Bitcoin Is Braced For A Near-$1 Billion Shock This Week
Bitcoin traders and investors have seen a return to volatility this month, with the bitcoin price suddenly dropping in early September.
The bitcoin price, which had broken $12,000 per bitcoin at the end of August, dropped to around $10,000 amid a broader market sell-off before somewhat rebounding.
This week, the bitcoin market is braced for almost half of nearly $2 billion worth of bitcoin options to expire—something that could bring a fresh wave of volatility.
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Bitcoin traders and investors are braced for almost $1 billion worth of options to expire this week. … [+]
Bitcoin open interest has climbed to $1.9 billion, around triple what it was just a few months ago, according to data from bitcoin and crypto analytics provider Skew, with some 47% of existing contracts due to expire this coming Friday.
The looming bitcoin options expiry could spark a fresh bout of price volatility. Previous large expiries have caused the market to “bounce quite aggressively,” according to some analysts.
The bitcoin options market has swelled through 2020, led by Deribit, a Panama-based derivatives exchange, which accounts for the vast majority of the bitcoin options contracts.
Meanwhile, bitcoin market watchers have been buoyed recently by bitcoin’s bounce at the psychological $10,000 level.
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A little over 80,000 bitcoin options contracts, worth almost $1 billion, are due to expire this … [+] Friday, September 25.
“Bitcoin has resisted the bears’ pressure below $10,000, saving itself from falling further towards $9,000 and below,” Alex Kuptsikevich, the FxPro senior financial analyst, said via email, adding the market is seeing “growing interest from institutional investors after some stagnation.”
“It is worth paying attention to the reduced volatility in bitcoin in recent days, along with cautious price growth. This is more akin to careful buying following the optimism of global markets, rather than going all-in on the prevailing optimism.”
Elsewhere, markets are nervously eyeing what has been called a second wave of coronavirus infections, with U.S. stock market futures pointing to a muted start to the week.
Author: Billy Bambrough
Bitcoin (BTC) Price Analysis: September 21, 2020
Bitcoin (BTC) price retested the $ 10,750 support and recently gained against the US Dollar. To start a new increase in the near term, BTC must stay above $ 10,750. BTC was trading at $ 10,943 at the time of writing.
Bitcoin is struggling to gain momentum above the $ 11K resistance levels. The price is currently trading well above the $ 10,750 support and is testing the 100 hourly simple moving average. There was a break above a key bearish trend line with resistance near $ 10,880 on the hourly chart of the BTC / USD pair, according to analyst Aayush Jindal. If the bulls fail to maintain the $ 10,750 support zone in the near term, the pair could sneak up on the upside.
After trading near the $ 11,200 level, bitcoin price started a downside correction against the US Dollar. BTC corrected below the $ 11K level and the 100 hourly simple moving average. However, the bulls were able to maintain the main $ 10,750 support zone. There was a low near the $ 10,767 level and the price is now up. BTC broke the $ 10,880 and $ 10,880 levels to return to the short-term positive zone. There was also a break above the downtrend line near $ 10,880 on the hourly chart of the BTC / USD pair.
The price is currently trading well above the $ 10,750 support and is testing the 100 hourly simple moving average. On the upside, the first major resistance is near the $ 11k level. The next key resistance is near the $ 11,20 level. If there is a clear break above the $ 11,000 and $ 11,20 levels, the price is likely to continue to rise further.
The next major hurdle for the bulls could be near the $ 11,200 level. More gains could open the door for a larger upward move towards the $ 11,500 level in the near term.
According to analyst Florian Grummes, BTC is currently correcting in its summer rally. According to him, there is an area of recovery towards $ 11,500 in the short term. Emotion has become a bit pessimistic but (yet) does not present the opposite opportunity. The last few weeks before the US elections could be difficult, analyst said.
If Bitcoin fails to move above the $ 11K pivot level, there is another downside risk. The main support on the downside is near the $ 10,750 zone where the bulls take a stand in many cases. A clear break below the $ 10,800 and $ 10,750 support levels could lead to a sharp decline. The next major support for the bulls to appear is near the $ 10,550 level.
Bitcoin’s rise from $ 10,000 to $ 11,000 was slow but steady. However, recently, bulls seem to have run out of power in the market, according to analyst Akash Girimath. Bitcoin’s outlook in the medium to long-term time frame looked bleak at the time of writing, and the article below explains why. According to Girimath, although the price of bitcoin is hopelessly holding to $ 11,000, it will soon loosen its dominance. After that, there will be a decrease towards 10 thousand dollars.
Author: Leonard Mansonhttps://somagnews.com
Bitcoin News Roundup for Sept. 21, 2020
Sep 21, 2020 at 16:00 UTC
Author: Nathan DiCamillo