October 6, 2021

​​$BTC 24 Hour High $51,971
$BTC 24 Hour Low $49.173
$BTC 3.9% past 24 hours; +25.1% past 7 days

$BTC testing key resistance, ETH has room to run

Good morning. We saw a good sign of recovery as market sentiment towards cryptocurrencies has improved drastically from “Extreme Fear” to “Greed” at 59 today.

$BTC passed the 50K mark for the first time in four weeks and broke the downward-trending resistance line on its first attempt. Trading volumes of $BTC are picking up and giving strength to the run. Should $BTC climb higher, we will need to break the next crucial resistance area (0.786 Fib retracement level), and test it as a new support level to assist the move higher. Also keep an eye on how the RSI resistance is being tested in the next few days. If $BTC does run out of steam, 48K is the first support level, closely followed by 47K and 44K. BTC exchange balance continued to drop.

$BTC’s funding rates are currently negative, meaning some people are using leverage to short the market. Historically, when the funding rates turn negative, a short squeeze might start taking place. The higher the prices go, the higher the likelihood for short positions to be liquidated and eventually turn prices even higher.

$ETH has broken the Fib 0.786 retracement level for the entire bull run since March 2020 — a crucial area we need to hold and consolidate to build a base for the next big leg up. Driven by spot purchases, $ETH’s funding rates are flat or slightly positive. $ETG’s daily RSI is now at a neutral 54, showing there is plenty of room in this run to continue. Trading volumes are a bit muted though, suggesting there is still room to grow. $ETH will likely continue to be pulled in the same direction as $BTC. 

U.S. Bank, the fifth-largest bank in America, rolled out crypto custody solutions for BTC, LTC and BCH. Investment managers with private funds can now use the bank’s services to store their private keys. The bank is in partnership with New York Digital Investment Group (NYDIG) as its first sub-custodian, and there are plans to add ETH and other coins over time to enhance their custody services.

Learn more from today’s Trader View video

Digital assets market:

  • Total crypto market capitalization stands at $2.31T, +3.4% from yesterday
  • $BTC is down 0.5% at time of writing, support / resistance – 46,370 / 53,050
  • $BTC liquidations and funding: $78.7M, 0.0120% average
  • $ETH is down 0.1% at time of writing, support / resistance – 2,970 / 3,730
  • $ETH liquidations and funding: $21.02M, +0.0288% average

Alts and DeFi watch:

  • DeFi TVL: $91.11B
  • $ADA down 1.2% in the last 24 hours, up 9.2% in the past week 
  • $SOL down 1.7% in the last 24 hours, up 25.7% in the past week
  • $DOGE up 2.3% in the last 24 hours, up 27.9% in the past week
  • $UNI up 2.3% in the last 24 hours, up 12.4% 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.

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