$BTC 24 Hour High $58,930
$BTC 24 Hour Low $56,640
$BTC -0.7% past 24 hours; +2.6% past 7 days
$ETH surges by 12% after Black Friday low
Good morning. $BTC attempted to move higher, but it’s currently creating a wall at $58,660, getting stuck between the downward-trending resistance lines. While $BTC appears to form the handle portion of a cup and handle pattern on the daily chart, can it clear the way for growth to new highs?
To the downside, $BTC continues to hold at 111D MA because it is one of the two moving averages used to construct the Pi-cycle Top indicator. Historically, it has been proven exceptionally accurate to determine the market top and thus given us the confidence that this bull run is not over yet. Funding rates are again stretching very quickly, reflecting that market participants believe $BTC is not likely to drop further and that the use of leverage will be safe. However, this sets us up for further pullbacks, especially more so with $BTC than $ETH on this occasion.
While trading 12% above the Black Friday low, $ETH is a textbook example of how a recovery should look — it bounced off key support levels and smashed through resistance lines. This rally is spot-driven, as evidenced by the completely flat funding rates. We have seen it occur multiple times after $ETH had been scrutinized and dropped into the oversold territory. The ETH/BTC pair has improved since October, and it’s now at a crucial area of 0.07788. The macro resistance line at 0.7723 has been broken. If a successful retest of this line takes place, $ETH is expected to outperform $BTC significantly in the coming weeks.
Twitter’s stock price surged by over 11% yesterday after its CEO and $BTC evangelist Jack Dorsey announced to step down after 16 years with the microblogging giant. A few months ago, Dorsey revealed Square was creating a protocol for a decentralized $BTC exchange after teaming up with Blockstream, launching a solar-powered mining project. His successor will be announced in due course after Dorsey reached an agreement with Twitter’s board of directors.
Learn more from today’s Trader View video.
Digital assets market:
- Total crypto market capitalization stands at $2.75T, +1.1% from yesterday
- $BTC is -0.94% at time of writing; 24H liquidations and funding rates: $51.46M, +0.01235% average
- $ETH is +0.19% at time of writing; 24H liquidations and funding rates: $40.5M, +0.00816% average
- Stablecoins Market Dominance: USDT 48.97%; USDC 25.37%; BUSD 8.68%; DAI 5.78%
Alts and DeFi watch:
- DeFi TVL: $108.3B
- $SOL +1.0% in the last 24 hours, -5.6% in the past week
- $SHIB +10.1% in the last 24 hours, +1.60% in the past week
- $SAND -5.4% in the last 24 hours, +42.0% in the past week
- $ENJ -5.4% in the last 24 hours, +1.0% in the past week
More news that caught our eye:
- Twitter’s share price jumps as Jack Dorsey steps down as CEO
- Elon Musk cosigns tweet warning $DOGE holders against margin trading
- Invesco enters crypto ETP space with bitcoin launch
- Kelly Strategic Management files for ETH futures ETF
- DeFi TVL hits new highs while Metaverse tokens show signs of exhaustion
- $BTC vs gold: Does Bitcoin stand a chance against the behemoth precious metal?
- Will $LTC repeat its 2017 bull cycle?
OSL Trader View is contributed by Ethan Fu & Stefan von Haenisch.
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