July 28, 2021

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:

OSL Trader View is contributed by Emilia Lee, Ethan Fu & Stefan von Haenisch.

OSL is Asia’s most comprehensive digital asset platform providing brokerage, exchange, software-as-a-service and insured custody solutions to professional investors.

Home to one of the world’s largest and most experienced digital asset trading desks, OSL has its finger on the pulse of the market. The Trader View newsletter is a short, easily digested summary of market activity and eye-catching news of the day.

Feedback is important to us, and we’re keen to learn more about the types of insights and intelligence that matter to you most. Please share your thoughts with us.

And be sure not to miss future OSL news and insights by following us on TwitterLinkedinFacebook, and Telegram.

Please refer to OSL’s relevant disclaimers and disclosures associated with this note, including restrictions on redistribution.