January 6, 2022

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

Digital assets tank as global markets sees risk-off move

Good morning. Over the last 24 hours, the digital asset market saw a sea of red as $BTC, $ETH, and other altcoins were also drowning. $726 million has been liquidated across the market within 24 hours, the highest in a month. This dive was reportedly triggered by the news that the U.S. Fed may commence increasing interest rates as early as March, which was sooner than the market was anticipating.  

In the past few hours, $BTC dipped to the support at the bottom of the December 4 wick at $42,500. The plunge just happened a while ago so it’s premature to conclude whether there will be an extended move to the downside. But the price slip was certainly not unexpected. It shows how risky it can be using leverage in a volatile market where prices are trending lower and consolidating. For $BTC, the key is to hold firmly above $42,500 to withstand the selling pressure of the bears. Should $BTC drop lower, the next crucial support is $40,000. The daily RSI showing support line is being retested.

$ETH, along with most altcoins, dropped even harder than $BTC, although the Fibonacci retracement between the September-low and November-high already climbed above 0.382 at $3,500. While filling the December 4 wick fully, $ETH dropped even lower, ultimately touching the 200D MA at $3,400.

Nevertheless, the Bitcoin dominance remains unchanged at almost 40%, suggesting this risk-off move affected the entire digital asset market in unison. When investors panic, we usually see a sudden rotation from altcoins into $BTC. For instance, the indicator jumped by almost 7% in a day in May 2021. The rotation can be deemed the first sign of capitulation so stay cautious.

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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