This is an analyst’s analyst’s analyst position and the authorized market technician Omkar Godbole.
Like Bitcoin The professions of the Uncharted territory near the record peaks, the traders can seek indices on what comes then, in particular the key levels which could act like magnets or points of resistance.
Here are three important levels that deserve to be looked at closely.
$ 126,100
This level represents the upper limit of the widening or expansion beach model that has been developing since mid-July. The potential resistance is defined by the trend line connecting the summits of July 15 and August 14.
A reversal of this level could trigger a corrective withdrawal downwards towards the lower limit of the beach, represented by the line of trend drawn from the hollows of August 3 and 1.
$ 135,000
An escape from the expansion range would drop to an orientation at $ 135,000, where market manufacturers would currently hold a clear gamma position, depending on activity in listed drunken options followed by Amberdata.
When market manufacturers are a long net gamma, they tend to exchange against market management – buy drops and sell gatherings – to maintain their global neutral exposure on the market. Other things being also equal, this coverage activity tends to alleviate price volatility.
In other words, the level of $ 135,000 could act as resistance on the upper track.
$ 140,000
Finally, $ 140,000 is distinguished as a key level, because deribit data show that the strike call of $ 140,000 is the second most popular on the stock market, having a notional open interest of more than $ 2 billion.
The notional open interest refers to the value in dollars of the number of active or open options contracts at a given time.
The levels with large concentrations of open interest often act as magnets, drawing the price of the underlying assets towards them. A high open interest in the call options suggests that many traders expect the cash price to approach or reach this level.
At the same time, those who have sold these calls, often large institutions, are encouraged to maintain the price below this strike. Their coverage and trading activity around this level can create resistance, which makes the price more difficult to unravel.
