• Bitcoin price is up 10% in seven days, shattering $67,000 threshold on Friday.
  • Over $120 million in total liquidations recorded across crypto market.
  • $2.1 billion worth of Bitcoin and Ethereum options expire today.
  • A stable close above $67K would indicate a change in market structure

Bitcoin (BTC) price continues to show strength even as the market prepares for the weekend. After the April CPI release on Wednesday, and multiple news pointing to retail and institutional interest for BTC exposure through exchange-traded funds (ETF), the pioneer cryptocurrency is closing the week with the right foot forward.

Also Read: Bitcoin Weekly Forecast: Is BTC out of the woods?

Daily digest market mover: Bitcoin rallies, blows over $120 million in positions out the water

Bitcoin price is trading with a bullish bias, boasting up to 10% in gains over the past seven days. In the last 24 hours, it is up by 2.2%, which is not a mean feat even for the king of crypto. With altcoins taking the same cues, the global crypto market capitalization is up by 2.8% to $2.43 trillion.

With the surge, over $120 million in total positions have been liquidated across the market. This is composed of $83 million in short positions and nearly $40 million in long positions.  

Total liquidations

Meanwhile, up to $2.1 billion worth of Bitcoin and Ethereum options expire today. Specifically, 18,000 BTC options are set to expire with a put call ratio of 0.63. The maximum pain point is at $63,000 with notional value of $1.2 billion.

For the layperson, a significant amount of cryptocurrency derivative contracts have reached their expiration date on the same day. These options contracts give the holder the right, but not the obligation, to buy or sell a specified amount of Bitcoin or Ethereum at a predetermined price on a future date.

The expiration of such a large amount of options contracts can sometimes lead to increased volatility in the cryptocurrency market. This comes as traders close out their positions or adjust their strategies based on the expiring contracts. It can also impact the overall sentiment and direction of the market in the short term.

Open Interest, funding rate FAQs

Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.

Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.

Technical analysis: Bitcoin price attempts market structure change above $67,000

Bitcoin price has forayed above the $67,000 level after a series of higher highs on the one-day time frame. After a sequence of lower highs between April 8 and May 9, BTC has overcome the critical threshold of $65,500. If it confirms a candlestick close above the $67,000 level, it would validate a change in market structure.

Typically, a change in market structure is characterized by changes in price behavior, trading volume, volatility and other market dynamics. This shift can be indicative of a transition from one phase to another in terms of market sentiment, investor behavior and market participants' activities.

For BTC, it means a shift from a ranging market to a trending market. Notice the sustained higher lows of the Relative Strength Index (RSI), showing that buyer momentum continues to rise.

The Awesome Oscillator (AO) flipping into positive territory with green histogram bars reinforces this.  A green AO signals that the most recent market momentum is bullish. When it is climbing toward positive territory, it suggests that the bullish momentum is strengthening.

A stable close above $67,206 on the one-day time frame would set the pace for a continuation of the climb toward $70,000 psychological level. In a highly bullish case, BTC could flip this threshold into a support floor and use it as the jumping-off point to target the $73,777 all-time high.

BTC/USDT 1-day chart

On the other hand, a rejection from the $67,000 area could see Bitcoin price retract below $65,500 level. Lower, a key level to watch would be the $63,354 support level. If it fails to hold, late bulls could catch BTC around the $56,000 area, 16% below current levels.


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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Ripple stablecoin unlikely to invite legal trouble from SEC, says Ripple executive

Ripple stablecoin unlikely to invite legal trouble from SEC, says Ripple executive

Ripple, the native token of the XRP Ledger slipped under $0.60, a key psychological support for the altcoin. The two key market movers are the Securities & Exchange Commission’s lawsuit against Ripple and the upcoming stablecoin RealUSD (RLUSD).

More Ripple News

Binance burns over $950 million in BNB, will price cross $700?

Binance burns over $950 million in BNB, will price cross $700?

Binance Coin price is nearly unchanged in the past month. Data from TradingView shows BNB price is $585 at the time of writing. On-chain metrics support a thesis of gains in BNB, as social dominance and volume climbs this week.

More Binance News

Dogecoin price sets for a rally following retest of support level

Dogecoin price sets for a rally following retest of support level

Dogecoin price faces rejection at the 50% Fibonacci retracement. On-chain data shows that DOGE's development activity is growing, suggesting a bullish move ahead. A daily candlestick close below $0.1018 would invalidate the bullish move.

More Dogecoin News

Mt.Gox transfers $2.85 billion in Bitcoin, what to expect from BRC-20, cat-themed meme coins

Mt.Gox transfers $2.85 billion in Bitcoin, what to expect from BRC-20, cat-themed meme coins

Bitcoin worth $2.85 billion was transferred by Mt.Gox, crypto traders anticipate heightened selling pressure on BTC. Bitcoin-related assets like BRC-20 tokens and cat-themed meme coins typically rally or suffer correction in price alongside BTC. 

More Cryptocurrencies News

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin (BTC) price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166.

Read full analysis

BTC

ETH

XRP