Bitcoin is bouncing back from a steady drop in prices as ether options traders await another high water mark after hitting an all-time high of $ 1,439.
- Bitcoin (BTC) is trading around $ 35,023 as of 9:00 PM UTC (4:00 PM ET). 4.1% decrease in the last 24 hours.
- Bitcoin’s 24-hour range: $ 33,430 to $ 36,794 (CoinDesk 20)
- BTC above the 10-hour average but well below the 50-hour moving average on the hourly chart, a sideways signal for market technicians.
Bitcoin’s price fell Wednesday and was $ 33,430 at around 3:00 PM UTC (10 a.m. ET) according to CoinDesk 20 data. It’s been a long and mostly downward direction for the price. The world’s oldest cryptocurrency peaked at $ 36,794 24 hours ago. It fell over $ 3,300 before rising slightly to $ 35,023 at press time.
Constantin Kogan, partner at crypto investment firm Wave Financial, has a bearish outlook and expects a decline to at least $ 30,000. “This is where the cops will begin to actively buy back. If we cross that mark, it could drop to nearly $ 26,000, ”he told CoinDesk. “According to a survey by Bank of America, long bitcoin has become the busiest way to trade.”
Continue reading: Bitcoin overcrowded trading after ‘Long Tech’: Bank of America
Kogan called the crypto spill “a little pressure” on Wednesday. There has certainly been pressure on the derivatives market in the past 24 hours. The long January 19 liquidations, which included trading in the early Asian hours that led to the market on Wednesday, totaled $ 121 million. “Liquidations” corresponds to a margin call in Crypto in which the position of a leveraged trader is wiped out.
On January 10, the last time a large number of long liquidations took place, $ 555 million in leveraged trades with bulls were placed and the bitcoin market collapsed to $ 30,300.
however, Michael Stark, market analyst at FX Broker Exness, expects larger financial players to continue plowing dollars into the bitcoin market as investors continue to avoid risky assets like gold and investigate risky instruments like stocks and crypto.
“Bitcoin will almost certainly go higher at some point, but everything has to pause here and there,” said Stark.
Continue reading: BlackRock gives 2 funds the opportunity to invest in Bitcoin futures
With a new U.S. president inaugurated on Wednesday and rolling out a new set of guidelines – including the expectation of further fiscal stimulus – traders may become optimistic that more dollars pouring into the economy could lead to higher crypto prices. The Bitcoin market is still in bull mode overall. Less than a month ago, the spot price per 1 BTC was below $ 25,000.
Nothing is certain, however, notes Joshua Mahony, senior market analyst at IG trading platform. The question for the markets now is whether the US Congress remains politically divided. “Biden hopes the Democrats will vote by party line to help him push through a number of great spending packages,” Mahony said.
Options traders like calls on airwaves
The second largest cryptocurrency by market capitalization, Ether (ETH), fell around $ 1,338 on Wednesday and fell 3.00% in 24 hours from 9:00 PM UTC (4:00 PM ET).
Continue reading: The record highs of ether can boost the cryptocurrency to $ 10.5,000: Fundstrat
The price of ether also fell on Wednesday, but not as much as that of Bitcoin. According to Skew, the alignment of the current options in the airwaves market greatly favors the calls. Call options are the right, but not the obligation, to buy an asset at a specified price and at a specified time. Calls currently dominate these options, 66% versus 34% for puts, which are contracts that give the right but not the obligation to sell.
Wave Financial’s Kogan is bearish against Bitcoin for now, but expects more bullish results out of the ether in the near future. It appears that options traders agree given their positioning. “The expected rollback of ether did not follow Bitcoin, which indicates the strength of the ETH trend,” said Kogan. “We are waiting for a drop to $ 1,300 (but) in a few days, growth will continue and very soon we could see the $ 1,800 mark.”
Digital assets on CoinDesk 20 are almost all red. Wednesday Notable Winners as of 9:00 PM UTC (4:00 PM ET):
- Oil rose 0.41%. Price per barrel of West Texas Intermediate Crude: $ 53.21.
- Gold was in the green at 1.6% and at $ 1,869 at press time.
- The US 10-year Treasury yield fell to 1.082 on Wednesday and was in the red by 0.77%.