Bitcoin (BTC) rose to its highest point from August 22, Wednesday, reaching $ 117,300 before withdrawing at $ 116,400.
Much of Wednesday’s emotion is yet to come, depending on the Federal Reserve interest rate at 18:00 UTC and the subsequent press conference. The Fed is expected to reduce rates at 25 basic points,
The early movement was intriguing because it stopped at the same point as a notable “GAP CME”, the disparity between where Bitcoin’s futures close a Friday and open a Sunday.
With that gap now full, Bitcoin could begin to consolidate in a range away from the critical support levels to $ 110,000, this will probably lead to greater capital rotation in Altcoins.
According to Coinmarketcap data, Bitcoin’s domain has reduced to 57%, the lowest point since January, suggesting that the market is inclined towards speculative high -site plays instead of BTC in a period of low volatility.
Derivative positioning
- The open interest of BTC Futures in the main places has increased up to $ 32 billion during the past week.
- At the same time, the three-month-old annualized base has begun to compress again at approximately 6-7% between Binance, OKX and Deribit, leaving the transport trade only marginally profitable.
- While OI’s growth suggests a growing activity and participation in the market, the narrowing base indicates that the directional conviction, particularly on the upward side, is weakening, and merchants less willing to pay a high premium for the future exhibition.
- The options data also present a complex image of the feeling of the market.
- While the BTC implicit volatility term structure table shows a upward inclination curve, which suggests that the market expects long -term volatility to be higher than in the short term, other metrics point to a more immediate bearish perspective.
- Specifically, the 25 Delta bias table indicates that bias is flat or slightly negative for short -term options (1 week, 1 month), which means that merchants are paying a premium for calls to obtain protection against decreases.
- This short-term bassist feeling is contradicted directly by the volume graph of 24-hour Putt-Llame calls, which shows a greater volume of calls than the puts, which indicates that in the last 24 hours, most of the options were positioned for a price increase.
- The APrs financing rate in the main places of perpetual exchange has recently begun to show some collection with annualized BTC funds currently 17%.
- If the upward trend is maintained and followed by other places, financing rates would suggest a growing conviction in a directional and more bullish commitment of prices.
Token talk
By Oliver Knight
- Bitcoin (BTC) continues to stubbornly exchanged in a narrow range, slightly increasing to $ 116,000 in the last 24 hours, but not increasing the impulse for a break.
- The Altcoins are taking advantage of the lack of volatility with several peaks that lead to Bitcoin’s domain from sliding to a minimum of eight months of 57%, according to CoinmarketCap data.
- Domain is a metric commonly used to assess whether capital flows to Bitcoin or more speculative altcoins, as is the case.
- Another bullish factor for Altcoins is that the average Cryptographic Token RSI, an abbreviation for the relative force index, is 45.47. This means that alternative alternatives are getting into “overendon” territory instead of “overcompra”, suggesting that several tokens are prepared for upward extension.
- It is worth noting that Bitcoin’s domain fell to 33% in 2017 and 40% in 2021, which means that Altcoins still has more space to run.
- Much will depend on how Bitcoin acts if you start trying maximum records at $ 124,000. A rupture in a significant volume will probably lead to capital rotation to the largest cryptocurrency as investors try to capitalize on a high potential cycle, with personalities such as Eric Trump asking for $ 175,000 before the end of the year.
