Bitcoin Price Poised For Heavy Volatility, Bulls Winning?
14 Mars 2023 - 12:35PM
NEWSBTC
The Bitcoin price has risen by more than 20% amid the crisis in the
US banking system, which saw three banks shut down by the US
government and a massive crash in the prices of numerous banks.
After the furious price surge, BTC has stabilized between 24,000
and 24,8000 as of press time – but the calm might not last long.
With today’s release of the Consumer Price Index (CPI), the Bitcoin
price is traditionally in for a volatile day. And it’s not just the
CPI that points towards massive volatility in the market. Bitcoin
Faces A Volatile Day Maarten Regterschot, founder of diveonchain,
outlined in a tweet that the “perfect mix for strong volatility” is
currently evident with regards to BTC futures data. Open interest
is up $1.45 billion (23%). Funding rates are neutral / slightly
negative. Analyst James V. Straten adds that Bitcoin perp funding
rates have turned negative ahead of CPI, while options 25 delta
skew suggest a bearish sentiment with puts slightly at a premium.
#Bitcoin perp funding rate turns negative ahead of #CPI. While
options 25 Delta Skew suggests bearish sentiment with puts slightly
at a premium pic.twitter.com/4CzalHzgb3 — James V. Straten
(@jimmyvs24) March 14, 2023 Chinese journalist Collin Wu also
observed that in the last 24 hours, the notional value of Bitcoin
options trading volume was about $2.5 billion , the second highest
in history. It is also worth noting that call options with
expiration dates on March 31 and June 30 are the largest. Related
Reading: Bitcoin Price Rally Loses Steam But This Support Might
Spark Another Surge The current Deribit Bitcoin option position has
reached 336,000, with a notional value of about $8.2 billion, which
is also a record high. Remarkably, yesterday’s rally was driven by
the spot market. Analyst “Skew” writes that there was a large spot
volume from Asian exchanges during the US trading hours, which was
somewhat unusual. As always, however, it was Coinbase and Binance
that paved the way for the current market trend. Will Bitcoin
Continue Its Rally? It is also worth noting that Changpeng Zhao has
yet to complete the announced conversion of the Binance Recovery
Fund from BUSD to Bitcoin, Ethereum, and BNB. Both “Skew” and
renowned analyst on Twitter @tedtalksmacro have yet to observe any
movement of Binance funds. “As far as I’m aware that $1B BUSD
hasn’t been used yet by CZ. This is more capital rotation into BTC;
flight to safety,” Skew noted, while Ted added, “Yep, BNB yet to
move. Post CPI perhaps??” Related Reading: Bank Stocks Crash As
Bitcoin Soars 17% Above $24,000 A look at the 4-hour chart of BTC
reveals that the market must next the previous high of $25,200. If
the price moves smoothly to this area and breaks through, this
could be the start of a bigger rally. Everything will likely be
determined by today’s CPI release at 8:30am EST. US inflation
year-over-year (YoY) is forecasted at 6.0%, last was 6.4%. The
forecast for core inflation YoY is 5.5%, last was 5.6%. Everything
below these numbers is likely to refuel the rally, making a
breakout above $25,200 a possibility. At press time, the BTC price
looked strong, trading at $25,600. Featured image from Tumisu /
Pixabay, chart from TradingView.com
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