Bitcoin (BTC) Price recovery has gathered the traction in the head of the American job report on Friday.
The main cryptocurrency by market value increased to $ 113,000, its highest level since August 28 and has recorded its first higher summit since mid-August for all time of $ 124,000, according to Coindesk data.
In technical terms, a high indicates a potential optimistic reversal of the trend while the price exceeds its peak in the previous short term.
The domination of the Bitcoin market, representing its total cryptography market share, has also climbed a two weeks higher than 59%, compared to a minimum of 57.5%. It points to entries of capital renewed in Bitcoin, a passage from the recent dynamics of the market characterized by the whales which turn out of the BTC and the ether.
Bounce to maximum pain?
BTC prices rebound from Asian session can have been catalyzed by the maximum pain theory, which suggests that prices revolve towards the maximum level of pain approaching options.
Bitcoin Options worth $ 3.28 billion expired at 8:00 am UTC on Deribit, with Max Pain at $ 112,000. It is the price level where buyers of options undergo the greatest loss.
According to theory, when approaching the expiration, sellers of options, generally institutions with a large capital supply, seek to push the price in cash towards the maximum pain point in order to inflict maximum pain on option buyers. They do this by exchanging the underlying assets on the market / term market.
The BTC price exceeded $ 112,000 early Friday in the head of the expiration, aligning on the maximum pain theory almost perfectly for the first time. Maximum pain theory is widely discussed and considered valid on traditional markets, where it is used to anticipate price movements near expiration. However, some cryptographic experts remain uncertain as to whether the theory works effectively on the Bitcoin market.
Merchants are now waiting for the American job report at 8:30 am he for the next potential driver.
