November 16, 2021

​​$BTC 24 Hour High $66,230
$BTC 24 Hour Low $63,714
$BTC +2.0% past 24 hours; +4.3% past 7 days

$BTC and $ETH plunge despite markets remaining bullish

Good morning. When mounting funding rates meet with lower prices, it’s never a good sign for the $BTC and $ETH bulls.

After plunging to 60K, $BTC successfully reclaimed the 62K area to shake off some leverage. The price drop is due to $BTC failing to hold at 63K, and thus breaking the critical support zone from two main indicators — the upward-trending support line from October 13, as well as the 0.786 Fib retracement from Sept-low to Nov-High. Though analysts still see $BTC in a bullish phase, the overall market sentiment has cooled somewhat as the expectations of price explosions towards the end of the year are becoming deflated.  

The hype around $ETH’s price appreciation for seven straight weeks has overshadowed the fact that $ETH is trending downwards over the past five days. $ETH has been testing the lower end of the trading corridor in place since October. It’s worth noting that if we do break it, there would be a significant short-term trend reversal. $4,200 is the first critical support to hold (the middle of the 2021 trading corridor as well as the top from May 14), followed by $4,000 (the local top from September 5). Nevertheless, the short-term pullback may provide good opportunities to buy the dip for the bulls. 

Valkyrie Investments announced plans to launch Valkyrie On-Chain DeFi fund on November 22. The $100M fund will have investments linked to at least 24 assets on 13 blockchains with popular names such as $ETH, $SOL, $FTM and $AVAX in the mix. These crypto assets will be held on-chain to gain yields from lending, liquidity pools, farming and staking, as opposed to Galaxy Digital’s passively-managed DeFi fund.

Learn more from today’s Trader View video.

Digital assets market:

  • Total crypto market capitalization stands at $2.88T, -3.5% from yesterday
  • $BTC is -1.29% at time of writing; 24H liquidations and funding rates: $77.04M, +0.00890% average
  • $ETH is -1.86% at time of writing; 24H liquidations and funding rates: $42.13M, +0.00791% average
  • Stablecoins Market Cap: USDT 52.43%; USDC 24.21%; BUSD 8.96%; DAI 4.54%

Alts and DeFi watch:

  • DeFi TVL: $112.38B
  • $SOL -2.9% in the last 24 hours, -5.9% in the past week 
  • $SHIB -0.8% in the last 24 hours, -4.2% in the past week
  • $SAND -4.7% in the last 24 hours, +5.1% in the past week
  • $ENJ -3.3% in the last 24 hours, -7.0% 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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