Bitcoin rose by about $500 to once more retake $8,500 as the currency seemingly turns upwards.
That coincides with the launch of bitcoin options on Wall Street’s CME this Monday.
Zoom in is the new zoom out, but the weekly candles chart looks a bit interesting as there’s quite a few things going on there.
We obviously first have that $3,000 long sideways a year ago, with the more recent long sideways then in the past few weeks when circa $6,500 held.
That was followed by what some claim is a breakout in an upwards direction, with $8,500 potentially being some resistance and then $10,000.
You can never predict these things but instead of a fast movement it might be slow, slow time as bulls walk on their tip toes to not wake up the bears.
Options are one tool that makes that tip toes walking very, very quiet, but CME’s options are paper options, fake options.
Options are meant to exchange an asset whereby you secure the right to buy it after putting down a forfeitable deposit, but don’t have to buy it.
On CME, however, it is more contracts for difference (CfD) where no asset moves. The only thing that moves instead is the spot price on exchanges like Coinbase, but CME being CME, they base these options on CME futures which are in turn based on Coinbase’s price and the price on other spot exchanges.
Meaning these options might not quite have an effect as no asset is exchanging hands, with 125 paper bitcoin options exchanged on Monday, worth just a million dollars.
Bitcoin’s trading environment is however becoming quite sophisticated with numerous opportunities now for
gamblers traders both at an institutional level and at an individual level.
It is probable bitcoin settled options will also follow eventually, and who know maybe even an ETF perhaps at some point once bankers get enough bitcoin.
Miners however are probably bracing for getting less bitcoin in now four months, with the question of the year being whether 2020 is the new 2016.