Market Wrapping: $ 19.5K Bitcoin Tests; Ether Options Interested in Doldrums

Bitcoin has been able to hold over $ 19,000 as it has over the past few days. Meanwhile, the ether options market on Deribit has declined in December although a block trading strategy in the $ 600- $ 800 price range has developed.

  • Bitcoin (BTC) was trading at around $ 19,510 at 21:00 UTC (4 pm ET). Earn 1.6% over the previous 24 hours.
  • Bitcoin 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 December 12.
Source: TradingView

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

Read more: Bitcoin May Have Been A Wall Of Profit Recipients Around $ 19,500: Analyst

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

“It’s an interesting picture: From one side it’s clear the ‘buy the dip’ mood, from the other we have $ 20,000 as a major 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 December 13.

Historical bitcoin spot price last week.
Source: CoinDesk 20

While bitcoin appears to be hitting bull mode after dipping below $ 17,800 this past Friday, Jason Lau, chief operating officer of OKCoin’s San Francisco cryptocurrency exchange, expects salesmen to cap keenly 2020 for the crypto markets.

“The period at BTC since March has been remarkable, so investors and portfolio managers may be trying to take profits and offload their BTC before the end of the year for tax purposes,” says Lau.

Read more: Mt. Gox Creditors Trustee Announces Draft Rehabilitation Plan

Lau noted concern over the long-awaited bitcoin distribution of Mt.’s obsolete exchange. Gox may introduce some sales-side dynamics at some point, but it nevertheless remains positive. “Mt. Gox’s upcoming 140,000 BTC distribution is overlapping on the horizon, “he said,” but the fundamentals remain 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 that sophisticated investors are increasingly digging jobs using crypto derivatives.

The future of Bitcoin is opening interest in major locations in the past year.
Source: Skew

“After a near-continuous 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 ExoAlpha’s size company. Over the past nine weeks, bitcoin has appreciated over 70%, according to historic spot pricing on bell-exchange Bitstamp.

Bitcoin historical spot price on Bitstamp since October 15.
Source: TradingView

Another analyst also finds the $ 20,000 mark difficult to surpass. “Bulls need a new catalyst to strongly overcome the $ 20,000 resistance level, otherwise the sales 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 operating officer of trading firm Global Digital Assets. “Once we enter 2021, when the budgets for many institutional investors and enterprises are reopening I expect to see a surge of new participation in bitcoin and demand in companies with a strategy to execute digital assets,” Gord told CoinDesk .

The implementation of Ether options 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 at 21:00 UTC (4:00 pm ET).

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

The ether options market is at the highest Deribit location in the fall of December compared to premium volume in late November, according to data aggregator Genesis Volatility.

Historic ether options premium volume on Deribit last month.
Source: Interchangeability of Genesis

It’s worth noting Tuesday that a larger-than-usual block trade for ether options has emerged, according to Greg Magadini, chief executive officer of Genesis Volatility.

“While the overall dollar value of options traded is still lower than November, we saw a nice rise 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 buyers the right, but not an obligation, to purchase the underlying instrument (in this case, 1 ETH). “A notable big block trade we saw today is the spread of the March call $ 600- $ 800. If ETH is above $ 800 by the end of March, this job would be worth $ 350,000. “

Other markets

Digital assets on the CoinDesk 20 are mostly green Tuesday. Notable winners at 21:00 UTC (4:00 pm ET):

  • Oil was up 1.2%. Barrel price of raw Central Texas Intermediate: $ 47.55.
  • Gold in green was 1.5% and at $ 1,854 at press time.
  • The US Treasury bond yield climbed 10 years on Tuesday jumping to 0.910 and in the green 1.5%.

The CoinDesk 20: The Most Important Assets to Market