Bitcoin Price Will Perform Another Rally in May after $4.2B Options Expiry?

Bitcoin as begun the monthly options expiry week on a positive note, rising from $48,000 to over $54,000. What's interesting about this particular options expiry is that the current max pain price for the expiry is $54,000, which is very close to the current trading price. 

 

Call and put sellers, typically institutions with ample capital supply, often manipulate and pin the price of the underlying toward the max pain point while heading into the expiry.

 

In other words, buyers of call and put options expiring on April 30 will suffer maximum loss if bitcoin settles at $54,000 on Friday. Meanwhile, sellers would make the highest profit. Therefore, option writers may try and keep prices around $54,000.

 

de.png


Monthly options expiry is a significant event for the Bitcoin price trend. Even though Bitcoin hit its all-time high of $64,900 on April 21, it saw a 27% drop almost immediately as its price fell as low as the $46,000 range. 

  

Bitcoin has averaged a 30% return in April over the past four years. But the market leader returned much more in the first quarter of this year than in previous years. It's not bad for Bitcoin to take a pause in April after the previous parabolic run.

 

April has been no different in terms of continued institutional adoption of the asset. One way to gauge institutional moves is through outflows from crypto exchange Coinbase Pro. The exchange normally integrates its custody wallets with its over-the-counter desks, which institutions usually trade through to minimize the impact on the spot markets. The outflows are seen as a representation of institutional activity in the BTC market. 

 

cf.png


The $4.2 billion options expiry didn't lead to much of an economic impact for options holders, it is likely that BTC will skyrocket to $70,000 in May.

 

Bitcoin Price Analysis

On the daily chart, Bitcoin is trading above MA5 and MA10, but under the pressure of MA20 and MA30 resistance. Moreover, the MA30 and MA20 forms a golden fork, which indicates that a mid-term bullish trend. MACD and RSI also give bullish signals, Bitcoin is nurturing the uptrend towards $60,000.

 

Support: $53,000, $51,000, $48,000

Resistance: $56,000, $58,000, $60,000

bc.png

Demo

想進行練習嗎?到模擬交易使用我們的贈金

5000 USDT
聯繫我們
twitter Telegram

Technical support: [email protected]

風險提示 該公司為客戶提供的金融產品,包括差價合約(“CFD”)和其他復雜的金融產品。差價合約交易具有高風險性,因為槓桿可能會對您的資金狀況產生積極和消極的影響。差價合約交易並不適合所有投資者,因為可能導致投資資本的完全虧損。不要投資超過您能承受的範圍。在開始復雜的金融產品交易之前,請務必閱讀有關所有風險。

© 2019 Bex500. All rights reserved.

登入
谷歌驗證

忘記密碼? 找回谷歌验证

還沒有帳號?立即註冊
找回密碼
60秒後重新獲取
獲取
註冊帳戶
60秒後重新獲取
獲取
服務條款隱私政策
已有帳號?立即登入