• Bitcoin's recovery boosted by the launch of options contracts on CME.
  • BTC/USD may continue the recovery if a move above $8,500 is sustained.

BTC/USD is changing hands at $8,500, having gained over 4.5% on a day-to-day basis and over 5% since the beginning of Tuesday. The first digital currency has been moving within a strong bullish trend during early Asian hours amid strong demand on Bitcoin options launched on CME.

Options on Bitcoin futures launched on CME

CME Group launched much-anticipated Bitcoin options on futures contracts and traded 54 contracts during the first trading session. The industry is enthusiastic about the new instrument as it expands investors' options in terms of risk management. According to the CME announcement, the decision to introduce Bitcoin option contracts was based on growing investor demand. 

Notably, CME options saw better demand than the similar contracts launched on a rival exchange known as Bakkt on December 9.

“The launch of listed options on futures is a significant step in the direction of increasing exposure to Bitcoin. Options are only launched and tradable on a liquid underlying and the trend in BTC futures on the CME is increasing volume and open interest,” Mike McGlone, an analyst with Bloomberg Intelligence, commented.

However, the expert also noted that the results of the first weeks and months might be more relevant for defining a trend.

BTC/USD: technical picture

From the technical point of view, BTC/USD broke the upper boundary of the descending wedge and came close to 50% Fibo retracement for the upside move from December 2018 low to July 2019 high. Once this barrier is sustainably broken the upside momentum will gain traction with the next focus on psychological $9,000 reinforced by SMA200 daily. 

On the downside, if a move above $8,500 cannot be sustained, the coin may start a correction and return to $8,000 handle. Considering a combination of strong technical levels clustered around this barrier (including SMA100 daily), the downside momentum is likely to slow down here. If it is broken, the sell-off may be extended to aw low as $7,400 (SMA50 daily).

BTC/USD daily chart

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Price Analysis: BTC bulls may hit a brick wall on approach to $9,800

Bitcoin (BTC) extended the recovery to trade at $9,750 at the time of writing. The first digital asset bottomed at $9,300 on February 19 amid massive sell-off and managed to regain some ground since that time. 

More Bitcoin News

Ripple Price Weekly Forecast: XRP/USD road to $0.35 mapped

As the week grinds toa halt, cryptocurrencies are rolling in a positive direction. The positive resonation comes after a couple of days that saw bulls paralyzed in the cryptocurrency market.

More Ripple News

Cardano launched hardfork OBFT; ADA/USD extends the recovery

Cardano (ADA), now the 11th largest digital asset with the current market value of $1.5 billion, has gained 2.7% in recent 24 hours to trade at $0.0590 at the time of writing.

More Cardano News

BCH/USD sprints to $380 amid development tax disagreements

Bitcoin Cash explored the region at $350 as I discussed in the previous article. However, the bulls quickly entered the market ready to buy low and push the price upwards. BCH/USD is already in the green ...

More Bitcoin Cash News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: BTC bulls plot the revenge

Bitcoin's market capitalization settled at $176 billion, which is 62.8% of the total digital assets market.

Read the weekly forecast

BTC

ETH

XRP