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Bitcoin price confronts a crucial barrier, the upper boundary of the ascending parallel channel at $53,000.
BTC could extend gains 4% to $55,000 as multiple technical indicators flash bullish.
The bullish thesis would be invalidated if the price breaks and closes below $45,554 mean threshold.
Bitcoin (BTC) price has inspired remarkable optimism among the bulls, which is seen in the ambitious Bitcoin options seen in a new report. Meanwhile, a renowned BTC adversary seems to have turned coat to sign a certificate in honor of the pseudonymous Satoshi Nakamoto.
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Derivative exchanges have reported a spike in call options to buy Bitcoin between the price range of $60,000 and $80,000, their strike price range, according to QCP Capital’s Options Vol-cast report released on Thursday.
Based on the report, BTC call option buying has soared, with close to $10 million spent on premiums for $60K and $80K strikes this week alone, expiring from April to December.
For the layperson, traders buy a call option on an asset when they think its price is going to increase beyond the set price that they have chosen on or before the date of expiry.
If Bitcoin price hits anywhere above the strike prices in the range of $60K to $80K, respective traders would execute their contract before expiry (April to December) and book profits on their speculation.
However, if Bitcoin price fails to trade above their respective strike prices, traders would allow their options to expire worthless. In such a case, they would only lose the premium that they had paid to enter the trade.
Citing gratitude from the American populace, Massachusetts Senator Elizabeth Warren signed a certificate in honor of BTC creator Satoshi Nakamoto with a ceremonial flag flying.
The Senator honors BTC’s anonymous creator for the Bitcoin network’s 15th anniversary since launch, hailing Nakamoto for creating a “truly inclusive financial system.”
A commemorative flag was flown over the United States Capitol as part of the Capitol Flag Program of 1937.
The move is shocking, considering her history as a BTC adversary, with several instances where she called out the asset for enabling crime, terrorists and climate change perpetrators.
The certificate cites Bitcoin’s innate ability to provide “new economic freedoms to populations previously ignored by both private and public institutions.”
Bitcoin price is testing a crucial roadblock, the upper boundary of the ascending parallel channel at $53,000. The Relative Strength Index (RSI), a momentum quantifier, shows BTC is massively overbought with a reading of 81.
Nevertheless, its inclination to the north suggests that BTC is not yet ripe for selling. This coupled with the bullish outlook of the Moving Average Convergence Divergence (MACD) and the Awesome Oscillator (AO), suggests more upside potential.
Increased buying pressure could see Bitcoin price overcome this roadblock, potentially extending the gains 4% to the $55,000 level.
In a highly bullish case, Bitcoin price could make it to $60,000, nearly 15% above current levels.
BTC/USDT 1-day chart
On the flipside, if traders cash in on the overbought crypto, Bitcoin price could drop, potentially losing support due to the midline of the channel. The king of crypto could fall into the supply zone turned bullish breaker between $44,300 and $46,760. A slip and close below its midline at $45,554 would clear the drains for an extended fall.
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