October 25, 2021

​​$BTC 24 Hour High $62,287
$BTC 24 Hour Low $59,672
$BTC 1.6% past 24 hours; +0.6% past 7 days

Markets await leverage to be shaken out

Good morning. Both $BTC and $ETH traded sideways over the weekend. This trend was even more evident for $BTC after falling through the short-term upward-trending support line in place since the beginning of October. Nevertheless, it continuously found support at 60K.  

While funding rates are elevated again, $BTC refuses to go up, suggesting that market players were buying the dip with leverage instead of going to the spot market. However, this is not recommended as this can set up for a potentially exaggerated move lower. The market seems to be waiting for the leverage to be shaken out before the next breakout. 57K and 53K remain our two near-team support levels that could offer good buying opportunities. 

Against $BTC, $ETH’s witnessing a stronger upward trend and has started to retest support levels more frequently, its critical that support at $4,000 is holding. Failing that, the next main support will be at $3,600. Funding rates finally dropped from the levels we saw last week. ETH/BTC pairing grows stronger and has seen a 12% appreciation over the last few days. This means $ETH is currently outperforming $BTC, and $ETH tends to drop by a smaller percentage than $BTC on days where markets have dropped.

With ProShares Bitcoin Strategy ETF (BITO) fanning the flames for $BTC last week, the quiet weekend could be a nice set-up for more price action for $BTC in the coming days. The upcoming options expiry on October 29 is a major one as it’s the biggest before the end of the year. It’s worth noting that one of the expiries involved over 57.4K BTCs, so one shouldn’t underestimate its potential of shaking up the market. Calls at $60K strikes still outnumber Puts by 2:1 at the time of writing, and we can expect the holders to defend their positions leading up to Friday.

Learn more from today’s Trader View video

Digital assets market:

  • Total crypto market capitalization stands at $2.7T, 0.5% from yesterday
  • $BTC is up 1.4% at time of writing, support / resistance – 59,650 / 63,325
  • $BTC liquidations and funding: $60.98M, +0.0239% average
  • $ETH is up 1.1% at time of writing, support / resistance – 3,886 / 4,186
  • $ETH liquidations and funding: $22.17M, +0.0274% average

Alts and DeFi watch:

  • DeFi TVL: $101.22B
  • $SOL up 2.8% in the last 24 hours, up 27.2% in the past week 
  • $LINK down 2.5% in the last 24 hours, up 13.6% in the past week
  • $UNI down 2.0% in the last 24 hours, up 1.3% in the past week
  • $SHIB up 7.0% in the last 24 hours, up 38.1% in the past week

More news that caught our eye:

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

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