What’s in store for BTC now in the short term?

Bitcoin bulls take control! What’s in store for BTC?

Bitcoin maintained its bullish bias on Friday ahead of the $6 billion options expiry.

Options are contracts that give traders the right to buy or sell an asset at a specific price before a certain expiration date. Data on ByBt.com shows that there are over 100,000 BTC worth of options expiring across multiple cryptocurrency exchanges on Friday 26 March.

As bears and bulls battle each other to claim their preferred strike price, the bitcoin spot market expects of The News Spy big price swings. And this is already happening before the London opening bell.

… is up 4.9 percent at $53,524 (data from Coinbase) after falling to nearly $50,000 in the previous trading session. The cryptocurrency’s move was against the likelihood of an extended downtrend to match the put option strike price, which is near $47,500 and $40,000.

Meanwhile, the majority of call options expiring this Friday targeted the $55,000-60,000 range.

The overall call-to-put ratio shows that the bulls are in control, with bets on a bitcoin price rise 11 percent higher than those with a negative price outlook. This has increased the likelihood of the BTC/USD spot price reaching $55,000 – the second cheapest strike price among bulls.
Bitcoin sees a rally towards $55,000. Source: ByBt.com

The bitcoin options market has pushed the spot price higher, similar to what happened after the January contracts expired. This month, $4 billion worth of options expired, with a bullish call-put ratio as the outlook. The bitcoin price rose more than 100 percent in response.

Options open interest has also jumped this year, from $5 billion at the beginning of the year to about $14 billion currently (time of this writing).

Technical coincidence

Bitcoin’s technical indicators in the daily time frame also showed a higher probability of the price reaching $55,000, albeit without giving a specific date.

The cryptocurrency is consolidating downwards in a falling channel that looks like a bull flag. In retrospect, bull flags appear to be a consolidation phase during strong uptrends and indicate further moves to the upside should the price break above the upper trendline resistance to the upside.

Bitcoin (go to Plus500 bitcoin buying guide) is approaching the upper resistance trendline, which is roughly in the $55,000-56,000 range.

Conversely, it could risk invalidating the bull flag with a break below its support trendline if price swings in favour of the bears. Then it becomes more likely that Bitcoin (new Bitcoin ETF announced by Fidelity!) will reach $47,500 today.

Posted in BTC