Market Wrap: Bitcoin Hovers Around $34.2K While Options Traders Pay Up for Possible ETH Upside

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After a record day in the spot volume, the Bitcoin price rose, fell and rose again. Meanwhile, most ether options traders are bearish, with some paying in case they near record highs.

  • Bitcoin (BTC) is trading at around $ 34,278 as of 9:00 PM UTC (4:00 PM ET). Profit of 3% in the last 24 hours.
  • Bitcoin 24-hour range: $ 32,528- $ 36,605 (CoinDesk 20)
  • BTC below the 10-hour and 50-hour moving averages on the hourly chart, a bearish signal for market technicians.

Bitcoin trading on Bitstamp since January 9th.

Source: TradingView

The price of Bitcoin had an up and down day that rose to $ 36,605 around 8:00 UTC (3:00 a.m. CET), fell to $ 32,528 at 2:30 p.m. UTC (9:00 a.m. CET) and then rose again to $ 34,278 Press time.

Andrew Tu, a senior executive at Quant trading firm Efficient Frontier, sees the $ 36,000 price level as “resistance,” an area where bearish traders appear to be prepared to hit the sell button on Bitcoin. “Right now, bulls are challenging the $ 36,000 resistance. It couldn’t go over $ 36,600 during the afternoon Asian hours, ”Tu told CoinDesk. “When the US East Coast woke up, the market began to bid the price up again.”

Monday’s bitcoin spot volume was the highest ever seen since CoinDesk 20 data was recorded on eight major spot exchanges. An astonishing $ 13.3 billion in volume traded on Monday, the highest since December 22, 2017 when the volume hit $ 9.7 billion.

Bitcoin volumes on eight major spot exchanges over the past five years (Shuai Hao / CoinDesk Research)

Source: CryptoCompare

However, the spot volume was much lower on Tuesday at $ 5.1 billion at press time.

Bitcoin volume on eight major spot exchanges last month (Shuai Hao / CoinDesk Research)

Source: CryptoCompare

“There will likely be a struggle to break that $ 36,000 to $ 36,600 range,” said Efficient Frontier’s Andrew Tu.

Volume will likely play a role in this fight as the blockbuster spot exchange activity happens around the opening of the week. However, this was due to large sales volumes that resulted in the world’s oldest cryptocurrency to spend 20% in 24 hours.

Continue reading: Bitcoin whales piled up during Monday’s crash

“Bitcoin hit a high of $ 42,000 just before the weekend,” said David Russell, vice president of market intelligence for trading technology company TradeStation. “Volume dries up when institutional investors are absent and other markets are closed. That left Bitcoin in midair with no buyers to back it up. “

In the Bitcoin options market, traders seem to like their chances of a price of $ 30,000 per 1 BTC on January 21st. The market-based probabilities have a 62% chance of Bitcoin above $ 30,000 by that date, a 55% chance of $ 32,000, and 47% expect the world’s oldest cryptocurrency to be $ 34,000 by the end of the month.

Probability of the Bitcoin spot price based on the options market on January 21st.

Source: Skew

“Bitcoin is a volatile asset,” said Russell of TradeStation. “You can’t expect something to double and not retreat in a couple of weeks.”

Continue reading: With Bitcoin regained, options traders are betting on a $ 52,000 move by the end of January

Michael Gord, chief executive of trading firm Global Digital Asset, said he expected institutes to continue collecting bitcoin, which could help support the asset starting at $ 30,000. “I think we will see a huge revival when big brands start to secure their treasury on the blockchain.” he said.

Bets are placed on potential ether FOMO

Ether (ETH), the second largest cryptocurrency by market capitalization, gained 6% on Tuesday, trading at $ 1,085 and rising 6% in a 24-hour period at 9:00 p.m. UTC (4:00 p.m. ET).

On Monday, the premium traded on Deribit’s ether options market heavily favored the calls that give owners the right, but not the obligation, to buy an asset at a certain price. According to CoinDesk 20 data, Ether’s all-time spot price high is $ 1,448.

The premiums were traded on the Deribit Ether Options Market on Monday.

Source: Genesis Volatility

While the ether options market strongly favors strikes below the ETH price of USD 800, 68% of the call premiums paid on Monday apparently come from traders who want to hedge the risk of a further parabolic rise in ether, according to the data aggregator’s investor note Genesis Volatility from Tuesday.

“Options traders are willing to pay much more for ETH’s upside option risk than for downside risk,” Genesis wrote. “This activity indicates that traders are seeing an asymmetry in the volatility of price action, also known as ‘crash-up risk’ and FOMO sentiment.”

Other markets

The digital assets of CoinDesk 20 are all green on Tuesday. Notable Winners as of 9:00 PM UTC (4:00 PM ET):

Continue reading: The UK Treasury is asking for feedback on the cryptocurrency, Stablecoin Regulation

  • Oil rose 1.8%. Price per barrel of West Texas Intermediate Crude: $ 53.14.
  • Gold was in the green at 0.73% and at $ 1,856 at press time.
  • The 10-year US Treasury yield fell to 1.134 on Tuesday and was in the red by 1.3%.

The CoinDesk 20: The assets that matter most to the market