Bitcoin (BTC) has reached its highest point since August 22 Wednesday, reaching $ 117,300 before retreating at $ 116,400.
Much of Wednesday’s excitement has not yet come, tilting the interest rate decision of the federal reserve at 6:00 p.m. UTC and a subsequent press conference. The Fed should reduce the rates of 25 basic points,
The early move was intriguing because it stopped at the same point as a notable “CME Gap”, the disparity between the place where future bitcoin closes on Friday and open on Sunday.
With this now filled gap, Bitcoin could start to consolidate in a range far from the levels of critical support at $ 110,000, this will probably lead to a capital rotation in altcoins.
According to CoinmarketCap data, the dominance of Bitcoin is reduced to 57%, the lowest point since January, suggesting that the market is looking at speculative Altcoin as opposed to the BTC in a period of low volatility.
Positioning of derivatives
- BTC Futures Open Interest in the main sites slipped up to $ 32 billion in last week.
- At the same time, the three-month annualized database started to compress about 6-7% again through Binance, OKX and Deribit, leaving the trade in marginally profitable portage.
- Although the growth of the OI suggests an increase in activity and engagement on the market, the narrowing basis indicates that directional conviction, in particular on the bullish side, weakens, traders less willing to pay a high premium for future exposure.
- Option data also has a complex image of the feeling of the market.
- While the graph of the structure of the terms of implicit volatility BTC shows an ascending slope curve, which suggests that the market expects long -term volatility to be higher than in the short term, other metrics indicate a more immediate bearish perspective.
- More specifically, the 25 delta bias graphic indicates that the bias is stable or slightly negative for short -term options (1 week, 1 month), which means that traders pay a bonus for calls on calls to obtain downward protection.
- This short -term lowering feeling is directly contradicted by the 24 -hour call graph of the call 24 hours a day, which shows a higher volume of calls than Put, indicating that during the last 24 hours, most options were positioned for a price increase.
- The APR financing rate in the main perpetual exchange sites has recently started to show a collection with annualized BTC financing currently 17%.
- If the upward trend is maintained and followed by other places, the funding rates would suggest an increasing conviction in a directional and more optimistic bet on prices.
Talk about tokens
By Oliver Knight
- Bitcoin (BTC) continues to obstinately negotiate in a tight range, increasing slightly to $ 116,000 in the last 24 hours, but failing to take momentum for a break.
- Altcoins capitalize on the lack of volatility with several points, which led to the domination of Bitcoin which slides at a lower eight months of 57%, according to CoinmarketCap data.
- Domination is a metric commonly used to assess whether capital takes place in bitcoin or more speculative altcoins, as seems to be the case.
- Another bullish factor for altcoins is that the Middle Crypto token RSI, an abbreviation for the relative force index, is 45.47. This means that altcoins are looking into a territory “occurring” as opposed to “too hidden”, suggesting that several tokens are ready for an upward extension.
- It should be noted that the domination of Bitcoin dropped up to 33% in 2017 and 40% in 2021, which means that altcoins have even more space to run.
- Many will depend on how Bitcoin acts if it starts to test the record heights at $ 124,000. An escape from a large volume will probably bring back a rotation of capital to the greatest cryptocurrency while investors will try to capitalize on a high potential cycle, personalities such as Eric Trump providing $ 175,000 before the end of the year.
