Looming Expiry and BTC Price Highs

Annabella Cornelly

BTC rally is strong and has reached nine thousand six hundred USD. What it means is that the crypto may soon be worth ten thousand USD. Analysts are looking forward to the events happening tomorrow since on Saturday the participants will watch CME BTC contracts expiry.

Today’s data shows that the price keeps on approaching ten thousand USD, reaching five point sixty-eight percent to get close to nine thousand six hundred USD. The wedge pattern is behind and that occurred two days ago. Finally, the crypto pushed through nine thousand three hundred and fifty USD. This is a level most participants hoped to illustrate resistance. They even made a beeline for nine thousand five hundred USD.

The recent rally has brought BTC price back to the zone of difference in two hundred USD. It was one week dedicated to trading the digital asset. It also meant a possible return to ten thousand USD.

There is plenty of information from agencies showing how great the number if the crypto’s futures contracts might be. This includes one hundred and eighty-four million USD in futures. All of them are scheduled and their expiry will happen on May 29.

Recent Data on Options Open Interest. Taken from: Skew.com

Many traders say that both futures along with options worth twenty-three thousand and ten thousand accordingly must expire in a few hours. The market offers about fifty percent of open interest on each of the products.

Preparing for another Fall after a Rise

Specialists agree that the BTC’s price is likely to go through increased volatility which most predict to occur closer to the dates. Researchers noted that after studying price and its behavior within six months two years ago, it dropped seventy-five percent of the entire cases before futures approach their expire.

Most traders feel curious to know how the crypto will behave right before and a bit after the date. Additionally, the event is approaching and it will make an impact. Analysts advise all to monitor the data and keep track of the interest curve. As a rule, investors move over the position within the following few weeks.

If the crypto breaks ten thousand USD, this will give more purchase power for options. Others say it’s essential to monitor contango to watch the flow of the following futures contracts be estimated and priced vise spot. If the futures result is massive, then larger investors will stay bullish.

We can expect an increase in volatility, but then the expiry date for three hundred and twenty-eight million USD in Bitcoin derivatives should soon approach.

The Crypto’ Future Expectations

Currently, institutional investors appear completely bullish and so are all other larger sized participants. Retail traders and investors are experiencing a shift. They are moving from bearish trends to bullish waves.

Crypto ‘Indices’ for the fearing and greedy factors. Taken from: Alternative.me

The two indexes demonstrate that in the last half a month traders’ expectations have moved and turned neutral instead of fear. The daily data shows that the BTC’s price has moved over the trendline, which was low. Now the price is facing slight resistance.

Daily charts of BTC/USDT. Taken from: TradingView

After the events occurring yesterday, the crypto’s price has rallied eight point thirty-eight percent. Some expect a retest reaching up to nine thousand three hundred USD. The price now keeps on trading. The traders might manage to push the price above the line and clear the level of nine thousand nine hundred USD. It would lead to further rallying toward ten thousand three hundred USD. This is how it would reach the line last seen three years ago. How true analysts’ predictions are will be clear in the coming hours.