Bitcoin options traders are preparing for BTC to reach as much as $36,000 by the end of 2020.
- The most new open positions were seen in the $36,000 December call, with 752 contracts.
- The number of open positions in the $32,000 call rose by 462 contracts.
- Relatively small additions were observed in the $28,000 December expiry call, as well as the $9,750 and $9,000 puts expiring this month.
- Buy positions in the out-of-the-money $36,000 and $32,000 calls were executed during Sunday’s European trading hours when the liquidity was low (wider bid-offer spread).
- As such, these traders paid significantly more in costs than they would have incurred on a weekday.
- The aggressive weekend trading is a little perplexing, given the options market sees a very low probability of prices reaching a new record high above $20,000 by the end of December.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 11,646.22.
The projected lower bound is: 9,829.36.
The projected closing price is: 10,737.79.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 74.2265. This is not an overbought or oversold reading. The last signal was a buy 6 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 48.76. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 39 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 68. This is not a topping or bottoming area. The last signal was a buy 6 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 1 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 44.850 at 10,740.830. Volume was 61% below average (consolidating) and Bollinger Bands were 65% wider than normal.
Open High Low Close Volume 10,690.910 10,842.000 10,624.050 10,740.830 275,685
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 10,343.71 11,269.30 9,135.32 Volatility: 33 51 83 Volume: 931,578 846,890 583,147
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FOREX BTC= is currently 17.6% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of BTC= at a relatively equal pace (neutral).
Our trend forecasting oscillators are currently bearish on BTC= and have had this outlook for the last 21 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.