Bitcoin is making profits, even though the cryptocurrency was in a hold pattern for much of the day. Meanwhile, a quarter of the Ether options will expire in March, meaning traders will place some bets on the first fiscal quarter of 2021.
- Bitcoin (BTC) is trading at around $ 36,286 as of 9:00 PM UTC (4:00 PM ET). Profit of 5.5% in the last 24 hours.
- Bitcoin’s 24-hour range: $ 32,463 to $ 36,552 (CoinDesk 20)
- BTC above the 10-hour and 50-hour moving averages on the hourly chart, a bullish signal for market technicians.
Bitcoin was able to recover from a price drop on Wednesday. After dipping to $ 32,463 around 1:00 UTC (8:00 PM ET Tuesday), it was able to stay in the $ 34,500 to $ 35,000 range before breaking out to $ 36,464 before settling at $ 36,286 at press time.
Continue reading: Analysts are currently grim about the near-term price outlook for Bitcoin
Despite the last hours of price gains, analysts refer to a day with little price movement as “sideways” or “flat”. After so much excitement about the world’s oldest cryptocurrency in the first days of 2021, it’s not clear what might happen next for the price, according to Misha Alefirenko, founder of crypto market maker VelvetFormula.
“I don’t have a clear view at the moment,” Alefirenko told CoinDesk. “Looks like tall people stepped out to wait and see. The market has to find its own balance. “
Bitcoin Spot volume After the record high daily zenith of 13.5 billion US dollars on Monday for the eight exchanges recorded by CoinDesk 20, a breather was taken. As of Wednesday, the balance sheet at press time was $ 4 billion, closer to the daily spot average of $ 3.8 billion last month.
Constantin Kogan, partner at the crypto investment firm Wave Financial, sees the Bitcoin market as bearish. “We could even go down to $ 23,000,” said Kogan. Since “buy the dip” is a strategy used in the crypto market when digital assets start to dump, prices can potentially bottom out in the short term. “There is a zone that they (traders) will be actively buying back from,” added Kogan.
Continue reading: Ex-Ripple CTO cannot remember the password to access USD 240 million in Bitcoin
Another chart to look out for, as Bitcoin price has risen over 23% so far this year, is the Dollar Index (DXY), a measure of the strength of the greenback against a basket of other fiat currencies. Last year around this time, the DXY index price was over 97. So far, in 2021, it’s struggling to stay over 90.
Wave Financial’s Kogan also noted that the United States has a closer, albeit opposing, relationship Ducks and bitcoin of late. “Bitcoin Monday’s decline came at the same time as the dollar index strengthened,” he said. “As a result, the two largest currencies – digital and traditional – again showed an inverse correlation.”
The expiry times for Ether options pile up in March
The second largest cryptocurrency by market capitalization, Ether (ETH), rose on Wednesday, trading at $ 1,110, and rose 2.5% in 24 hours at 9:00 PM UTC (4:00 PM ET).
The amount of open interest in ether options strongly favors the end of March 21st. According to the aggregator, 25% of the current open options can be found here Aslant.
“Most of the time, it rolls,” said Vishal Shah, founder of the Alpha5 futures exchange, referring to a strategy where traders “roll” at a higher strike price. And while most strikes favor a spot price below $ 800, most trades on Wednesday were calls (62%) versus puts (39%).
Shah told CoinDesk that the March 21 expiration date accumulation correlates well with the end of the fiscal quarter and may explain why the lion’s share of the open options are being drawn on ether options. “Quarterly expiration times tend to be longer than monthly ones, and March is now the next quarterly expiration,” he said.
The digital assets of CoinDesk 20 are all green on Wednesday. Notable Winners as of 9:00 PM UTC (4:00 PM ET):
Continue reading: Multiple Tokens See rally in the midst of the upcoming “Alt-Season”
- The oil fell 0.75%. Price per barrel of West Texas Intermediate Crude: $ 52.86.
- Gold was down 0.35% and was trading at $ 1,848 at press time.
- The US 10-year Treasury yield fell to 1.090 on Wednesday and was in the red at 3.3%.