Bitcoin Price Will ‘Explode’ Says Trader if BTC Breaches $13,000

Published at: Aug. 18, 2020

Bitcoin (BTC) will “explode” in price once it hits $13,000, one trader believes as Bitcoin futures trade at 6% above spot price.

In a tweet on Aug. 18, the derivatives trader JSterz highlighted “extreme” Bitcoin futures spreads as a sign that an intensely strong bullish advance may soon arrive.

Trader: “This thing is going to explode”

Currently, Bitcoin futures contracts expiring in March 2021 are priced 6% higher than the BTC/USD spot price at around $12,280.

“It seems extreme to see BTC-Mar21 trading 6% above spot,” JSterz summarized. 

“We have been at this level about four times since 2017. If #BTC breaches 13k+ this thing is going to explode.”

Bitcoin futures spreads since December 2017 launch. Source: Twitter

Open interest for a basket of trading platforms hit new all-time highs on Monday, beating a previous record from mid-February, before March’s coronavirus-induced crash.

“Note the changes in market share of OI,” Ikigai fund manager Travis Kling commented, uploading an overview chart to Twitter.

“We’ve been talking about The Herd… coming for so long its become a meme. But without a doubt, this is actually The Herd and its wildly bullish.”

Bitcoin futures aggregate open interest 1-year chart. Source: Skew

Bollinger eyes “picture perfect” BTC bull run

Institutional investment in Bitcoin remains a major topic of conversation among supporters this month, following a dramatic buy-in from multibillion-dollar MicroStrategy in late July.

Asset manager Grayscale has seen record investment in its various cryptocurrency funds, as Bitcoin outperforms gold as a fiat hedge.

On Monday, a sudden swing above $12,000 was assumed to be a red herring, but the higher levels have since held.

For John Bollinger, creator of the Bollinger Bands volatility indicator, there was now every reason to believe in the strength of the rally.

“I imagine that someone is complaining about the $BTCUSD rally. Not me, a picture perfect advance so far,” he tweeted at the time.

“Squeeze, confirmed break out, walk up the upper band, consol, support at middle band, mini-Squeeze, break to new highs. How much more could one ask for?!”

Tags
Bitcoin
Bitcoin Price
Markets
Bitcoin Futures
Related Posts
Is excessive bullish optimism behind Bitcoin’s drop below $60K?
Bitcoin (BTC) has a long history of forming local tops when events that are anticipated by the market occur. The recent Bitcoin exchange-traded fund (ETF) launch on Oct. 19 was no different and led to a 53% monthly rally to an all-time high at $67,000. Now that the price has briefly fallen below $60,000, investors are attempting to understand if the 10% correction was a healthy short-term profit taking or the end of the bull run. To determine this, traders need to analyze BTC's previous price activity to evaluate the possible similarities. The chart above depicts the day of a …
Etf / Oct. 24, 2021
Another $1 billion wipeout: Why is Bitcoin seeing extreme price moves?
Nearly $1 billion worth of Bitcoin (BTC) futures contracts were liquidated on Jan. 13, a day after the big shakeout. The continuous loop of liquidations is causing extreme volatility and large price swings in the cryptocurrency market. What are futures liquidations, and why are so many Bitcoin positions being liquidated? In the Bitcoin futures market, traders borrow additional capital to bet against or for Bitcoin. The technical term for this is leverage, and when traders use high leverage, the liquidation threshold gets tighter. For example, if a trader borrows 10 times the initial capital, a 10% price move to the …
Bitcoin / Jan. 13, 2021
Bitcoin now has a 7% chance of beating $20K highs in the next 2 months
Bitcoin (BTC) has a 7% probability of beating its $20,000 all-time highs by the end of this year, data shows. According to data from on-chain analytics resource Skew, as of Oct. 22, Bitcoin options were moving in favor of higher prices continuing in 2020. BTC odds “repricing quickly” At press time, the likelihood of BTC/USD being $20,000 or higher by Dec. 31, 2020 was 7%, with 11% for $18,000. By March 2021, more bets said that Bitcoin would have reclaimed $20,000 (14%), while the figure for June 2021 was 18%. On social media, Skew said that the probability data was …
Bitcoin / Oct. 22, 2020
'Looks Bad' — Bitcoin Futures Echo Days Before March Crash, Says Trader
Bitcoin (BTC) futures were worrying analysts on July 10 as volume data suggested serious weakness and the potential for a major pullback. Uploading a weekly chart of CME Group’s Bitcoin futures to Twitter, Cointelegraph Markets analyst filbfilb did not mince his words describing the current climate. Filbfilb: BTC futures “almost identical” to March “Looks bad,” he summarized, noting that a volume indicator had returned to an identical setup as the week before Bitcoin crashed to $3,600 in March. “Almost identical positioning as the big drop last time and a clear descending triangle full of wicks at resistance, trading below (point …
Bitcoin / July 10, 2020
Bitcoin bulls remain in charge even in the face of increasing regulatory FUD
Bitcoin (BTC) price broke above $25,000 on Feb. 21, accruing a 53% year-to-date gain at the time, it made sense to expect the rally to continue after U.S. retail sales data from the previous week vastly surpassed the market consensus. This fuelled investors' hope for a soft landing and the possible aversion of a recession in the U.S. economy. The apex of the U.S. Federal Reserve’s strategy success would be increasing interest rates and scaling back its $9 trillion balance sheet reduction without significatively damaging the economy. If that miracle happens, the outcome would benefit risk assets, including stocks, commodities …
Bitcoin / Feb. 27, 2023