Market Wrap: Bitcoin Jumps To 11.8K As Ether Option Traders Turn Bearish

Bitcoin was up on Friday while ether options traders are mostly bearish.

“Crypto has had a good run for about three straight weeks since the end of July,” said David Lifchitz, chief investment officer of quantitative trading firm ExoAlpha. “There is a current resistance level of $ 12,500 for Bitcoin, which looks pretty normal as the markets, even crypto, cannot rise in a straight line day after day.”

In fact, Bitcoin hit a high of $ 12,130 last month before falling. This indicated, according to Lifchitz, that a reduction is likely before further highs are hit in 2020. “A slight pullback might even be in sight in the next few weeks, but without a particular bearish event it shouldn’t be a concern and the next big step from here should be rising,” he added.

The Bitcoin options market seems to agree with Lifchitz. Options with a maturity on August 20 show that traders give Bitcoin a 75% chance of over $ 11,000, while it only has a 21% chance of hitting $ 13,000 by next Thursday, according to data aggregator Skew.

Merchants can currently be temporarily distracted by more shiny objects. Alessandro Andreotti, an over-the-counter cryptocurrency trader, says decentralized finance, or DeFi, is putting Bitcoin in the spotlight – but that won’t last. “Where I see opportunities right now are DeFi tokens that are doing incredibly well,” he told CoinDesk. “However, I have a feeling that the cops will be coming back for Bitcoin soon.”

Ether (ETH), the second largest cryptocurrency by market capitalization, rose $ 442 on Friday and rose 12.1% in 24 hours at 8:00 p.m. UTC (4:00 p.m. ET).

The ether options market has more open interest than ever before, according to Skew, at $ 463 million on the Deribit and OKex platforms. But that’s not necessarily bullish for Ether. The trader sentiment seems to view the valuation of Ether as unsustainable. An overwhelming number of option bets are available on Ether under $ 410.

Chris Thomas, Head of Digital Assets at Swissquote Bank, said some traders are likely concerned that Ethereum’s current DeFi madness cannot continue for the rest of 2020. That contributes to the downward trend. “Perhaps some traders feel that Ethereum has come too far this year,” he said. “With high gas charges, will this create a problem for the DeFi ecosystem in the coming weeks?”

Digital assets on CoinDesk 20 are mostly on Green Friday. Notable Winners as of 8:00 PM UTC (4:00 PM ET):

Notable Losers as of 8:00 PM UTC (4:00 PM ET):

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