Bitcoin bounced close to $11,600 before retreating a bit while ether options traders are less active than they were in September.
-
Bitcoin (BTC) trading around $11,552 as of 20:00 UTC (4 p.m. ET). Gaining 1.7% over the previous 24 hours.
-
Bitcoin’s 24-hour range: $11,186-$11,598
-
BTC is above its 10-day and 50-day moving averages, a bullish signal for market technicians.
After a flat weekend that saw the world’s oldest cryptocurrency stick to a tight $11,300-$11,400 range, bitcoin’s price jumped Monday as high as $11,598 before settling to $11,552 as of press time.
Read More: Bitcoin and Ether Rally After Grayscale’s ETH Trust Becomes SEC-Reporting
Related: Monero Leads Rally in Privacy Coins, Rising to Two-Year Highs
In its weekly investor note, quant trading firm QCP Capital put bitcoin’s technical support at $10,500, with any point above positive for the overall market due to payments firm Square buying $50 million in bitcoin. It has stayed above that level comfortably since Oct. 2.
”Last week Square’s purchase put a nice floor in BTC right at the key trendline and 10,500 level, with their average purchase price being $10,617 for 4,709 BTC,” the QCP note read. “Square’s purchase and effective lobbying of other corporate treasury desks through their white paper will give people confidence that a five-digit BTC price will be sustainable.”
On the macroeconomic front, global stock markets are anxiously awaiting further economic stimulus in the face of an increasing number of coronavirus cases, said Rupert Douglas, head of institutional sales for broker Koine. Equities traders want another round of stimulus as well as a weaker dollar, which supports gold, silver and bitcoin, too, he added.
Indeed, since Sept. 25, the U.S. Dollar Index, a measure of a basket of fiat currencies versus the greenback, has been flat, in the red 0.01% Monday at press time.
Related: Bitcoin and Ether Rally After Grayscale’s ETH Trust Becomes SEC-Reporting
“Macroeconomic news and markets have been mostly positive across the globe, with equities up 2%-3% last week,” said Jason Lau, chief operating officer for cryptocurrency exchange OKCoin. He also noted that funding rates have been mostly positive the past three days, indicating traders are mostly paying for margin to go long in the bitcoin market.
“Positive funding rates in the BTC futures markets and recent large corporate purchases, for example Square, have also increased short term bullish sentiment in line with traditional markets leading into year end,” Lau added.
Ether options open interest lower in October
Ether (ETH), the second-largest cryptocurrency by market capitalization, was up Monday trading around $387 and climbing 4% in 24 hours as of 20:00 UTC (4:00 p.m. ET).
Prices jumped nearly 4% several hours after digital currency asset manager Grayscale announced its Ethereum Trust has become a Securities and Exchange Commission (SEC)-reporting company. Grayscale is owned by…
Read more:Market Wrap: Bitcoin Bumps Close to $11.6K; Ether Options Open Interest Dips
