As you can see, we were not mistaken with the sideways 44,807.24 - 48,178.13 for bitcoin, located between two red dotted lines. Its support persisted and closed yesterday with a sharp price increase, today reaching the upper limit of the corridor.
Meanwhile, the expiration date of bitcoin options is approaching. There are now 3,700 ultra-bullish call options contracts above $ 50,000.
The adjusted open interest volume for neutral and bullish call options now stands at $190 million. After the expiration of contracts for $48,000, the volume will be reduced to $138 million.
The 73% of total protective put options are below the $44,000 level. However, upon expiration above this mark, the volume of open interest in bitcoin options will decrease to $65 million.
If expiration takes place at $46,000, open interest can grow to $105 million. This is a good enough reason for buyers to push the price up so sharply today.
Meanwhile, Glassnode notes that bitcoin outflow dominates now: investors are withdrawing coins. Over the past year, the market has gone through several phases of currency flow dominance, with the last outflow dominance seen at the end of 2020.
What to expect after today's growth? Two scenarios are technically possible here. The first is a sideways reversal 44,807.24 - 48,178.13 downward, if the two-day growth was really dictated by the expiration of options. It is worth watching the level of 48,178.13, as it is a strong mirror horizontal.
The second scenario is a breakdown of the level of 48,178.13 and consolidation above. If confirmed as resistance, the main cryptocurrency could continue to rally towards the psychological mark of $50,000 per coin and the technical area near $52,000.
And finally, some good news. Wells Fargo bank is in the top of the headlines today, which has registered a private bitcoin fund to provide crypto services to rich clients.
The giant's partners will be FS Investments and New York Digital Investment Group (NYDIG).
Perhaps this news, in addition to the expiration of options, became one of the bullish factors in the rapid and rather technical growth of the main cryptocurrency.
Earlier this year, a report was released titled "The investment rationale for cryptocurrencies". At the time, the bank's investment arm announced that the new fund would be available to "qualified investors." The document stated:
"WFII believes that cryptocurrencies have gained stability and viability as assets, but the risks lead us to favor investment exposure only for qualified investors, and even then through professionally managed funds."
Interest in cryptocurrency among banks is growing, indicating that bitcoin and other large digital assets are more and more firmly rooted in the minds of institutions as assets in which it is possible and even worth investing.
