The Bitcoin price (BTC) has increased to record vertices, arousing optimism between investors. However, the expected coverage activities of merchants / dealers, often an invisible force, at certain price levels, can slow down the ascent.
The main cryptocurrency exceeded the $ 111,000 mark during Asian hours, analysts providing for a stronger demand.
“The over-the-counter offer can be dried, which increases prices. This would not be reflected in the exchange volumes or the derivative market. If that is the case, prepare for wild driving, because greater demand on board with a Bitcoin Treasury Environment Bitcoin and, perhaps, a less elastic dry-record market”, said Alexander S. CEO of Sec-Recording Invest Councor, TWE Premier.
Blume explained that the treasury bills of companies that bought “mass” increasingly in the lead, and rumors are that sovereign demand for cryptocurrency has resumed.
Ryan Lee, Bitget Chief Analyst, said the BTC could come together at $ 180,000 by the end of the year, led by Entrances to FNB Spot, a slower supply of supply after reduction and increasing institutional adoption.
“The recent moody downside from the American sovereign credit note to AA1 is another key macro catalyst, arousing renewed interest in BTC and ETH as hedges against Fiat risk. BTC’s ability to maintain more than $ 103,000 in the midst of volatility highlights the change of the market to crypto as a strategic reserve reservete,” said Lee.
Concentrate on $ 115,000
Although the track of the slightest resistance is higher, the pace of the Haussier movement can be disputed by the potential coverage activities of market options / dealers at around $ 115,000 and higher price levels, according to Jeff Anderson, head of Asia at STS Digital.
The concessionaires are entities responsible for creating liquidity in an order book of an exchange. They are always on the opposite side of traders’ positions and earn money from bizarre spread, while constantly striving to maintain neutral exposure at net prices.
Data market data deribit BTC options, followed by Amberdata, show that dealerships have a significant “positive gamma” exposure to $ 115,000 and more exercise price levels.
When the gamma of concessionaires is positive, this means that they are long appeal or installation options. In this case, their delta (market exposure) increases when the underlying asset increases. Thus, their Delta coating mandate requires further selling the underlying asset as the price increases and vice versa.
The control flow therefore acts as a contrary force, limiting price volatility, Anderson told Coindesk.
The Gamma dealer is considerably positive, from $ 115,000 to $ 150,000, thanks to the interest of investors for the (crushing) sale of higher striking call options to generate additional return in addition to their assets.
“There are a lot of positive gamma on the market due to replaceers. [rally] Could really start to leave, “said Anderson.
