Market Analysis

Bitcoin sees ‘quite healthy’ consolidation on $200M BTC options expiry day

Everything is bullish except the price on Friday as $200 million in options expire and attention focuses on corporate quarterly disclosures.

Bitcoin (BTC) ranged around $48,000 on Friday as hopes of a bull run endured thanks to low supply and upcoming corporate disclosures.

Bitcoin sees ‘quite healthy’ consolidation on $200M BTC options expiry day

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Anticipation builds for cross-crypto breakout

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD continuing to consolidate into Friday, with the latest options expiry now due.

The pair had made little progress since bouncing off $47,000 the day before, but bullish expectations among analysts were also firmly intact.

As Cointelegraph reported, these revolve around a “supply squeeze” driving prices up — a combination of increased demand while long-term holders already own almost 80% of the supply.

“Keep in mind alt supply, and ETF season ahead likely to be key drivers + disclosures,” trader Pentoshi noted as part of comments on the BTC price outlook.

Cointelegraph contributor Michaël van de Poppe was similarly cool about current market activity.

Read more:  Bitcoin's 'real' volume doubles previous all-time high

“I don’t think you should worry about the market consolidating here. Quite healthy,” he summarized on the day. 

“Altcoins still rocking. Great months to come in crypto.”

A look at buy and sell levels on major exchange Binance confirmed resistance beginning at $48,600, this having crept lower during the consolidation. Buy interest, meanwhile, still lay at $44,000.

Bitcoin sees ‘quite healthy’ consolidation on $200M BTC options expiry day

BTC/USD buy and sell levels (Binance) as of Sept. 17. Source: Material Indicators

“Bullish but cautious”

Calmer conditions on derivatives platforms likewise cooled concerns over a repeat of last week’s major sell-off. 

Related: New Bitcoin price model suggests BTC won’t go below $39K again

When Bitcoin lost $10,000 in a single day, overleveraged trading saw a wipe-out, and leverage has since stayed considerably lower.

Slightly positive funding rates suggest that the market is much better positioned for sustainable upside — bullish, but without irrationality.

“Traders in Bitcoin futures markets remain reasonably bullish with a positive funding rate returning to perpetual swap contracts,” Yann Allemann and Jan Happel, co-founders of on-chain analytics firm Glassnode, commented on an accompanying chart. 

“Note how funding rates are positive, but not up to the same level as before the $10k sell-off last week The Bitcoin market is bullish, but cautious.”

Bitcoin sees ‘quite healthy’ consolidation on $200M BTC options expiry day

Bitcoin futures funding rates annotated chart. Source: Allemann and Happel/Twitter

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button