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Bitcoin prices have been volatile for the past few weeks, but have managed to increase in value at the same time. This week, bitcoin derivatives markets, especially futures and options, show that crypto asset traders can expect more swings in the future. Some traders believe that the price of the digital currency could fill two open gaps in CME Group’s Bitcoin Futures chart with an upward trajectory towards $ 18,000.
During the past days bitcoin (BTC) spikes over the $ 16k handle, as countless cryptocurrency markets have seen one significant profits this week. On Sunday morning, November 14, 2020 BTCThe price slid below the $ 16k zone to a low of $ 15,750 during the early morning trading sessions (EST).
The asset has regained some of its lost value and continues to struggle psychological $ 16k region at the time of publication.
Meanwhile, bitcoin derivatives markets have seen intense action as both futures and options markets show signs of things to come. On November 6, 2020, Skew.com tweeted about how the open interest of bitcoin options ‘got big’.
– skewed (@skewdotcom) November 6, 2020
Essentially, open interest is the valuation of contracts initiated in futures markets held on exchanges such as Deribit and CME Group. Skew’s chart shows that BTC the outstanding interest in options is at a record high (ATH), with Deribit capturing the lion’s share of the outstanding interest.
CME Group, Okex and Ledgerx are following Deribit’s lead and CME’s overt interest has grown enormously. In crypto derivatives markets leaning towards bitcoin futures and perpetuals, open interest rates have also hit an ATH this month.
With Bitmex’s open interest lower since the recent American researchmost derivatives exchange rates are distributed almost evenly, except for Bakkt, which is the third lowest exchange in terms of outstanding interest. Deribit is also not leading when it comes to bitcoin futures markets, and Okex has the leading position in this arena.
In addition to open interest and trading volumes on bitcoin futures and options markets, BTC Traders are paying attention to two specific price differences in CME Group’s Bitcoin Futures chart. The price differences that were not filled in show targets of $ 17,700 and $ 18,500 and they stem from BTC‘s parabolic rise three years ago.
Gaps cannot be filled in either way, and there are a few lower regions that are not filled in on CME Group’s Bitcoin Futures chart. For example, on May 16, 2019 BTC prices slid to $ 6,600 in no time, thanks to an unfilled CME gap at the same level.
Financial markets show that the process of ‘filling the gap’ can also take place higher up BTC Prices. Bitcoin could move towards these positions ($ 17,700 – $ 18,500) to fill the void of the CME chart and either consolidate, move higher, or be pushed back into lower price ranges.
Speculative assets, which are specific to certain CME futures markets, usually have different variations in price differences and BTC is no different. On November 6, 2020 BTC filled the gap shown on charts recorded December 21, 2017, at $ 16,455 to $ 16,560. There are also two gaps on the flip side to keep in mind; one for $ 11,095 and another for $ 11,505, which could be just as good for the $ 17,700 hole.
What do you think about the recent rise in open interest on futures and options and the gaps in CME bitcoin futures that could fill the $ 18k price range? Let us know what you think about this topic in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Skew.com,
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