$200M BTC options expires as everything looks bullish, except for the Friday price. The focus now shifts to corporate quarterly disclosures.
Bitcon’s Upward Trend
On Friday, Bitcoin had touched $48,000 giving more hopes for a bull run thanks to the low supply and anticipated corporate disclosures.
BTC/USD 1-hour candle chart (Bitstamp). Obtained from: TradingView
Data from TradingView shows Bitcoin’s path towards consolidating its Friday position, as the options expire. Since bouncing off $47,000 on Thursday, the pair made little progress but this did not deter analysts from expounding on the pair’s bullish expectations.
The bullish expectations most likely come from a supply squeeze that is driving prices up – the market is currently experiencing a blend of heightened demand even as long-term holders already own approximately 80% of the supply.
Renowned crypto trader, Pentoshi, noted about the BTC price outlook in a tweet that, “Keep in mind alt supply, and ETF season ahead likely to be key drivers + disclosures.”
$BTC tell me this wasn't a perfect bull flag into a perfect S/R test into demand
Breakout can reclaim PoB = moon soon
Keep in mind alt supply, and ETF season ahead likely to be key drivers + disclosures
4Hr chart below pic.twitter.com/1Em8mMXhOj
— 🧸🔫🐧Pent◎shi Wont DM You (@Pentosh1) September 17, 2021
Another tweet by Michaël van de Poppe confirmed that most analysts are cool about the current market activity. He claimed that, “I don’t think you should worry about the market consolidating here. Quite healthy.” van de Poppe added that greater days lie ahead as Altcoins keep rocking.
I don't think you should worry about the market consolidating here.
Quite healthy.#Altcoins still rocking.
Great months to come in #crypto.
— Michaël van de Poppe (@CryptoMichNL) September 16, 2021
Looking at Binance’s buy and sell levels confirms that the resistance begins at $48,600, which came lower during the consolidation. However, $44,000 is the current buy interest.
BTC/USD buy and sell levels (Binance) as of Sept. 17. Obtained from: Material Indicators
Caution Needed Going Forward
Derivatives platforms revealed calmer conditions cooling market sentiments concerning last week’s major sell-off. In a single day, Bitcoin lost $10,000 as overleveraged trading experienced a wipe-out, and since then leverage has kept a considerably low position.
As the crypto ecosystem experiences marginally positive funding rates, it’s a clear indicator that the market is now better positioned for sustainable growth – a bull run lacking any irrationality.
The co-founders of Glassnode, an on-chain analytics firm, Jan Happel and Yann Allemann commented about the chart below that:
“Traders in Bitcoin futures markets remain reasonably bullish with a positive funding rate returning to perpetual swap contracts.”
Traders in #Bitcoin futures markets remain reasonably bullish with a positive funding rate returning to perpetual swap contracts.
Note how funding rates are positive, but not up to the same level as before the $10k sell-off last week
— Yann & Jan (@Negentropic_) September 17, 2021
Despite the positivity surrounding the crypto market, caution is still advised when choosing a pair to invest in since the impact of crypto goes above and beyond common economic institutions.
Image courtesy of pixabay