• About Us
  • Privacy Policy
  • Contact Us
Bitbion
Advertisement
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • Prices
No Result
View All Result
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • Prices
No Result
View All Result
Bitbion
No Result
View All Result
Home Market

Market Wrap: Bitcoin Tests $19.5K; Ether Options Interest in Doldrums

December 15, 2020
in Market
0
Market Wrap: Bitcoin Tests $19.5K; Ether Options Interest in Doldrums
Share on FacebookShare on Twitter


Bitcoin has been able to hold above $19,000 as it has for the past several days. Meanwhile, the ether options market on Deribit has dipped in December although a block trade strategy in the $600-$800 price range has developed.

  • Bitcoin (BTC) trading around $19,510 as of 21:00 UTC (4 p.m. ET). Gaining 1.6% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $19,053-$19,555 (CoinDesk 20)
  • BTC above its 10-hour and 50-hour moving averages on the hourly chart, a bullish signal for market technicians.

Bitcoin trading on Bitstamp since Dec. 12.
Source: TradingView

Bitcoin’s price continues to climb for the fourth consecutive day, going as high as $19,555 as of press time and breaking out of a $19,200-$19,400 range for the second time in the past 24 hours.

Read More: Bitcoin May Have Hit Wall of Profit Takers Around $19,500: Analyst

However, some resistance in the form of sell orders around the $20,000 price level may limit the amount of upside in December. 

“It is an interesting picture: From one side it’s clear ‘buy the dip’ mood, from the other side we have $20,000 as a big resistance,” said Misha Alefirenko, co-founder of VelvetFormula, a digital asset liquidity provider. “It feels very bullish on charts.” 

According to CoinDesk 20 data, bitcoin has kept above the $19,000 price point since Dec. 13.

Historical bitcoin spot price the past week.
Source: CoinDesk 20

While bitcoin seems to be hitting bull mode after dipping below $17,800 this past Friday, Jason Lau, chief operating officer of San Francisco-based cryptocurrency exchange OKCoin, expects some selling to cap a fervent 2020 for the crypto markets.  

“The run-up in BTC since March has been extraordinary, so investors and portfolio managers may be seeking to take profits and offload their BTC before end of year for tax purposes,” said Lau. 

Read More: Mt. Gox Creditors’ Trustee Announces Draft Rehabilitation Plan

Lau noted concern the upcoming distribution of long-awaited bitcoin from defunct exchange Mt. Gox might introduce some sell-side dynamics at some point, but he nonetheless remains positive. “Mt. Gox’s upcoming 140,000 BTC distribution is an overhang on the horizon,” he said, “but the fundamentals are still strong as ever.” 

In the bitcoin futures market, open interest cracked $7.4 billion once again, the first time since Nov. 24 and a sign sophisticated investors are increasingly hedging positions by using crypto derivatives.

Bitcoin futures open interest on major venues the past year.
Source: Skew

“After an almost uninterrupted bull run in just two months, the path of least resistance for bitcoin is on the downside, or at least bouncing in the $18,000-$20,000 range for a while,” said David Lifchitz, chief investment officer of quant firm ExoAlpha. Over the past nine weeks, bitcoin has appreciated over 70%, according to historical spot pricing on bellwether exchange Bitstamp.

Bitcoin’s historical spot price on Bitstamp since Oct. 15.
Source: TradingView

Another analyst also sees the $20,000 mark as tough to surpass. “Bulls need a new catalyst to strongly overcome the $20,000 resistance level, else the selling pressure at that level will keep it down,” added ExoAlpha’s Lifchitz. 

That catalyst may not arrive until next year, according to Michael Gord, chief executive officer of trading firm Global Digital Assets. “Once we start 2021, when the budgets for many institutional investors and enterprises reopen I expect to see a surge of new participation in bitcoin and of demand in companies having a strategy to implement digital assets,” Gord told CoinDesk. 

Ether options action subsides in December

The second-largest cryptocurrency by market capitalization, ether (ETH) was up Tuesday trading around $591 and climbing 0.80% in 24 hours as of 21:00 UTC (4:00 p.m. ET).

Read More: DeFi on Bitcoin Gets a Boost as Sovryn Launches on RSK Sidechain

The ether options market on top venue Deribit is in a December slump when compared to late November’s premium volume, according to data aggregator Genesis Volatility.

Historical ether options premium volume on Deribit the past month.
Source: Genesis Volatility

Of note for Tuesday is that a larger-than-normal block trade for ether options popped up, according to Greg Magadini, chief executive officer of Genesis Volatility. 

“Although the overall dollar value of options traded is still lower than November, we saw a nice pickup in block volumes today,” Magadini told CoinDesk. He sees Genesis’ data indicating that an options strategy is developing where traders buy $600 calls while simultaneously selling $800 call options. A call option gives purchasers the right, but not obligation, to buy the underlying instrument (in this case, 1 ETH).  “A big notable block trade we’ve seen today is a March $600-$800 call spread. If ETH is above $800 by March expiration, this position would be worth $350,000.”

Other markets

Digital assets on the CoinDesk 20 are mostly green Tuesday. Notable winners as of 21:00 UTC (4:00 p.m. ET):

  • Oil was up 1.2%. Price per barrel of West Texas Intermediate crude: $47.55.
  • Gold was in the green 1.5% and at $1,854 as of press time.
  • The 10-year U.S. Treasury bond yield climbed Tuesday jumping to 0.910 and in the green 1.5%.

The CoinDesk 20: The Assets That Matter Most to the Market



Source link

Tags: 195KBitcoinDoldrumsEtherInterestMarketOptionsTestsWrap
Share76Tweet47

Related Posts

Who ISN’T Dabbling as Bitcoin Passes $52K, Ether Tops $1,900

Who ISN’T Dabbling as Bitcoin Passes $52K, Ether Tops $1,900

by
February 18, 2021
0

Price PointBitcoin (BTC) was lower after surging on Wednesday to a new all-time high price above $52,000, while ether...

Ether Looks Overleveraged as Cryptocurrency Hits New High Over $1,900

Ether Looks Overleveraged as Cryptocurrency Hits New High Over $1,900

by
February 18, 2021
0

Ether soared to new record highs Thursday, but an overheated derivatives market may suggest higher volatility is on the...

Bitwise Launches DeFi Crypto Index Fund

Bitwise Launches DeFi Crypto Index Fund

by
February 18, 2021
0

Bitwise Asset Management on Wednesday launched a decentralized finance (DeFi) index fund, hoping to capture deep-pocketed investors’ bets on...

Market Wrap: Bitcoin Rallies On After Passing $50K Psychological Level to $52K

Market Wrap: Bitcoin Rallies On After Passing $50K Psychological Level to $52K

by
February 17, 2021
0

Bitcoin broke above $52,000 Wednesday, with a market capitalization nearing $1 trillion.Bitcoin (BTC) trading around $52,231.69 as of 21:00...

Mining Machine Manufacturer Ebang to Start Mining Bitcoins for Itself

Mining Machine Manufacturer Ebang to Start Mining Bitcoins for Itself

by
February 17, 2021
0

The new venture is expected to increase revenue and "optimize" its product offering structure. Source link

Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest
BitTorrent (BTT) Throws Another Jab at Filecoin (FIL)

BitTorrent (BTT) Throws Another Jab at Filecoin (FIL)

November 20, 2020
Institutions are buying Litecoin (LTC) at a 1,200% price premium

Institutions are buying Litecoin (LTC) at a 1,200% price premium

November 22, 2020
Litecoin Price and Hashrate Diving Down; What’s Next?

Litecoin Price and Hashrate Diving Down; What’s Next?

November 25, 2020
3 Reasons Why XRP is Unlikely to Benefit From Ongoing Altcoin Surge

3 Reasons Why XRP is Unlikely to Benefit From Ongoing Altcoin Surge

November 25, 2020
Texas Regulators Clamp Down on Bitcoin ‘Ultra Mining’ Firm

Texas Regulators Clamp Down on Bitcoin ‘Ultra Mining’ Firm

0
Lightning Network’s New Liquidity Marketplace Attracts a ‘Surprising’ Mix of Individuals, Enterprises

Lightning Network’s New Liquidity Marketplace Attracts a ‘Surprising’ Mix of Individuals, Enterprises

0
BitTorrent (BTT) Throws Another Jab at Filecoin (FIL)

BitTorrent (BTT) Throws Another Jab at Filecoin (FIL)

0
Softbank CEO sold Bitcoin at a $130m loss after getting “too distracted”

Softbank CEO sold Bitcoin at a $130m loss after getting “too distracted”

0
Former SEC Director who led Ripple action lands new role at Ethereum law firm

Former SEC Director who led Ripple action lands new role at Ethereum law firm

April 17, 2021
Environmentalists say Bitcoin must do what Ethereum is doing to fix climate impact

Environmentalists say Bitcoin must do what Ethereum is doing to fix climate impact

April 16, 2021
This message was included in a Bitcoin block after the Coinbase listing

This message was included in a Bitcoin block after the Coinbase listing

April 15, 2021
China’s answer to Bitcoin could wreck Macau’s multi billion casinos

Macau’s high-rolling casino industry faces a digital currency threat

April 15, 2021

We have all the latest updated and legitimate information related to Blockchain, Cryptocurrency, latest market rates & trends, prices, new regulations along with every other thing that somehow related to crypto or digital currency market. Our main idea is to provide the kind of news that is original and at the same time, it can prove to be beneficial for our audience.

Categories

  • Altcoin
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Ethereum
  • Litecoin
  • Market
  • Regulation

Archives

  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020

Recent News

Former SEC Director who led Ripple action lands new role at Ethereum law firm

Former SEC Director who led Ripple action lands new role at Ethereum law firm

April 17, 2021
Environmentalists say Bitcoin must do what Ethereum is doing to fix climate impact

Environmentalists say Bitcoin must do what Ethereum is doing to fix climate impact

April 16, 2021
This message was included in a Bitcoin block after the Coinbase listing

This message was included in a Bitcoin block after the Coinbase listing

April 15, 2021
  • About Us
  • Privacy Policy
  • Contact Us

© 2020 bitbion.com

No Result
View All Result
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • Prices

© 2020 bitbion.com