- Bitcoin continues to break over major hurdle points
- Bitcoin is drawing closer to the major $10k hurdle point
- CME BTC contracts expiry looms
Bitcoin News Today – Since it returned into the positive zone, Bitcoin has been surging higher gradually. Over the past day, Bitcoin has broken over several major hurdle points. After breaking over the $9k mark, it broke over the $9,300 and $9,500 hurdle points a few hours ago.
The digital currency even surged towards the $9,600 before it corrected a bit. The strong rally of Bitcoin towards the $9,600 mark increases the chances of the digital currency breaking over major $10,000 resistance. Nevertheless, the CME Bitcoin contracts expiry tomorrow is something to look out for.
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin Eyes the $10,000 Resistance Once More
The price of the world’s most dominant digital currency continues to draw close to $10k. This is after the digital currency surged by more than 5 percent over the past day, bring BTC to USD price to a high of $9,600. The recent rally has pushed the price of the digital currency back to the $9,600 to $9,800 region.
That is the level that the digital currency traded from 13th to 20th of May. This also increases the chances of the digital currency returning to the $10k zone. According to data from Skew and Cointelegraph, an enormous number of Bitcoin futures contracts will be expiring tomorrow. This also includes the $184M in CME Bitcoin Futures. A tweet from Skew, a few days ago, states:
“23k Bitcoin equivalent futures and 10k Bitcoin options are set to expire this Friday on CME. Approx. 50% of open interest for each product. Watch the rolls!”
Can Bitcoin Bulls Sustain These Gains as CME BTC Futures Expiry Draws Close?
The price of Bitcoin usually experiences increased volatility whenever CME BTC futures expiry is at hand, according to Arcane Research and Cointelegraph. After analyzing the price behavior of the digital currency from January 2018 to August 2019, the research firm found out that the price of Bitcoin plunged by 75 percent of the time before futures expire.
This means that traders would have to monitor the price of the digital currency before and after the expiry, says Marcel Pechman. Traders need to observe the CME open interest for the May contract to have a better understanding of the potential impact of the forthcoming expiry. Pechman further added that:
“If we break $10k, this adds buying power for call options but I like to monitor contango more than funding rate in order to see how the curve of next futures contracts is priced vs spot. In my opinion, the bigger the futures premium, the more bullish big investors are.”