Bitcoin is making gains, although much of the day saw the cryptocurrency in a wait pattern. Meanwhile, a quarter of the ether options expire in March, meaning traders are making bets on the fiscal first quarter of 2021.
- Bitcoin (BTC) is trading around $ 36,286 at 9:00 p.m. UTC (4:00 p.m. ET). 5.5% gain in the last 24 hours.
- 24 Hour Bitcoin Range: $ 32,463 – $ 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 hitting $ 32,463 around 1:00 a.m. UTC (8:00 p.m. ET Tuesday), it was able to stay in a range of $ 34,500 to $ 35,000 before rising to $ 36,464 before settling at $ 36,286 at the time of publication.
Read more: Analysts are gloomy about Bitcoin’s near-term price outlook right now
Despite the last few hours of rising prices, analysts are calling a day of weak market price action “sideways” or “flat.” After so much enthusiasm for the world’s oldest cryptocurrency in the first days of 2021, what could happen next for the price is unclear, 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 some big guys walked away to wait and see. The market must find its own balance. “
Bitcoin spot volumes were clearly taking a break after Monday’s record daily zenith of $ 13.5 billion for the eight exchanges tracked by CoinDesk 20. For Wednesday, the tally was $ 4 billion at press time. , closer to last month’s daily $ 3.8 billion. spot average.
However, Constantin Kogan, a partner of crypto investment firm Wave Financial, has a bearish outlook on the bitcoin market. “We could go even lower at $ 23,000,” Kogan said. Because ‘buy the plunge’ is a strategy deployed in the crypto market if digital assets start dumping, prices may eventually bottom out in the near term. “There is an area from which they (traders) will start to actively buy back,” Kogan added.
Read more: Former Ripple CTO Can’t Remember Password To Access $ 240 Million In Bitcoin
Another chart to note as the price of bitcoin has risen by more than 23% so far this year is that of the Dollar Index (DXY), a measure of the strength of the greenback against a basket of dollars. ‘other fiat currencies. At the same time last year, the price of the DXY index was above 97. So far in 2021, it is struggling to stay above 90.
Wave Financial’s Kogan also noted that there has been a closer, albeit opposite, relationship between American ducks and bitcoin in recent times. “Bitcoin’s decline on Monday occurred simultaneously with the strengthening of the dollar index,” he said. “As a result, the two biggest currencies – digital and traditional – once again showed an inverse correlation.”
Ether option expirations pile up in March
The second largest cryptocurrency by market cap, Ether (ETH), was up on Wednesday, trading around $ 1,110 and climbing 2.5% in 24 hours at 9:00 p.m. UTC (4:00 p.m. ET).
The amount of open interest on ether options strongly favors the March 21 expiration. This is where 25% of open interest on current options is located, according to data from aggregator Skew.
“Most of the time it rolls,” said Vishal Shah, founder of derivatives exchange Alpha5, referring to a strategy where traders “roll” to a higher strike price. And while most strikes favor a spot price below $ 800, the majority of Wednesday’s trades were calls (62%) versus put (39%).
Shah told CoinDesk that the March 21 expiration date stack correlated well with the end of the fiscal quarter and could explain why he takes the lion’s share of open interest on ether options. “Quarterly expirations are typically larger than monthly, and March is now the closest quarterly expiration,” he said.
Digital assets on CoinDesk 20 are all green on Wednesday. Notable Winners at 9:00 p.m. UTC (4:00 p.m. ET):
Read more: Multiple tokens see rally amid impending ‘alternate season’
- Oil fell 0.75%. Price per barrel of West Texas Intermediate crude: $ 52.86.
- Gold was in the red at 0.35% and $ 1,848 at the time of publication.
- The yield on 10-year US Treasuries fell to 1.090 on Wednesday and into the red 3.3%.