Bitcoin analysts expect more volatility toward the end of October

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Bitcoin price has sustained above $13,000 level in the last three days but experts expect more volatility in its price behavior toward the end of October.
Bitcoin closed Monday at $13,068 where it went as high as $13,244 and as low as $13,800. So far, the benchmark cryptocurrency has struggled to turn the $13,000 level as support. This was preceded by a solid move to breach past $12,000 on Oct. 21 boosted by news of PayPal‘s plan allowing its users to buy and sell bitcoin.
Experts and traders say it is possible for volatility to spike once again since Bitcoin options worth $750 million are set to expire this Friday, a day before Halloween in October, while open interest on CME futures is soaring, as it was reported.
In the past few months, nothing major has taken place to the spot market on the day of derivatives expiration. However, open interest in Bitcoin futures at the Chicago Mercantile Exchange (CME) has surged, eclipsing that of Binance futures and other major derivatives exchanges.
This is important because CME offers services to institutional investors. It has long been thought that institutional investors, with their money, can affect the momentum of the price of Bitcoin. The soaring CME futures market’s open interest is an indication that BTC demand from institutions has never been this high before, analysts claim.
A high open interest near the expiration of derivatives could trigger wild volatility.
Bitcoin is also set to have a historic monthly end this October as it is poised to close above $13,000 after almost three years. At the moment, the technical structure of Bitcoin is bullish because its 200-day average has remained intact. “As long as demand is present, it won’t break,” tweeted an analyst who goes by the name of BTC_JackSparrow.
While there is some evidence of sell-off from the side of the miners, it is being offset by new demand as more capital enters the cryptocurrency market.

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