Market Wrap: Bitcoin Tests $19.5K; Ether Options Interest in Doldrums

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Market Wrap: Bitcoin Tests $19.5K; Ether Options Interest in Doldrums

Bitcoin’s price continues to climb for the fourth consecutive day, going as high as $19,555 as of press time and breaking out of a $19,200-$19,400 range for the second time in the past 24 hours.

However, some resistance in the form of sell orders around the $20,000 price level may limit the amount of upside in December.

“It is an interesting picture: From one side it’s clear ‘buy the dip’ mood, from the other side we have $20,000 as a big resistance,” said Misha Alefirenko, co-founder of VelvetFormula, a digital asset liquidity provider. “It feels very bullish on charts.”

While bitcoin seems to be hitting bull mode after dipping below $17,800 this past Friday, Jason Lau, chief operating officer of San Francisco-based cryptocurrency exchange OKCoin, expects some selling to cap a fervent 2020 for the crypto markets. 

“The run-up in BTC since March has been extraordinary, so investors and portfolio managers may be seeking to take profits and offload their BTC before end of year for tax purposes,” said Lau.

Lau noted concern the upcoming distribution of long-awaited bitcoin from defunct exchange Mt. Gox might introduce some sell-side dynamics at some point, but he nonetheless remains positive. “Mt. Gox’s upcoming 140,000 BTC distribution is an overhang on the horizon,” he said, “but the fundamentals are still strong as ever.”

In the bitcoin futures market, open interest cracked $7.4 billion once again, the first time since Nov. 24 and a sign sophisticated investors are increasingly hedging positions by using crypto derivatives.


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