The post Bitcoin Lull Could Spur Altcoin Rally, With $90K Considered “Attractive” appeared on BitcoinEthereumNews.com.

Traders expect bitcoin (BTC) choppiness to continue with a possible rotation to altcoins, as a major options expiry weighs on market dynamics in the festive week ahead. “All eyes are on the massive expiry this Friday, where almost $20B notional across BTC and ETH options will expire,” Singapore-based QCP Capital said in a broadcast message early Tuesday. “This represents almost half the total OI on Deribit. We believe it’s quite possible especially if spot continues to range here and as option sellers continue to roll their shorts out.” “Rolling” means that instead of letting their options expire, traders shift their positions to later expiration dates. This is often done to keep the trade active if they still believe in their market forecast. High volatility can be good for option buyers because it increases the chance that the option will be “in-the-money” (profitable) at some point before expiry — creating profit for buyers. “As BTC continues to struggle below 100k, we could also see alts start to play catch up again,” QCP said, adding that a similar trend was observed a month ago when bitcoin was trading at current price levels. The ether/bitcoin ratio bounced off a 0.032 support at the time, as reported, spurring movement in altcoins. The crypto market often goes through cycles in which bitcoin leads the charge, followed by altcoins. Investors sitting on fresh market gains seek additional returns, and a flow of capital to altcoins leads to wild rallies in short periods. Bitcoin is currently going through one of its worst December months so far, dampening a seasonally bullish period with a 2% drop over the past 30 days. Hopes of a “Santa rally” — where the asset tends to surge in the festive week — have been dented amid profit-taking and a cautious mood after…

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Filed under: News - @ December 24, 2024 5:23 am