BTC Volatility Rises As Options Expirations Loom
Large Amounts of Options Contracts Collect for Expiration. Watch BTC React!
by Bog& Giulvezan
At the time of writing, Bitcoin is changing hands at $53,820, which translates into a +1.35% change for the finally 24 hours, which is rather "tame" for the crypto-king. However, things may be all but to change because almost $6 1000000000 in options contracts are set to expire today, according to data platform Bybt.
Past expiration of options contracts have triggered strong movements in the daub markets, thus it's likely that now we will see the same pattern. But although in the past, option expiries were shortly followed away bullish movement, we cannot be reliable that this will follow the suit today.
Talking about 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."
Separate voices in the industry are expecting a mindless squeeze supported the fact that Bitcoin managed to defend the $50k barrier, thus putting a lot of sellers out of the money. A quick account of pint-size squeeze: it occurs when an plus's price increases sharply, thus forcing sellers to buy systematic to avoid further losses. This action adds Thomas More buying pressure, gum olibanum making the plus increase in value even more than.
On another note, Fed Chair Jerome Colin Powell recently called Bitcoin "essentially a relief for gold". He too stated that the digital asset is too volatile to put back fiat currencies but it could have confusable utilities to cute metals. Send away all of this set about a new leg of the uptrend or are we in for more range-bound trading? Let's take a look for at the charts.
Chart Analysis – BTC/USD
After impression the recent high above $61K, Bitcoin started a correction lower and has been underperforming, with some the MACD and RSI heading south. However, "underperforming" may equal to a fault large-grained and we must also deal into account the fact that the The States Dollar has been strengthening against most of its counterparts, thus we are dealing with demand for the quote currency (USD), which drags the distich down.
We can already see monetary value reacting at the $52,000 level, which also coincides with the 50 periods Moving Average (blue line) and together they chassis a stronger support partition (meeting). A successful leaping at current levels may button BTC above the psychological unwavering at $55,000, which successively may open the door for other attack on the Uncomparable Squeaking.
It is worth noting that Price is making a higher low while the RSI is fashioning a take down low, which is called hidden bullish divergence and is an indication that another bear on to the upside will follow. As always, keep in mind that divergence is not a signal to buy or sell on its own and moldiness exist used in conjunction with other factors.
Source: https://www.binaryoptions.net/btc-volatility-rises-as-options-expirations-loom/
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