Transactions in the crypto market have swelled over the past 24 hours. Cumulative trading volume topped $93 billion, making it the highest this week. By data of CMC, Bitcoin was one of the largest contributors as it generated a total volume of $35.2 billion in the past day. The price rally, for its part, saw Bitcoin surge 9% on its price charts to $23,000.
A few hours ago, the NUPL metric crossed 0. Previously it stood at -0.001, but at press time it reflected a value of +0.002. This indicator basically looks at the difference between unrealized profit and unrealized loss to determine whether the network, as a whole, is in a profit or loss state. Values below zero indicate that the network is in a net loss state and vice versa. So, the current bounce is basically a good sign, as it signals that the network is in a net profit position.
Now, even though the recent tilt noted is small, it could contribute to the extension of BTC’s short-term green frenzy.
The next options expiration
Besides the aforementioned fundamental positive, another important factor that could play a crucial role in determining Bitcoin’s price is tomorrow’s monthly options expiry. This time, the stars are kind of aligned in favor of BTC, as most traders are bullish on BTC at $22,000 and above.
According to data from Skew, the July 29 expiry involves 89.8k BTC. Attached snapshot [right] shows that market players remain quite dispersed in relation to their bets. The number of calls and sales contracts seems to be more or less equal.
However, when the OI chart by strike price is displayed [left], it becomes pretty clear that purchase contracts dominate proceedings in price ranges from $22,000 and beyond. However, traders are strongly bearish below $22,000.
Does Bitcoin have a “good” chance to go up or down?
So, as long as Bitcoin price continues to hover around its current range, there is not much to worry about. More so, because at the time of expiration, call traders will be required to exercise their option to buy their respective coins. So, should such a scenario materialize, Bitcoin’s rally would likely be prolonged.
On the other hand, if its price ends up deflating over the next few sessions and hovering around $21,000 or lower on expiry, the derailment could continue.
Here it is interesting to note that in a range between $21.7k and $22.3k, BTC has quite strong support. And as analyst Ali Martinez pointed out, as long as this demand zone holds, Bitcoin has a “good chance” to rise to $27,000. Halfway through, however, it would be tested for around $23.8,000.
So, keeping the number of call bets placed in higher ranges and Bitcoin hovering around one of its most vital supports, it is likely that we may note some short-term respite over the next couple of months. days before the hype died down.