The Future Coin

Bitcoin

$30,613.26

BTC -3.61%

Ethereum

$1,262.66

ETH -1.85%

XRP

$0.25

XRP -4.07%

Litecoin

$124.49

LTC -6.57%

EOS

$2.53

EOS -2.16%

  • News
    • Bitcoin News
    • Ethereum News
    • Ripple News
    • Litecoin News
    • Altcoin News
    • Blockchain News
    • Business News
    • Technology News
    • Policy & Regulations
  • Markets
    • Market News
    • Market Analysis
    • Price Indexes
    • Top Cryptocurrencies
    • Heatmap
  • Opinion
  • Cryptopedia
    • Explained
    • Bitcoin101
    • Ethereum101
    • Bitcoin Cash101
    • ICO101
    • Ripple101
  • Press Releases
No Result
View All Result
The Future Coin
No Result
View All Result
Home Opinion

Bitcoin Price Rallies to $9.6K as Record CME BTC Contracts Expiry Looms

by The Future Coin
May 29, 2020
in Opinion
0
Bitcoin Price Rallies to $9.6K as Record CME BTC Contracts Expiry Looms
152
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter

Bitcoin (BTC) price continues to inch closer to $10,000, rallying 5.68% to reach $9,600 on May 28. After breaking out of the falling wedge pattern on Wednesday night, the top ranked cryptocurrency on CoinMarketCap pushed through $9,350, a level traders expected to present resistance and made a beeline for $9,500. 

Today’s rally brings Bitcoin price back to the $9,600-$9,800 zone where the digital asset traded from May 13 – May 20 and it also increases the likelihood of a return to $10,000. 

Interestingly, data from Cointelegraph and Skew shows a large number of BTC futures contracts, including $184 million in CME Bitcoin Futures scheduled to expire this Friday. 

Total BTC Options Open Interest. Source: Skew.com

Earlier this week Skew  tweeted: 

23k Bitcoin equivalent futures and 10k Bitcoin options are set to expire this Friday on CME. Approx 50% of open interest for each product. Watch the rolls!

Is today just another pump before the dump? 

As reported by Cointelegraph and Arcane Research, Bitcoin price tends to experience increased volatility around CME BTC futures expiry dates. In fact, Arcane Research found that after analyzing price behavior from January 2018 to August 2019, Bitcoin price dropped 75% of the time before futures expire. 

This means that traders will be closely observing Bitcoin price leading up to and after the expiry. According to Cointelegraph contributor Marcel Pechman:

To better gauge the potential impact of the upcoming expiry, traders should monitor CME open interest for the May contract. Investors typically roll over the position over the last few weeks. 

Pechman further explained that: 

If we break $10k,this adds buying power for call options but I like to monitor contango more than funding rate in order to see how the curve of next futures contracts is priced vs spot. In my opinion, the bigger the futures premium, the more bullish big investors are. 

Thus, as the expiry date for $328 million in BTC derivatives approaches, traders can expect more volatility. 

What’s next for Bitcoin?

Alongside institutional and larger sized investors who are demonstrably bullish at the moment, the short-term sentiment amongst retail investors is also shifting from bearish to bullish. 

Crypto Fear & Greed Index. Source: Alternative.me

The Crypto Fear and Greed Index shows that within the last two weeks traders’ sentiment has shifted from ‘fear’ to ‘neutral’. 

The daily chart shows that Bitcoin price has pushed above the lower trendline of the former ascending channel and the price is meeting some resistance at the VPVR high volume node at $9,675. 

BTC USDT daily chart. Source: TradingView

Since breaking from the falling wedge yesterday, BTC price has rallied 8.38% and at some point a retest of the $9,200-$9,300 level should occur. As of now the price continues to trade within a symmetrical triangle and a break above $9,800 would push the price above the triangle trendline and the high volume VPVR node located at the same level. 

The daily RSI is dropping down from 58 and the MACD looks set to converge with the signal line over the coming hours. A rejection at $9,700-$9,800 would raise the chance of the price dropping below $9,500 to retest the $9,200-$9,300 range which is near the 20-day moving average. 

If traders manage to push the price above the pennant trendline and clear the $9,800-$9,900 level, Bitcoin price has a good shot at rallying to $10,300 where the long-term descending trendline from the December 2017 all-time high is located. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.



Source link

EDITOR’S CHOICE

Column: Bubble-wary markets eye ETF crush in tech and crypto

LiteLink Signs LOI to Acquire Equity Stake in Canada’s Premier Cryptocurrency Exchange, CatalX

3 Banks That Have Big Plans for Blockchain and Cryptocurrency

Blockchain in Pharmaceutical Market In-deep Analysis And Experts Review Report 2021-2026 – The Courier

Best car lifts for home garages in 2021

Is Bitcoin the new Gold? 

Best Pick For You

News

  • Altcoin News
  • Bitcoin News
  • Blockchain News
  • Business News
  • Ethereum News
  • Litecoin News
  • Ripple News

Features

  • Market Analysis
  • Opinion
  • Explained
  • Policy & Regulations
  • Top Cryptocurrencies
  • Technology News

Market Tools

  • Market News
  • Price Indexes
  • Bitcoin Price Index
  • Ethereum Price Index
  • Bitcoin Cash Price Index
  • Litecoin Price Index
  • Monero Price Index
  • HeatmapPartner

Cryptopedia

  • Explained
  • Bitcoin101
  • Bitcoin Cash101
  • Ethereum101
  • ICO101
  • Ripple101

© 2020 Coingraph

No Result
View All Result
  • News
    • Bitcoin News
    • Ethereum News
    • Ripple News
    • Litecoin News
    • Altcoin News
    • Blockchain News
    • Business News
    • Technology News
    • Policy & Regulations
  • Markets
    • Market News
    • Market Analysis
    • Price Indexes
    • Top Cryptocurrencies
    • Heatmap
  • Opinion
  • Cryptopedia
    • Explained
    • Bitcoin101
    • Ethereum101
    • Bitcoin Cash101
    • ICO101
    • Ripple101
  • Press Releases

© 2020 Coingraph

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
bitcoin
Bitcoin (BTC) $ 30,939.00
ethereum
Ethereum (ETH) $ 1,264.96
tether
Tether (USDT) $ 1.01
polkadot
Polkadot (DOT) $ 15.79
ripple
XRP (XRP) $ 0.254747
cardano
Cardano (ADA) $ 0.321851
chainlink
Chainlink (LINK) $ 21.49
litecoin
Litecoin (LTC) $ 126.06
bitcoin-cash
Bitcoin Cash (BCH) $ 395.53
binancecoin
Binance Coin (BNB) $ 41.24
usd-coin
USD Coin (USDC) $ 0.999003
stellar
Stellar (XLM) $ 0.243306
uniswap
Uniswap (UNI) $ 14.05
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 30,918.00
aave
Aave (AAVE) $ 277.83
bitcoin-cash-sv
Bitcoin SV (BSV) $ 164.95
eos
EOS (EOS) $ 2.55
monero
Monero (XMR) $ 132.79
havven
Synthetix Network Token (SNX) $ 15.81
tezos
Tezos (XTZ) $ 2.79
nem
NEM (XEM) $ 0.233405
theta-token
Theta Network (THETA) $ 2.08
tron
TRON (TRX) $ 0.028499
celsius-degree-token
Celsius Network (CEL) $ 4.80
vechain
VeChain (VET) $ 0.027579
cosmos
Cosmos (ATOM) $ 7.17
dai
Dai (DAI) $ 1.00
neo
NEO (NEO) $ 21.55
crypto-com-chain
Crypto.com Coin (CRO) $ 0.065937
compound-ether
cETH (CETH) $ 25.64
okb
OKB (OKB) $ 5.32
leo-token
LEO Token (LEO) $ 1.40
binance-usd
Binance USD (BUSD) $ 0.999569
cdai
cDAI (CDAI) $ 0.020985
maker
Maker (MKR) $ 1,357.75
iota
IOTA (MIOTA) $ 0.404364
compound-usd-coin
cUSDC (CUSDC) $ 0.021486
huobi-token
Huobi Token (HT) $ 5.51
dogecoin
Dogecoin (DOGE) $ 0.007840
filecoin
Filecoin (FIL) $ 21.60
dash
Dash (DASH) $ 98.29
solana
Solana (SOL) $ 3.73
sushi
Sushi (SUSHI) $ 7.48
compound-governance-token
Compound (COMP) $ 228.23
avalanche-2
Avalanche (AVAX) $ 11.52
zcash
Zcash (ZEC) $ 81.45
ftx-token
FTX Token (FTT) $ 9.60
yearn-finance
yearn.finance (YFI) $ 28,460.00
kusama
Kusama (KSM) $ 93.99
ethereum-classic
Ethereum Classic (ETC) $ 7.04