Bitcoin Prices Go Up As Demand For Put Drops

Bitcoin Price Dances Close To $9400 As Demand For Put Falls

The news that Bitcoin (BTC) price is currently trading at $9,400 is music to the ears of traders, owing to the fact that just 24 hours ago, the price was in the region of $8,900.

Although Bitcoin price is moving in an upward trajectory thanks to the fact that traders are purchasing a few put options.

The $9,400 trading price represents a 2% gain on the day. On a weekly basis, the leading cryptocurrency now has more than 8% gains.

Overall, the Bitcoin’s recent surge is quickly followed by a drop in the need for put options. The advent of such derivative contracts means holders have the right to sell specific assets at an already agreed price on or before the specified rate. Mind you, under such derivative contracts, the holder has zero obligation to sell. On the other hand, a call option provides holders with the right to buy.

Bitcoin $10,00

Image is taken from Skew

According to data from Skew, the one-month put-call Skew is down by 6.6% from a month high of 22%. The one-month put-call helps to measure the price of puts in relation to calls.

The metric dropped by 10% from 15% to 5% on Wednesday, as prices hovered around the $9,000 mark. On the technical charts, this shows a bullish breakout. Simply put, the increase in prices has led to a subsequent decrease in demand for put options.

“The drop in skew can be attributed to a higher risk thanks to the May halving, thus leading to an increased skew,” said Luuk Strijjers, COO at cryptocurrency derivative exchange Deribit. “As things stand now, the market is expecting things to normalize, thus reducing the demand for puts.”

Following the halving, put options attracted a higher demand, thus bringing the one-month Skew higher from 12% to 12%. This was in anticipation of the price pullback experienced by the cryptocurrency in the wake of the halving in 2016.

A 9% correction was observed last week, with prices normalizing at $8,600. Bitcoin held on to levels below $8,700 several times before climbing above $9,000.

The Necessary Dip Demand

Bitcoin $10,00

Image is taken from Glassnode

As the price valuation of Bitcoin gradually dropped from $10,000 to $8,630, the number of addresses holding a minimum of 100 BTC rose. This showed that the big players in the industry would always seize any opportunity to accumulate.

The price decline saw the number of holding addresses rise from 16,010 to 16,089. Thus, proving investors believe in the long-term promises of the cryptocurrency. In addition, the number of addresses holding between 0.01BTC and 0.1 BTC reached a record high during the price dip.

Bitcoin $10,00

Image is taken from TraderView

4-Hour and Daily Charts

The sharp move above the $9,310, has made the bearish lower highs pattern on the four-hour chart invalid. Mind you, the positive outlook by Wednesday’s falling wedge breakout has been reinforced.

All signs indicate that Bitcoin could rise towards the resistance at $9,875, this will put the cryptocurrency way ahead of the low of $3,867 seen in March.


Bitcoin Autobot Latest Reviews

For More Bitcoin Platform review check out our platform section.

If you are drawn in Bitcoin Trading and Autobots, you are more than welcome to take a look at our latest review:

See our latest Bitcoin Autobot Trading Reviews.

Crypto Trading Platforms
5.0 rating
Stars Casino: Get $100 bonus cash + 200 bonus spins
4.0 rating
Ocean Casino: 200% match bonus up to $500 + 20 bonus spins
4.5 rating
1 Free Spin credited for every $1 deposit. Up to $100 + 100 Spins
4.3 rating
Monte Casino: Get 10 no deposit spins + $100 Bonus
3.8 rating
Claim a 100% deposit bonus up to $250 + free spins
cryptonbitcoin.com
DISCLAIMER High Risk Investment Trading cryptocurrencies carries a high level of risk, and may not be suitable for all investors. Before deciding to trade cryptocurrency you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with cryptocurrency trading, and seek advice from an independent financial advisor. ICO's, IEO's, STO's and any other form of offering will not guarantee a return on your investment. Since Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary, and does not constitute investment advice. cryptonbitcoinwill not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. All opinions expressed on this site are owned by the respective writer and should never be considered as advice in any form. Cryptonbitcoin makes no representation or warranties as to the accuracy and or timelines of the information contained herein. A qualified professional should be consulted before making any financial decisions.