and funding rates: $71.73M, +0.01214% average
  • $ETH is +0.28% at time of writing; 24H liquidations and funding rates: $29.89M, +0.01155% average
  • Stablecoins market dominance: USDT 47.11%; USDC 25.67%; BUSD 8.77%; TerraUSD 6.20%; DAI 5.46%

Alts and DeFi watch:

  • DeFi TVL: $100.47B
  • $SOL -0.6% in the last 24 hours, -5.4% in the past week 
  • $SHIB -1.1% in the last 24 hours, -7.1% in the past week
  • $SAND -2.9% in the last 24 hours, -7.1% in the past week
  • $ENJ -1.9% in the last 24 hours, -2.2% 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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