Bitcoin has stalled in recent weeks, but experts say it remains a “cheap and safe” investment. Bitcoin will be used to bootstrap the next bull run that could see prices rise as high as $80,000 by January 2019.
The “bitcoin price” is a topic that has been in the news. The cryptocurrency has stalled, but traders still expect to see $80K by January.
Choosing a period for technical analysis is always a challenge, but the longer the trend, the more likely it is to succeed. Those looking at the 3-day Bitcoin (BTC) chart, for example, will undoubtedly see an ascending channel pattern that began in late June.
On FTX, the price of bitcoin is expressed in US dollars. Tradingview is the source of this information.
On FTX, the price of bitcoin is expressed in US dollars. Tradingview is the source of this information.Bears will constantly find methods to explain their positions, despite the fact that Bitcoin has reached new all-time highs as a result of the US consumer price spike of 6.2 percent, the most in 30 years.
Long-term investors, on the other hand, have ceased net accumulating and are already diversifying into altcoins, according to data from on-chain analytics company Glassnode. The latest net selling from that group of investors, according to analyst Willian Clemente, was the first in six months, indicating a “sell into strength” move.
It’s worth noting that on November 14, the Bitcoin network was updated to boost scripting and privacy capabilities. From a trading standpoint, this might result in a “sell the news” situation, given the improvement was widely anticipated by the community.
Pro traders are neutral to positive, according to data.
The futures basis rate may be used to determine if professional traders are bullish or bearish. The difference between longer-term futures contracts and current spot market values is measured by this indicator, which is sometimes referred to as the futures premium.
In robust markets, a 5 percent to 15% yearly premium is predicted, which is referred to as contango. This pricing disparity is the result of sellers requesting more money in order to defer payment for longer.
The basis rate for Bitcoin 3-month futures. Laevitas.ch is the source of this information.
Notice the 20 percent increase on November 9th, when Bitcoin gained 14 percent in three days. BTC fell 9% after hitting an all-time high of $69,100 on Nov. 10, reversing this short period of undue confidence.
The basis indicator is now at a robust 12 percent, indicating that these traders are confident.
Options traders are less optimistic.
It’s also a good idea to look at options markets to rule out futures-specific externalities.
The 25 percent delta skew compares call (buy) and put (sell) options that are comparable. When fear is prominent, the measure will become positive because the premium for protective put options is greater than for equivalent risk call options.
When greed is the dominant emotion, the 25 percent delta skew indicator shifts to the negative side.
Deribit BTC options have a delta skew of 25%. Laevitas.ch is the source of this information.
The skew indicator should be between -8 percent (greed) and +8 percent (fear). The last time the indicator went outside of this range was on September 29, when it reached +10 percent. Surprisingly, the same day marked the conclusion of a 23-day bear market that saw Bitcoin fall from $52,700 to $41,000.
The present neutral 25 percent delta skew might be regarded as a “glass half full” since professional traders are unconcerned by the 95 percent year-to-date gains.
Data reveals that there is opportunity for further leverage from Bitcoin purchasers, who would ideally see the price trade inside the ascending channel that began in late June.
The author’s thoughts and opinions are purely his or her own and do not necessarily represent those of Cointelegraph. Every investing and trading decision has some level of risk. When making a choice, you should do your own research.
Bitcoin has stalled, but here’s why pro traders still expect $80K by January. The cryptocurrency is currently trading at about $8,500 and has an expected price of $80,000 by the end of 2019. Reference: bitcoin price target.
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