As a seasoned crypto investor with a few years of experience under my belt, I’ve learned to keep an eye on key indicators that can impact the market significantly. The recent rally in Bitcoin’s price above $71,500 is a welcome sign after sentiment improved due to cooling inflation and bullish technical chart patterns. However, I remain cautious as we approach major inflection points such as the $2.2 billion Bitcoin and Ethereum options expiry and US nonfarm payrolls and unemployment rate data.
As a crypto investor, I’ve witnessed an impressive surge in Bitcoin‘s price, pushing it beyond the $71,500 mark. The upward trend can be attributed to several factors: firstly, inflation cooling down, and secondly, bullish technical patterns that have emerged on the chart. With Bitcoin’s eyes set on breaking the $72,000 resistance level, around $1.5 billion worth of shorts stand to face liquidation. If this happens, we could potentially reach a new all-time high of $75,000.
Traders believe Bitcoin and Ethereum are at a significant turning point based on decreased trading activity prior to the upcoming $2.2 billion options expiry for these cryptocurrencies, as well as the release of US nonfarm payrolls and unemployment rate figures today.
$2.2 Billion in Bitcoin and Ethereum Options Expiry
As a crypto investor, I’ve noticed that the market has maintained its tranquility following the recent expiration of Bitcoin and Ethereum options worth over $2.2 billion. Some experts predict a potential sell-off, while others are optimistic about the future outlook for weeks to come. Regardless, it’s crucial for us to keep a close eye on market trends and adjust our investment strategies accordingly.
Approximately 17,493 Bitcoin options with a total notional value of about $1.24 billion are due to expire. The put-call ratio stands at 0.69, suggesting that put options (betting on a decrease in price) have been more popular than call options (betting on an increase). The maximum price for these options to reach and cause no further loss is $70,000. Bitcoin traders may find it advantageous to liquidate their positions as selling pressure persists. Implied volatility (IV), which reflects the market’s expectation of future price swings, has decreased by 50% for all major terms. This decrease in IV could potentially pull down Bitcoin prices.
As a market analyst, I’m observing that approximately 260,000 Ethereum (ETH) options with a notional value of around $1 billion are approaching their expiration date. The put-call ratio stands at 0.65. This signifies that for every two call options, there is one put option. The max pain point is currently set at $3,650, which is under the current Ethereum price of $3,813. This observation suggests that traders still have potential to liquidate their positions and decrease the price further. Monitoring trading volumes will provide additional insight into ETH’s future price trends.
Nonfarm Payrolls and Unemployment Rate
Today, the United States Bureau of Labor Statistics will unveil the latest nonfarm payrolls and unemployment figures. In comparison to the 175,000 new jobs created in April, the economy is projected to have added approximately 185,000 jobs in May 2024.
The unemployment rate is projected to stay constant at 3.9%, maintaining its position at a two-year peak. Moreover, wages are anticipated to have increased by 0.3% compared to the previous month, representing a slight enhancement from the 0.2% growth in April. However, the annual wage rise is predicted to remain the same at 3.9%.
Despite the softening labor market, it is anticipated that employment figures will show significant strength in the upcoming release. A rise in the unemployment rate beyond 3.9% may actually stimulate a favorable response from the market.
Bitcoin Price to Rally to $83,000
The price of Bitcoin has been holding steady around $71,000 for the past two days, with little movement up or down. Traders are on edge, waiting for upcoming economic data that could potentially influence the market. Currently, Bitcoin is priced at $71,047. Over the last 24 hours, the lowest and highest prices were recorded at $70,119 and $71,625 respectively. The low trading volume suggests a decrease in trader activity and interest.
Based on findings from 10x Research, the head and shoulders chart formation suggests that Bitcoin’s price could reach a peak of $83,000 in the near future. It’s anticipated that this resistance level will be breached within the upcoming timeframe. The most likely moments for this to occur are either on Friday, June 7, or the following Wednesday, June 12.
As a crypto investor, I’ve noticed that the open interest for Bitcoin futures has been gradually decreasing prior to the closure of the CME Bitcoin futures market today. The current total open interest stands at approximately $38.04 billion.
Read More
- SOL PREDICTION. SOL cryptocurrency
- USD ZAR PREDICTION
- AVAX PREDICTION. AVAX cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- EUR KRW PREDICTION
- USD PHP PREDICTION
- BTC PREDICTION. BTC cryptocurrency
- PHB PREDICTION. PHB cryptocurrency
- BEN PREDICTION. BEN cryptocurrency
- TAO PREDICTION. TAO cryptocurrency
2024-06-07 11:48