Over the past month, while market action has been relatively quiet, crypto traders have punched the buy button when bitcoin’s price drops below $9,000.
- Bitcoin (BTC) trading around $9,208 as of 20:00 UTC (4 p.m. ET), slipping 0.80% over the previous 24 hours.
- Bitcoin’s 24-hour range: $9,201-$9,379
- BTC above 10-day and 50-day moving average, a bullish signal for market technicians, although trading volumes on Tuesday are lower than Monday.
“Bitcoin managed to approach the level of $9,300, after which immediately rolled back to the $9,250 area,” said Constantine Kogan, partner at cryptocurrency fund of funds BitBull Capital. “The coin continues to trade in a narrow price range,” he said, adding that crypto markets are experiencing record low volatility.
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“Such low volatility is uncharacteristic of bitcoin,” said Vishal Shah, an options trader and founder of derivatives exchange Alpha5. “However, this sentiment has permeated through the trading community.”
Less volatility has translated into fewer options bets. Open interest has dropped since the June 26 expiration date and is now hovering at the $1.1 billion mark. That’s quite a bit off from where it was in June, when it hit a record $1.8 billion high, according to derivatives data aggregator Skew.
The lack of action is causing vigilant traders to change their strategies. For example, there appears to be sentiment that bitcoin at $9,000 is a good price point for traders to buy. “Every time the market has poked its nose below $9,000, buyers have stepped in,” said Rupert Douglas, head of institutional sales at London-based broker Koine.
Indeed, over the past month, when the world’s oldest cryptocurrency dipped below $9,000, traders scooped it up on spot markets like Coinbase.
Douglas says the narrow bitcoin price action might not last because most traders surely would like more volatility, which is what attracts many to crypto in the first place. “Bitcoin is coiled for a big move,” he told CoinDesk. “I still favor the upside. I think we will see bitcoin heading above $11,000 in short order when a move comes.”
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