- Summary:
- Bitcoin was higher on Monday as the cryptocurrency seeks to mount another rally and the coin looks for another test of the $12k level.
Bitcoin was higher on Monday as the world’s largest cryptocurrency seeks to mount another rally. Prices rose for a third-straight day as the coin looks for another test of the $12k level, which capped gains on September 1st.
Futures trading data from the Commitment of Traders report released by the CFTC showed institutions had added to their holdings in BTC with open interest in Bitcoin futures at a record high. The figures highlight Bitcoin’s increasing importance as a financial asset.
Further data is showing that BTC options implied volatility is at lows not seen since the March volatility. Low expectations can mean a sharp move is ahead to the long or short side. This has more importance as futures interest is building. A surprise move, such as a break above $12k, could catch investors off guard and lead to the liquidation of positions.
Bitcoin has managed to shrug off the recent drama at crypto exchange OKEx, which saw the company unable to contact one of its key holders after they were asked to assist authorities with an investigation. This is on the heels of indictments for the owners of Bitmex. The move probably benefits BTC as it would see the coin used as a safe haven, rather than putting money to risk in other exchanges or leveraged trading.
Bitcoin Technical Outlook
Bitcoin rallied through a downtrend resistance line and is now finding support for a push higher. The $12,000 level is key resistance after providing a high on September 1st. A move above this level will aim to test the $14,000 price. A stop loss could be placed around $11,200 for long positions.
Bitcoin Daily Chart
