The price of bitcoin has surged more than 20% amid a crisis in the US banking system that saw three banks shut down by the US government and many more that saw their prices plummet. After a massive price surge, BTC has stabilized between 24,000 and 24,8000 as of press time – but the calm may not last long.
With today’s release of the Consumer Price Index (CPI), the price of bitcoin is in for a traditionally volatile day. And it is not just the CPI that points to high volatility in the market.
Bitcoin Faces a Volatile Day
Maarten Regterschot, founder of Divechain, underlined in a tweet that “the right mix for strong volatility” is currently evident with respect to BTC futures data. Open interest increased by $1.45 billion (23%). Funding rates are neutral / slightly negative.
Analyst James V. Stratton says bitcoin purp funding rates have turned negative ahead of the CPI, while the option’s 25 delta skew suggests a bearish sentiment, putting a slight premium on it.
#bitcoin Perp funding rate further turns negative #cpi,
While options 25 delta skew suggests bearish sentiment with puts at a slight premium pic.twitter.com/4CzalHzgb3— James V. Streets (@jimmyvs24) March 14, 2023
Chinese journalist Colin Wu also saw That in the past 24 hours, the notional value of bitcoin options trading volume was approximately $2.5 billion, the second highest in history. It is also worth noting that the call options with expiration dates on March 31 and June 30 are the largest.
Existing Deribit bitcoin options positions have reached 336,000, with an estimated value of approximately $8.2 billion, also an all-time high.
Notably, yesterday’s rally was driven by the spot market. analyzer “skew” writes There was a large amount of spot volume from Asian exchanges during US trading hours, which was somewhat unusual. However, as always, Coinbase and Binance lead the way for the current market trend.
Will Bitcoin Continue Its Rally?
It is also worth noting that Changpeng Zhao has not yet completed the announced conversion of Binance Recovery Fund from BSD to Bitcoin, Ethereum and BNB. Both “slant” and the well-known analyst on Twitter @tedtalksmacro have not observed any movement of Binance funds so far.
“$1B BUSD not yet used by CZ as far as I know. This is more capital rotation in BTC; flight to safety,” Slant notedwhile Ted said, “Yeah, BNB hasn’t moved yet. Post CPI maybe??
A look at the 4-hours chart of BTC shows that the market needs to hold on to the previous high at $25,200. If the price moves smoothly and breaks this area, it could be the start of a bigger rally.
Everything will likely be determined by today’s CPI release at 8:30 AM EST. US inflation year-on-year (YoY) is estimated at 6.0%, from 6.4% last time. The forecast for core inflation is 5.5% YoY, the previous was 5.6%. Anything below these numbers is likely to resume the rally, with a possible breakout above $25,200.
At press time, BTC price was looking strong, trading at $25,600.
Credit : www.newsbtc.com