• Approximately $1 billion Bitcoin options will expire today
• Ethereum network is still struggling with congestion
Bitcoin’s options market is on its way to a record $1 billion monthly expiry today.
Today option contracts worth over $1 billion are set to expire across major exchanges, according to data provided by the crypto derivatives research firm Skew. Option expiries can cause significant price movements via a process known as “pinning” in which option traders try to move the spot price to avoid sharp losses. The $10,000 may act as a strong resistance heading into expiry. If prices begin to rise, call sellers may take short positions in the spot markets in order to keep the cryptocurrency from scaling the $10,000 mark.
Bitcoin may witness violent price moves within the next few months if traders rollover short positions in June contracts to July and September expiry.
Bitcoin has been trading in range between $9,000 and $10,000 since the beginning of June. Recently bulls managed to break above last week’s highs at $9,600, however $9,800 level turned out to be to strong and the price pulled back towards $9000 level. Breaking below it may trigger a bigger downward move with a potential target of $8400 support level. Source: xStation5
Ethereum price failed to reach psychological resistance level at $250.00 and on Wednesday broke below the key ascending trendline. Should downbeat moods prevail, support at $215.00 may come into play. Source: xStation5The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
