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After a record day in spot volume, the price of bitcoin has risen, fallen and recovered. Meanwhile, most ether options traders are bearish, some are paying in case they approach record highs.
- Bitcoin (BTC) is trading around $ 34,278 at 9:00 p.m. UTC (4:00 p.m. ET). Earn 3% in the last 24 hours.
- 24 Hour Bitcoin Range: $ 32,528 – $ 36,605 (CoinDesk 20)
- BTC below the 10 hour and 50 hour moving averages on the hourly chart, a bearish signal for market technicians.
Bitcoin’s price has seen highs and lows, going as high as $ 36,605 around 8:00 a.m. UTC (3 a.m. ET), falling to $ 32,528 around 2:30 p.m. UTC (9 a.m. ET), then rising to $ 34,278 as of press time. .
Andrew Tu, an executive at quantitative trading firm Efficient Frontier, sees the $ 36,000 price point as “resistance,” an area where bearish traders seem ready to hit the sell button on bitcoin. “Right now the bulls are defying the resistance of $ 36,000. It failed to surpass $ 36,600 earlier this afternoon in Asia, ”Tu told CoinDesk. “When the east coast of the United States woke up, the market started to bid higher again.”
Monday’s Bitcoin spot volumes were the highest on record since CoinDesk 20 data on eight major spot exchanges began recording. An incredible volume of $ 13.3 billion was traded on Monday, the highest since December 22, 2017, when volumes reached $ 9.7 billion.
Still, spot volumes were well below Tuesday, at $ 5.1 billion at the time of publication.
“There will probably be a battle to bring this past between $ 36,000 and $ 36,600,” said Andrew Tu of Efficient Frontier..
Volume will likely play a factor in this battle given the successful spot trading activity at the start of the week. However, this was due to large amounts of sales, which dumped 20% of the world’s oldest cryptocurrency in 24 hours.
Read more: Bitcoin whales continued to pile up during Monday’s crash
“Bitcoin peaked at $ 42,000 just before a weekend,” said David Russell, vice president of market intelligence at trading technology company TradeStation. “The volume dries up when institutional investors are absent and other markets are closed. This left bitcoin in the midst of the air, with no buyers to back it up. “
In the Bitcoin options market, traders seem to be enjoying their chances of hitting a price of $ 30,000 for 1 BTC when the January 21 expires. Market-based probabilities have a 62% chance of bitcoin above $ 30,000 on this date, a 55% chance of $ 32,000, and 47% expect the world’s oldest cryptocurrency to be 34,000 $ closer to the end of the month.
“Bitcoin is a volatile asset,” said Russell of TradeStation. “You can’t expect anything to double in a few weeks and not back down.”
Read more: As Bitcoin rallies, options traders are betting on $ 52K move by end of January
Michael Gord, chairman and CEO of trading firm Global Digital Asset, said he expects institutions to continue recovering bitcoin, which could help support the asset at a price of $ 30,000. and more. “I think we’re going to see a huge resurgence as big brands start securing their cash on the blockchain.” he said.
Bets are placed on FOMO potential ether
Ether (ETH), the second largest cryptocurrency by market capitalization, rose on Tuesday, trading around $ 1,085 and climbing 6% in 24 hours at 9:00 p.m. UTC (4:00 p.m. ET).
On Monday, the amount of the premium traded in the Deribit ether options market strongly favored calls, which give owners the right, but not the obligation, to buy an asset at a particular price. Ether’s record spot price stands at $ 1,448, according to data from CoinDesk 20.
While the ether options market strongly favors strikes below the spot price of ETH at $ 800, 68% of the call premiums paid on Monday apparently come from traders seeking to hedge any risk from another. parabolic rise in ether, according to Tuesday’s investor note from data aggregator Genesis Volatility.
“Options traders are willing to pay a lot more for upside options exposure to ETH than for downside exposure,” Genesis wrote. “This activity indicates that traders are seeing asymmetry in price action volatility, also known as ‘downside risk’ and FOMO sentiment.”
Other markets
Digital assets on CoinDesk 20 are all green on Tuesday. Notable Winners at 9:00 p.m. UTC (4:00 p.m. ET):
Read more: UK Treasury seeks comment on cryptocurrency, Stablecoin regulation
- Oil rose 1.8%. Price per barrel of West Texas Intermediate crude: $ 53.14.
- Gold was in the green at 0.73% and $ 1,856 at the time of publication.
- The yield on 10-year US Treasuries fell to 1.134 on Tuesday and in the red to 1.3%.
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