Traders believe Bitcoin price has bottomed at $ 29,500, while $ 330 million worth of BTC options expire today
Traders show renewed hope after Bitcoin price held in the $ 32,000 area for the second straight day.
Data from TradingView shows that bulls tried to regroup at $ 32,000, where Bitcoin was stationed all day. But traders are still patiently waiting for further confirmation that Bitcoin may reverse course before fully re-entering the market.
BTC / USDT price chart | Source: TradingView
This is what analysts and investors expect next from the Bitcoin price.
CME futures are seeing an increase
According to a recent report from Delphi Digital, the CME futures premium made a sharp reversal on July 21st. This is an optimistic sign for BTC traders who have bought “cheap” futures. The resulting deferred purchase means a price increase because the price of the futures contract is higher than the spot price of the asset.
Futures Contract Spread Bitcoin 1 month | Source: Delphi Digital
As can be seen in the graph, the Open Interest (OI) of CME Bitcoin futures doubled from 1.25 billion.
While leveraged funds are still net short positions because they are using CME futures to hedge their cash positions, Delphi Digital advises that they may have closed some positions.
“Overall, the creation of new CME futures is a bit of a bullish story as BTC had a small pump to regain its range a few hours after the New York session ended. As noted above, CME futures spreads hit negative levels on July 20th before reversing significantly. All the data suggests that when BTC falls below the price range it has been operating in for months, people will buy futures.
Cash in circulation Enter the exchange Peak near the market low
Another bullish sign that Twitter user IzzyEibani is pointing out is an increase in inflows into the stock market. This is a possible sign that the price is bottoming out.
IzzyEibani tweets:
“A bit of bullish hope for you, inspired by MrBenLilly’s post. The inflow to the stock exchange has risen three times since 2017 and has hit a low point each time. Now the fourth spike has just finished. “
If you take a closer look at the graph, on August 1, 2017, November 30, 2018 and March 12, 2020, there was a similar increase in cash flow into the stock market in three cases as on July 16, 2021. Every time the market was within reached the bottom of the valley shortly after an increase in the inflow.
Bitcoin price vs. line flow in Exchange | Source: CryptoQuant
If the market moves similar to the historical pattern, it is very likely that the recent drop to $ 29,500 will mark the bottom.
Bitcoin Trader is watching $ 32K before $ 330 million BTC options expire today
Today, $ 330 million of OI expires in weekly Bitcoin options. Given Bitcoin’s recent struggle to regain the $ 32,000 support level, the event is an important test of the cops’ willingness to show signs of reversal.
This option expiration could be the first strength test of the recent rally. If the bulls are looking to place $ 32,000 in support, there is no better way than to do as much damage as possible to the neutral to bearish put options.
A total of Approval Choose Bitcoin for the expiration date 23/7 | Source: Bybt
The first signal that bears are trying to dominate is the put-to-call ratio. A ratio of 0.81 reflects a lower number of neutral to bullish call options for the July 23rd expiration date.
However, bears may have set themselves a trap with 96% of put options using an exercise price of $ 32,000 or less. If Bitcoin manages to stay above this level at 3 p.m. on Friday, only $ 8 million put options will expire.
On the other hand, there are $ 29 million calls with an exercise price of $ 32,000. That $ 21 million difference will benefit the cops. While small, it’s the exact opposite of a $ 32,000 decline.
If it doesn’t hold $ 32,000, the bears will be ahead at $ 9 million as only 9% of calls are made at $ 31,000 or below.
None of the results are significant, but the gains can be used for larger monthly options that expire on July 30th. This is the main reason the bulls have to hold their ground to maintain current momentum.
Desert of resistance
Bitcoin’s rally above $ 32,000 has reignited bullish sentiment among many traders, but the road ahead remains fraught with roadblocks.
According to analyst Rekt Capital, many previous levels of support for Bitcoin, including $ 35,000 and $ 37,000, could soon act as resistance.
“Overall, BTC has a number of potential new resistances ahead of it. The red weekly $ 32,200 it lost was support last week. The blue 50-week EMA ($ 33,700) and the black higher low of 2021 (~ $ 34,800) have also failed to hold up lately. These are all old supports and can turn into new resistance. “
Source: Rect capital
At the time of writing, Bitcoin price is in the process of attempting a sustained breakout above $ 32,200 where the price is stuck for most of the day.
You can see the BTC price here.
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Traders believe Bitcoin price has bottomed at $ 29,500, while $ 330 million worth of BTC options expire today
Traders show renewed hope after Bitcoin price held in the $ 32,000 area for the second straight day.
Data from TradingView shows that bulls tried to regroup at $ 32,000, where Bitcoin was stationed all day. But traders are still patiently waiting for further confirmation that Bitcoin may reverse course before fully re-entering the market.
BTC / USDT price chart | Source: TradingView
This is what analysts and investors expect next from the Bitcoin price.
CME futures are seeing an increase
According to a recent report from Delphi Digital, the CME futures premium made a sharp reversal on July 21st. This is an optimistic sign for BTC traders who have bought “cheap” futures. The resulting deferred purchase means a price increase because the price of the futures contract is higher than the spot price of the asset.
Futures Contract Spread Bitcoin 1 month | Source: Delphi Digital
As can be seen in the graph, the Open Interest (OI) of CME Bitcoin futures doubled from 1.25 billion.
While leveraged funds are still net short positions because they are using CME futures to hedge their cash positions, Delphi Digital advises that they may have closed some positions.
“Overall, the creation of new CME futures is a bit of a bullish story as BTC had a small pump to regain its range a few hours after the New York session ended. As noted above, CME futures spreads hit negative levels on July 20th before reversing significantly. All the data suggests that when BTC falls below the price range it has been operating in for months, people will buy futures.
Cash in circulation Enter the exchange Peak near the market low
Another bullish sign that Twitter user IzzyEibani is pointing out is an increase in inflows into the stock market. This is a possible sign that the price is bottoming out.
IzzyEibani tweets:
“A bit of bullish hope for you, inspired by MrBenLilly’s post. The inflow to the stock exchange has risen three times since 2017 and has hit a low point each time. Now the fourth spike has just finished. “
If you take a closer look at the graph, on August 1, 2017, November 30, 2018 and March 12, 2020, there was a similar increase in cash flow into the stock market in three cases as on July 16, 2021. Every time the market was within reached the bottom of the valley shortly after an increase in the inflow.
Bitcoin price vs. line flow in Exchange | Source: CryptoQuant
If the market moves similar to the historical pattern, it is very likely that the recent drop to $ 29,500 will mark the bottom.
Bitcoin Trader is watching $ 32K before $ 330 million BTC options expire today
Today, $ 330 million of OI expires in weekly Bitcoin options. Given Bitcoin’s recent struggle to regain the $ 32,000 support level, the event is an important test of the cops’ willingness to show signs of reversal.
This option expiration could be the first strength test of the recent rally. If the bulls are looking to place $ 32,000 in support, there is no better way than to do as much damage as possible to the neutral to bearish put options.
A total of Approval Choose Bitcoin for the expiration date 23/7 | Source: Bybt
The first signal that bears are trying to dominate is the put-to-call ratio. A ratio of 0.81 reflects a lower number of neutral to bullish call options for the July 23rd expiration date.
However, bears may have set themselves a trap with 96% of put options using an exercise price of $ 32,000 or less. If Bitcoin manages to stay above this level at 3 p.m. on Friday, only $ 8 million put options will expire.
On the other hand, there are $ 29 million calls with an exercise price of $ 32,000. That $ 21 million difference will benefit the cops. While small, it’s the exact opposite of a $ 32,000 decline.
If it doesn’t hold $ 32,000, the bears will be ahead at $ 9 million as only 9% of calls are made at $ 31,000 or below.
None of the results are significant, but the gains can be used for larger monthly options that expire on July 30th. This is the main reason the bulls have to hold their ground to maintain current momentum.
Desert of resistance
Bitcoin’s rally above $ 32,000 has reignited bullish sentiment among many traders, but the road ahead remains fraught with roadblocks.
According to analyst Rekt Capital, many previous levels of support for Bitcoin, including $ 35,000 and $ 37,000, could soon act as resistance.
“Overall, BTC has a number of potential new resistances ahead of it. The red weekly $ 32,200 it lost was support last week. The blue 50-week EMA ($ 33,700) and the black higher low of 2021 (~ $ 34,800) have also failed to hold up lately. These are all old supports and can turn into new resistance. “
Source: Rect capital
At the time of writing, Bitcoin price is in the process of attempting a sustained breakout above $ 32,200 where the price is stuck for most of the day.
You can see the BTC price here.
At home at home
According to AZCoin News
Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page
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