The Bitcoin (BTC) price will „explode“ once it reaches USD 13,000, a trader believes because Bitcoin futures are traded at 6% above the spot price.
In an Aug. 18 tweet, derivatives trader @JSterz highlighted the „extreme“ spreads of Bitcoin futures as a sign that a strong, intense bullish move could come soon.
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Trader: „This thing’s gonna blow.“
Currently, Bitcoin futures contracts expiring in March 2021 are priced 6% higher than the BTC/USD spot price, about USD 12,280.
„It seems extreme to see the BTC-Mar21 trading 6% above the spot price,“ summarized @JSterz.
„We’ve been at this level about four times since 2017. If the BTC goes above 13,000+ this thing is going to explode.“
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Open interest in a basket of trading platforms reached new all-time highs on Monday, breaking an earlier mid-February record, before the March coronavirus-induced drop.
„Look at the changes in OI’s market share,“ said Ikigai fund manager Travis Kling, posting an overall graph on Twitter.
„We’ve been talking about The Herd… which has been coming for so long that it’s become a meme. But without a doubt, this is actually The Herd, it’s wildly bullish.“
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Bollinger’s eyes „imagine perfect“ BTC’s upward climb
Institutional investment in Bitcoin remains a major topic of conversation among supporters this month, following a dramatic purchase of the multi-million dollar MicroStrategy in late July.
Asset manager Grayscale has seen a record investment in its various crypt funds, as Ethereum Code outperforms gold as a hedge fund.
On Monday, a sudden rise above USD 12,000 was assumed to be a warning sign, but the higher levels have remained since then.
For John Bollinger, creator of the Bollinger Bands Volatility Indicator, there was now every reason to believe in the strength of the rise.