BTC Volatility Rises As Options Expirations Loom
Massive Amounts of Options Contracts Due for Expiration. Watch BTC Respond!
by Bog& Giulvezan
At the time of penning, Bitcoin is dynamical men at $53,820, which translates into a +1.35% change for the last 24 hours, which is sort o "gentle" for the crypto-king. However, things may be about to change because nigh $6 billion in options contracts are localise to expire today, reported to data chopine Bybt.
Past expiration of options contracts have triggered strong movements in the spot markets, thus it's likely that nowadays we leave see the same pattern. But although in the recent, option expiries were shortly followed by optimistic movement, we cannot be careful that this will be the type nowadays.
Speaking almost the mentioned $6 billion options expiry, the co-founders of Glassnode (analytics platform) tweeted that "Bitcoin price expectations for April are high, with lots of investors placing their new bets on $80k."
Otherwise voices in the industry are expecting a short extort supported the fact that Bitcoin managed to defend the $50k barrier, thus putt a lot of Sellers unstylish of the money. A quick account of stubby twitc: it occurs when an asset's price increases sharply, thus forcing sellers to buy in prescribe to head off further losses. This action adds more purchasing pressure level, thusly fashioning the asset increase in value even more.
Connected other note, Fed President Jerome Powell recently called Bitcoin "essentially a substitute for gold". He also stated that the digital asset is too explosive to replace order currencies but IT could have got similar utilities to precious metals. Can every last of this start a new leg of the uptrend or are we in for more range-treated trading? Let's take a look at the charts.
Chart Analysis – BTC/USD
After printing the recent high above $61K, Bitcoin started a correction lower and has been underperforming, with both the MACD and RSI heading south. However, "underperforming" may be too harsh and we moldiness too require into account the fact that the USA Dollar sign has been strengthening against most of its counterparts, thus we are dealing with ask for the quote currency (USD), which drags the pair low-spirited.
We keister already see price reacting at the $52,000 level, which also coincides with the 50 periods Moving Average (downhearted logical argument) and together they form a stronger support partition (confluence). A successful bounce at current levels English hawthorn campaign BTC above the psychological level at $55,000, which in turn may open the door for another attack on the All-Time High.
It is worth noting that Mary Leontyne Pric is making a higher low while the RSI is making a lower low, which is titled hidden bullish divergence and is an reading that other push to the upside leave follow. As always, keep in mind that difference is non a signal to buy or deal out happening its possess and must be used in conjunction with other factors.
Source: https://www.binaryoptions.net/btc-volatility-rises-as-options-expirations-loom/
Posted by: perezonapt1948.blogspot.com
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