We expect that Bitcoin sellers to cover their positions. which could lead to higher prices in next week. Bitcoin retired on Friday after rising almost 10% earlier this week. The cryptocurrency was trading around $32,000 at press time and is up about 6% over the past week. Ether (ETH, +9.08%), the world’s second biggest cryptocurrency. It is holding above $2,180 and is up about 8% over the past week.
Rising momentum is getting better, which might keep crypto buyers active on the weekend. Some analysts anticipate a short-pressure. In order to push bitcoin (BTC, +6.61%) above the 50-day moving average around $34,000 given oversold conditions on the charts.
“For the first time in many weeks we are seeing bullish signs here and expect Bitcoin to head towards the upper end of the $30,000-$40,000 range,” wrote Pankaj Balani, the CEO of Delta Exchange.
“On the options front we have seen a good amount of covering between the $35,000-$40000 strikes for the weekly maturity,” Balani said. “For the July expiry there is still decent open interest in the $35,000 strike, which should act as a ceiling for BTC for this month.”
Generally, risk sentiment is improving in traditional and crypto markets as concerns about the harder monetary stimulus wane. On Thursday, the European Central Bank (ECB) promised to maintain interest rates lower for longer. And also regulated its policy state to let for a slight overshoot of the 2% inflation target.
The ECB declaration along with a broad reduction in global government bond produces contributed to higher stock prices over the past week. In addition the reach for yield, improving sentiment and positive comments from Tesla CEO Elon Musk on Wednesday maintained crypto bulls active.
Cryptocurrency new peak
Bitcoin options traders are pricing an 8% chance of the cryptocurrency jump to a new peak above $64,800 by Dec. 31. This data wa according to data source Skew.
Furthermore, six-month suggested volatility, or investors’ expectations for price roughness, decreased to a more than two-month low of 80% . It was having the peak at 122% on May 17. That implies investors await that the price consolidation to keep going for a while.
“If BTC retains the lower range of 30K, shorts will begin to squeeze as BTC moves to the middle point of the range, likely accelerating in the coming days/weeks,”. Sashimi Nakamoto talked about it on CryptoQuant.
The bitcoin funding rate is a little negative, which shows higher short interest than long interest, based on Nakamoto.
The funding rate scales the cost to fund long positions in the market for bitcoin ever lasting changes. In another word, a type of derivative in the cryptocurrency markets look like futures contracts in traditional markets.
Dropping digital asset investment
Weighed up with traditional asset classes, digital asset markets still own a “long way to go before more risk-averse investors are fully at ease,”. Based on a report by CryptoCompare.
NFT effect on Ether
As NFTs obtain reputation regardless of an overall bearish sentiment in the crypto market. Some NFT critics inside the market took to Twitter blaming the non-crypto natives who withdrew their Ether at once after NFT sales for the uninspired price movement of the second-largest cryptocurrency by market capitalization.
However, based on multiple analysts and market contributors, the effect of NFT sales, stays a nonfactor on Ether’s prices. Instead, the complaint showcases many traders and investors’ frustrations in a slow market.
The guess“is more like a reflection of the current market sentiment,”. Daniel Lv, co-founder of China-based blockchain Nervos Network, told Muyao Shen through a representative.
The blame, though, isn’t all irrational since growth in the NFT market has not quite slowed down partly because of the large number of confirmations, got from non-crypto celebrities.