In today’s article we talk about three reasons why Bitcoin could be hitting 10K very soon. Etherium options Traders jump the gun as the prices soar up to $280 dollars each and in today’s episode,new price predictions on the top cryptocurrencies that I think are going to be in the top five. And we also cover the current top cryptocurrency prices.
And…. If your not the article reading type we have 2 other formats for you:
The current price of Bitcoin is at $9,510.35 up 0.11%
The current price of Ethereum is at $271 up 3.21%
The current price of EOS is at $2.59 down 2.35%
The current price of XRP is at $0.203733 up 0.82%
The current price of ADA is at $0.122197 down 1.81%
The current price of LINK is at $7.69 up 0.38%
As always this publication is sponsored by CoinCasso cryptocurrency exchange. So if you’re unsatisfied with your crypto currency exchange, like Coinbase that crashes every single time that the price drops or goes up, consider checking out CoinCasso in the link.
Bitcoin jumped above $9,500 on Wednesday, ending a four-week-long low-volatility squeeze.
Now the cryptocurrency looks set to climb toward the psychological hurdle of $10,000, as suggested by several factors.
1. Volatility returns
Bitcoin’s high of $9,551 on Wednesday was its highest level since June 24, according to CoinDesk’s Bitcoin Price Index.
The gain has confirmed a Bollinger band breakout on the daily chart and opened the doors for a move of $400 or more on the higher side, as noted by Adrian Zdunczyk, CEO of trading community The BIRB Nest in a blog post.
Bollinger bands are volatility indicators placed two standard deviations above and below the 20-day moving average.
They had recently narrowed to levels last seen in November 2018 as the cryptocurrency traded in the very restricted range of $9,000–$9,400.
A big move often follows a period of very low volatility.
2. Institutional interest rising
Open interest or open positions in bitcoin futures listed on the Chicago Mercantile Exchange (CME) – considered synonymous with institutional interest – jumped 15% to a one-month high of $452 million on Wednesday.
The metric has risen by 24% over the past three days alongside bitcoin’s uptick from $9,120 to $9,550, according to data source Skew.
Global open interest (as gauged by data from 12 major crypto derivatives exchanges) has risen above $4 billion for the first time since early March.
A price rally is said to have legs if it is accompanied by an uptick in open interest.
3. ‘Risk-on’ markets
The “risk-on” mood in the traditional markets further supports stronger gains for the leading cryptocurrency.
Global stock markets are trading at five-month highs while the U.S. dollar, a safe haven in times of crisis, is languishing near March lows, according to Investing.com.
Bitcoin has recently developed a stronger positive correlation with the equity markets.
It’s worth noting that escalating China-U.S. tensions pose a risk to the equity market rally and possibly bitcoin prices.
Since the start of the week Ether (ETH) has gained more than 17% and the gains appear to be connected to increasing stablecoin use and the rise of DeFi applications.
As reported by Cointelegraph, Ethereum network usage surpassed Bitcoin’s, doubling the volume settled over the entirety of 2019.
Another possibly bullish factor in the background is the Ethereum 2.0 final testnet scheduled for August 4. This appears to have investors in a good mood, despite the current rise in gas fees. Over the past week investors rushed to options markets, sending Ether’s open interest to a record-high $230 million.
Oddly enough, some of these options reached an impressive $720 strike for the December 25 expiry, which is rather optimistic given that it requires a 160% upside.
6,000 of those call options were traded today and another 6,000 call options traded on the September 25 expiry, with strikes ranging from $400 to $880. These trades added over $3.2 million worth of open interest.
Ether surpassing $400 by expiry seems unlikely
What exactly are the odds of the current bets according to the Black & Scholes options pricing model? Deribit exchange presents this information as ‘delta’ and these are the percent-based odds for each strike considering current implied volatility.
According to the above data, the $400 strike for December has a 34% chance of occuring, while the most traded $720 strike has a rather small 11% chance according to the options pricing model.
For this reason, the price paid for each $720 contract has been around 0.025 Ether. The 6,050 options traded today have cost the buyers a mere $42,000, yet it increased open interest by $1.7 million.
The September expiry has even fewer chances
With just over two months until the September expiry, the odds of traders’ $400 ETH optimism are less likely.
The same $400 strike now entices an 18% odd according to the Black & Scholes pricing model, whereas the staggering $720 expiry holds a mere 3%.
As shown above, the options for September expiry are trading below ETH 0.03 apiece so they shouldn’t have the same weight as more modest optimistic strikes.
Put-call ratios can be deceiving
Investors should pay less attention to headlines of options open interest reaching historical highs and focus more on the prices paid for such options. These unlikely strikes above $400 also affect indicators, including the put/call ratio.
Copyright © Coincasso LT UAB 2018-2022