Both BTC$ and ETH$ are nearing the critical supports of $29k and $1,700.
BTC$ & ETH$ (daily)
How low can it go? Probably down to $20k. If you look at the liquidity pool structure, there was not much trading on the way up, except a bit around $23k. What surprises me, is the very low volume that we are experiencing while grinding lower. It potentially signals that sellers are exhausted and that the market is waiting for some positive news.
In terms of the derivatives market, we are seeing a similar picture. Trading volumes have returned to lower levels ever since the May 2021 crash, although OI has recovered in both BTC and ETH, but you have to look at it in kind (and not in terms of USD). Funding rates have been neutral for over eight weeks.
It is tough to offer meaningful analysis. I am sticking to my call that if we break $29k with good volume, then we can say hello to the low $20k levels.
ETH$ dailyRead more