Bitcoin [BTC] Price Enroute 6th Positive Weekly Close, Will CME Expiry Begin Reversal?
Bitcoin [BTC] price gained 4.93% on a daily scale, as the price touched a high at $7,775. The volatility is expected to continue today as well with the futures and options expiry at CME.
Bitcoin [BTC] price inks 100% recovery from the drastic crash in March last month at $3850. The strong bullish candle causes massive liquidations (nearly $75 million), as the sentiments are shifting towards positive.
Bitcoin [BTC] has had a strong recovery to its price from March lows and is currently looking to log six consecutive positive weekly candles. Crypto derivatives trader, Jo, tweeted,
Now it looks like $BTC is trying to close a 6th green week in a row.
It’s also important to note that CME expiry tomorrow *could* involve a change of trend. When Bitcoin decides to end its weekly positive streak, I want to be on the right side.
An End to Positive Rally?
Data analytics website Skew tweeted on the 27k bitcoin options are expiring today. Now, since these are European style options, the settlement at expiry is imminent at closing time.
Moreover, the ratio of put of call options Open Interest and volume has been in the range of 0.4-0.6. Hence, the settlement of call options is more likely to cause a drop.
The markets have returned to a contango with futures prices of CME contracts trading higher for coming months. Moreover, the BitMEX funding rates have turned positive as well. These are signs which favour the bears at the moment.
At the expiration of derivatives contract in the previous month we saw a dip in prices, which could be a signal of long orders/ call options taking profits.
Currently, a huge gap from the previous month is left unfilled up to $9125, which is bullish. Moreover, as we head close to the weekend, the closing today will be instrumental in either continuation of a bullish trend or a fake-out before bearish reversal.
Do you think the rally will continue or we correction is due? Please share your views with us.
![Bitcoin [BTC] Price Enroute 6th Positive Weekly Close, Will CME Expiry Begin Reversal?](https://thebitcoinstreetjournal.com/storage/2020/04/cOIK6D.jpg "Bitcoin [BTC] Price Enroute 6th Positive Weekly Close, Will CME Expiry Begin Reversal?")
![Bitcoin [BTC] Price Enroute 6th Positive Weekly Close, Will CME Expiry Begin Reversal?](https://thebitcoinstreetjournal.com/storage/2020/04/ciukzv.png "Bitcoin [BTC] Price Enroute 6th Positive Weekly Close, Will CME Expiry Begin Reversal?")
Binance Futures Limited Offer: Use this link to register & get 10% discount on fees.
Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
![Bitcoin [BTC] Price Enroute 6th Positive Weekly Close, Will CME Expiry Begin Reversal?](https://secure.gravatar.com/avatar/84f90d8372d4cef2ebccb8b12ac29dcb?s=96&d=mm&r=g "Bitcoin [BTC] Price Enroute 6th Positive Weekly Close, Will CME Expiry Begin Reversal?"){kind=avatar}
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
Published at Fri, 24 Apr 2020 06:01:43 +0000
Share on Facebook
Share on Twitter
Share on Linkedin
Share on Telegram