Crypto prices dump. Triangle complete?

​​$BTC 24 Hour High $39,736  / Low $35,550 |   $BTC -7.9% Past 24 hours; -8.0% Past 7 day

Good morning and happy Friday. Following a short-lived rally on Wednesday, bears are back at the steer and caused an aggressive crash down to the lower end of $BTC’s triangle pattern in the past 24 hours. Over $400 million was liquidated consequently, with most liquidations skewed to longs.  

$BTC is now trading at $36,200, with a recorded 7% loss in prices over the past 24 hours. To ensure a bullish continuation over the coming months, $35,400 is a crucial support level that we need to see hold. If it fails to hold and $BTC moves towards $33,000, this is an additional bearish sign for the No. 1 digital asset to dip lower, with an ultimate target at around $25,000-26,000. Interestingly, the on-balance volume has not started to trend lower just yet, suggesting that the trading volume on the green days is larger than on the red days. Investors should keep an eye on this key indicator as it may help us predict $BTC’s future price direction.

$ETH plunged below $2,800 over the past 24 hours but held up better than $BTC once again. Prices are finding support at 1.618 Fibonacci extension (at $2,700), a level that we have monitored closely over the last few weeks. We see more room for downside for $ETH, and our target remains at around $2,600. But, if $BTC starts seeing a trend reversal here, $ETH could be spared from sliding towards the downside target. The RSI is trading sideways, while the MACD shows a lack of momentum in either direction. Investors are advised to look out for any sudden moves higher at this stage because similar moves to the downside consistently follow them.

Luna Foundation Guard (LFG) has obtained $1.5 billion in BTC to bolster the reserves of its US Terra. This allows LFG to advance towards its goal of amassing $10 billion of BTC to back the UST by the end of the third quarter. Currently, its reserve holds about $3.5 billion in BTC, putting it in the top 10 BTC holders globally. Unprecedentedly, it is the first pegged currency trying to achieve a similar standard to BTC. 

Learn more from today’s Trader View video.

Digital Assets Market

  • Total crypto market capitalization stands at $1.77T, -7.0% from yesterday
  • $BTC is -0.09% at time of writing; 24H liquidations and funding rates: 191.77M, -0.00670% average
  • $ETH is -0.18% at time of writing; 24H liquidations and funding rates: 64.61M, +0.00276% average 
  • Stablecoins market dominance: USDT 44.51%; USDC 26.11%; UST 9.98%; BUSD 9.54%; DAI 4.39%

Alts and DeFi watch:

  • DeFi TVL: $196.89B (-1.06% over last 24 hours)
  • $SOL -10.4% in the last 24 hours, -14.0% in the past week
  • $SHIB -7.4% in the last 24 hours, -11.7% in the past week
  • $SAND -13.1% in the last 24 hours, -14.9% in the past week
  • $ENJ -10.7% in the last 24 hours, -17.7% in the past week

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OSL Trader View is contributed by Hans-Stefan Vonhaenisch, Tiffany Wee & Ethan Fu.

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