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The week has not been great for cryptocurrencies, with Bitcoin BTC/USD losing 2.8% and Ethereum ETH/USD shedding 2.06% in last five days.
What Happened: Major coins traded in the red on Wednesday following rumors that the Securities and Exchange Commission would be getting “rid” of cryptocurrency staking in the U.S for retail customers.
See Also: How To Buy Bitcoin (BTC)
Bitcoin: As the week approaches to a close, professional traders seem to be betting that Bitcoin is unlikely to breach and stay above the $23,400-level by Friday.
Options data indicates maximum open interest on the Call side is concentrated in the range of $23,000-23,500 mark.
This shows that professional traders are expecting Bitcoin to stay at or below these levels on Friday. This is because unlike retail traders, professional market participants are known to prefer writing (shorting) options and collecting premiums rather than buying them. The probability of making profits too is higher while writing options.
Meanwhile, on the downside, the $22,500-mark seems to be acting as a near-term support. If the cryptocurrency breaches this level on the downside, the next support comes between $21,500 and $22,000 mark.
Ethereum: For Ethereum, the $1,750-mark acts as a near term resistance while the $1,600 level acts as the near term support.
It is noteworthy that open interest levels only provide a fair idea about support, resistance levels anticipated by the market and any major news-flow or event could lead to rapid movement in prices and a subsequent shift in open interest levels.
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Image and article originally from www.benzinga.com. Read the original article here.