OSL Trader View – July 28, 2021
$BTC 24 Hour High $39,379
$BTC 24 Hour Low $36,277
$BTC +5.7% past 24 hours; +31.1% past 7 days
Good morning. BTC has appreciated for seven straight days, and confidence in BTC is spreading throughout the crypto markets. The fear and greed index is improving while the GBTC share discount has narrowed to around 5%, indicating institutional demand for the asset.
Trading volumes remain elevated. The spike on Monday was almost certainly due to forced liquidation of short positions ($1.2B shorts closed in 24 hours). However, since then it seems demand driven buying has lifted volumes, as liquidations have remained low.
A slight correction over the next few days may occur; the recent 7-day price runs have been followed by a correction of at least 10% over a 1-2 day period. The daily RSI is also almost at 70, suggesting the market is overbought.
We may therefore see a retest of the 36K area, possibly dropping as low as 32K, before we attempt to break the 40K level again. Resistance levels to look out for are 41K area (the June 15 high and 0.382 Fib retracement), followed by 43K where we see the downward trending resistance line and the 111d MA (yellow line in the graph). Beyond that, keep an eye on the 45K area, which acted as an area of price consolidation during the run at the beginning of the year.
For the week ending July 23, crypto outflows amounted to $27.6M, with BTC claiming $24M out of this flow. BTC related products totaled $49M, with ETH related instruments posting outflows of roughly $7.3M
Despite the outflows, Grayscale’s BTC holdings are up from last week, now at $28.5B. The second-largest digital asset manager, CoinShares, remained steady at $3.2B.
Learn more from today’s Trader View video.
Digital assets market:
- Total crypto market capitalization stands at $1.58T, +4.1% from yesterday
- $BTC is up 0.6% at time of writing, support / resistance – 36,388 / 39,683
- $BTC liquidations and funding: $197.73M, -0.0038% average
- $ETH is up 0.5% at time of writing, support / resistance – 2,259 / 2,326
- $ETH liquidations and funding: $59.2M, 0.0058% average
Alts and DeFi watch:
- DeFi TVL: $65.26B
- $ANKR up 28.28% in the last 24 hours, up ~62.99% in the past week
- $OKB up 17.64% in the last 24 hours, up ~88.42% in the past week
- $AAVE down 1.25% in the last 24 hours, up ~36.82% in the past week
- $POLS up 3.04% in the last 24 hours, up ~25.02% in the past week
More news that caught our eye:
- Shopify allows merchants to sell NFTs directly through their storefronts
- Bitcoin leaps 12% to test recent peaks, ether hits 3-week high
- Crypto app Valora raises $20M, becomes independent from Celo
- Banks in Kazakhstan to open accounts for registered crypto exchanges
- Huobi winds down former exchange operator in China
- Crypto derivatives exchange Bitget to list USDC as collateral for margin trading
OSL Trader View is contributed by Emilia Lee, Ethan Fu & Stefan von Haenisch.
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