Bitcoin Market Update: BTC/USD may retest 2020 high as options trading volumes skyrocket


Share:
  • Bitcoin (BTC) has been consolidating gains since July 27.
  • The trading volumes on Bakkt and Deribit hit record high.

Bitcoin (BTC) settled below $11,000 after a short-lived spike above $11,400 on Monday, July 27. At the time of writing, BTC/USD is changing hands at $10,980, mostly unchanged both on a day-to-day basis and since the beginning of Wednesday. Bitcoin's market capitalization exceeded $200 billion, while its market share increased to 62.4%.

Bitcoin's on-chain data

According to the data provided by Intotheblock, 91% of all Bitcoin holders are making money at the current BTC price. It means that over 28 million BTC addresses contain coins purchased below the current price. Meanwhile, the 30-day volatility jumped above 31% from the record low of 15%. 

Bitcoin options and futures are in demand

The price rally is driven by a combination of technical and fundamental factors. Thus, the average daily trading of Bitcoin options of Deribit hit $539 million, which is more than double the previous record high.  The Panama-based trading platform for cryptocurrency derivatives reported that over 47 contracts for bitcoin options traded in a single day on Monday. 

Bitcoin futures are also in demand. Bakkt reported that over 11,700 Bitcoin futures contracts had been traded on Tuesday, which is also the highest number on record.

BTC/USD: Technical picture

On the intraday charts, BTC/USD is supported by a combination of 50-hour SMA and the lower line of the 1-hour Bollinger Band at $10,800. Once it is out of the way, the sell-off is likely to gain traction with the next focus on $10,500 that served as a strong resistance area during the previous recovery attempts. If it is broken 100-hour SMA at $10,300 will come into focus.

On the upside,  a sustainable move above $11,000 is needed for the upside to gain traction. The next resistance is created by the upper line of the 1-hour Bollinger Band at $11,140 and the recent high of $11,414.

BTC/USD 1-hour chart

Share: Feed news

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD holds above 0.7000 after Powell delivered Premium

EUR/USD holds above 0.7000 after Powell delivered

Fed Chair Powell temporarily boosted optimism pushing EUR/USD to 1.0766 saying that stronger-than-expected data will see the Fed raising rates accordingly. US Dollar bulls fight back and the pair trades below 1.0745.

EUR/USD News

GBP/USD trades around 1.2000 in Powell’s aftermath

GBP/USD trades around 1.2000 in Powell’s aftermath

GBP/USD flirted with 1.2100 within FOMC Chairman Jerome Powell's speech, but quickly trimmed gains and hovers around the 1.2000 figure. The US Federal Reserve further cooled expectations of a rate cut by year-end.

GBP/USD News

Gold: Holding above $1,860, but upside still seen limited Premium

Gold: Holding above $1,860, but upside still seen limited

Spot gold saw little action throughout the first half of the day, consolidating its latest losses just above the $1,860.00 threshold. The US Dollar mainly advanced against its European rivals, as certain caution reigned ahead of a speech from US Federal Reserve (Fed) Chairman Jerome Powell, resulting in XAU/USD holding within familiar levels. 

Gold News

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple: When all signs point north

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple: When all signs point north

The Crypto market continues to show bullish signals. Still, a trade-per-trade stance is being implemented as markets are highly elevated since January's 40% rally.

Read more

US trade deficit widened to close a volatile year for trade

US trade deficit widened to close a volatile year for trade

The U.S. trade deficit widened in December to finish what was a volatile year for international trade flows. While 2022 marked the largest deficit on record, the U.S. trade balance narrowed over the course of the year. Trade flows will remain under pressure in 2023 amid slow global growth and a normalization in U.S. demand.

Read more

Forex MAJORS

Cryptocurrencies

Signatures