3 INDICATORS SHOW TRADERS ARE BULLISH ON FRIDAYS BITCOIN FUTURES EXPIRY
Are you ready to dive into the intricate world of Bitcoin futures? UCS_Fridays A simple script to show the Fridays (Weekly Option Expiry), of course this is a basic script we can make a few more improvement. One of many ways to utilize the dayofweek variable. Currently there are no options to draw a vertical line, you can do a background color for the candle. Future plans - Include monthly option expiry.The cryptocurrency market is a dynamic arena, constantly buzzing with activity and speculation.One particular area that often sparks interest among traders is the Bitcoin futures market, especially as expiry dates approach. $ 3.19 Chainlink LINK $ 13.59 Avalanche AVAX $ 19.80 UNUS SED LEO LEO $ 8.95 Stellar XLM $ 0.26 Bitcoin Cash BCH $ 397.00 Toncoin TON $ 3.16 Shiba Inu SHIB $ 0.00 Hedera HBAR $ 0.17 Litecoin LTC $ 87.16 Polkadot DOT $ 3.90 Monero XMR $ 324.67 Ethena USDe USDe $ 1.00 Bitget Token BGB $ 4.60 Dai DAI $ 1.00 Pepe PEPE $ 0.00 Pi PI $ 0.62 Aave AAVERecently, several indicators have emerged suggesting a prevailing bullish sentiment among traders as Friday's Bitcoin futures expiry looms. News-driven traders can set targeted strategies with CME's Bitcoin Friday futures (BFF) contracts. The weekly expiry limits basis and caps rollover costs, facilitating improved profitabilityThis optimism stems from a combination of factors, including the increasing premium on longer-term Bitcoin futures contracts and a rise in top traders' net exposure. An aggregate of $5.5 billion in Bitcoin BTCUSD options is set to expire in the early hours of July 26. This month s expiry is particularly important because Bitcoin's price has faced immense negative pressure from several sources: the Mt. Gox bankruptcy proceedings distribution, the sale of 50,000 BTC by the German government, and the disposal of 14,000 BTC from the failed Genesis Trading firm.But what exactly does this mean for the average investor, and how can you interpret these signals to make informed decisions?
Market intelligence firm Santiment has identified key metrics that point toward a potential bullish movement for Bitcoin. For example, a trader could have sold a put option, effectively gaining positive exposure to Bitcoin above a specific price, but unfortunately, there's no easy way to estimate this effect. Bulls probably have less margin to support the price. Bitcoin bulls need to push the price above $18,000 on Friday to secure a potential $130 million profit.The large options expiry on Deribit, valued at a staggering $15.2 billion with $9.5 billion specifically for BTC options, further adds to the intrigue.Understanding these signals and their potential impact on Bitcoin's price can provide traders with a valuable edge.This article will delve into these indicators, exploring the underlying dynamics driving the bullish sentiment and providing insights into how to navigate the complexities of Bitcoin futures trading. The above chart shows that the futures premium held levels above 3.5% throughout the storm.This is equal to an annualized 14.5% level and indicates that there is optimism from professional tradersLet's explore what's fueling this bullish outlook and how you can leverage this knowledge to your advantage.
Decoding the Bitcoin Futures Premium: A Bullish Sign
The futures premium is a crucial indicator in the Bitcoin market, representing the difference between the price of a Bitcoin futures contract and the spot price of Bitcoin.A higher premium typically signals bullish sentiment, suggesting that traders are willing to pay more for Bitcoin in the future, anticipating further price appreciation.This is because futures contracts allow traders to speculate on the future price of Bitcoin without actually owning the cryptocurrency.
As the expiry date approaches, this premium becomes even more significant.When the longer-term Bitcoin futures contracts premium consistently increases alongside top traders' net exposure, it serves as a strong indicator of bullish sentiment for the upcoming Friday expiry. Market intelligence firm Santiment has identified three key metrics suggesting a potential bullish move for Bitcoin (CRYPTO: BTC).This suggests that sophisticated traders, often referred to as ""whales,"" are positioning themselves for a potential price surge, increasing their holdings and driving up the futures premium. The 2-day-long correction totaled an 8% downtrend and wiped out $230 million worth of leverage long (buy) futures contracts. The price move gave the false impression to bears that a sub-$15,500 expiry on the Dec. 9 options expiry was feasible, but those bets are unlikely to pay off as the deadline approaches.In essence, they are betting that Bitcoin's price will be higher in the future than it is currently.
Example of Futures Premium Impact
Imagine Bitcoin is currently trading at $65,000. Key derivatives indicators show pro traders remain strongly bullish even as Bitcoin price continues to reject The two-month futures should trade with a 0.8% to 2.3% premium in healthy marketsIf the futures contract expiring in a month is trading at $67,000, the futures premium is $2,000. Bitcoin futures are a type of futures contract that allows traders to speculate on the future price of Bitcoin without needing to own the cryptocurrency itself. Unlike spot trading, where you buy and sell Bitcoin directly, futures trading involves contracts with set expiration dates and agreed-upon prices.This premium indicates that traders are willing to pay $2,000 more for Bitcoin in the future, reflecting their optimism about its potential price increase. Traders should be aware of several key factors influencing Bitcoin (BTC) today. 1. Options Expiry on Friday. A large options expiry on Deribit worth $15.2 billion is happening on Friday, with $9.5 billion for BTC options alone.A consistently increasing premium, especially as the expiry date nears, amplifies this bullish signal.
Michael Dunn, President of Bitnomial exchange, has highlighted that a large premium in futures is usually a bullish indicator, signaling strong leveraged buy-side interest.This perspective further validates the importance of monitoring the futures premium as a gauge of market sentiment. Top Crypto Trading Signals to Know. Below is a shortlist of 10 bullish and bearish trading signals to recognise on the BTC chart. For more, check out our article on how to read crypto charts. Top Five Bullish Trading Signals. 1. Hammer. A bullish reversal candlestick pattern characterised by a small body and a long lower wick, appearing after aThe current premium on Bitcoin futures for the next quarterly expiry is trading at over $2,000 above the index price, emphasizing the strong bullish sentiment present in the market.
The Significance of Top Traders' Net Exposure
Top traders, often characterized by their substantial trading volumes and sophisticated strategies, play a pivotal role in shaping market trends.Their net exposure, which represents the difference between their long (buy) positions and short (sell) positions, provides valuable insights into their overall market outlook. The Options Open Interest (Expiration Date) Chart is a visual tool based on options trading data, used to display the open interest and expiration date distribution of cryptocurrency options contracts. This tool can show the changes in open interest of options contracts in different expiration date ranges, helping users to better understand the views and trading activity of market participantsA positive net exposure indicates a bullish stance, as it suggests that these traders are holding more long positions than short positions, anticipating a price increase.
The fact that top traders' net exposure has been consistently increasing alongside the longer-term Bitcoin futures contracts premium further reinforces the bullish sentiment surrounding Friday's expiry.This coordinated movement suggests a shared belief among experienced traders that Bitcoin's price is poised for growth. This gives the trader the opportunity to buy Bitcoin at a lower price, realizing a profit if they sell it at the current market price. Conversely, a put option allows the trader to sell Bitcoin at the strike price, even if the market price falls below it. For example, if the strike price is $85,000 and the market price drops to $80,000, theMonitoring the net exposure of top traders can provide valuable clues about the overall direction of the market and help you align your trading strategies accordingly.
It’s also worth noting that despite recent market volatility and corrections, key derivatives indicators show that professional traders remain strongly bullish on Bitcoin. Multiple indicators show pro and retail traders remain strongly bullish even as Bitcoin price failed to break $20,000.This resilience in the face of uncertainty underscores the strength of the prevailing bullish sentiment. 3 indicadores sugerem que os traders est o otimistas com o vencimento de futuros de Bitcoin na sexta-feira O pr mio de contratos futuros de Bitcoin de longo prazo aumentou consistentemente ao lado da exposi o l quida dos principais traders, sinalizando um sentimento de otimismo pelo vencimento de sexta-feira.Even when Bitcoin's price has faced immense negative pressure from various sources, these traders have maintained their optimistic outlook.
Decoding Bitcoin Options Expiry on Deribit
Options expiry is a crucial event that can significantly impact Bitcoin's price.A large options expiry, such as the one on Deribit valued at $15.2 billion, with $9.5 billion specifically for BTC options, can introduce substantial volatility into the market.Understanding how options expiry works and its potential effects is essential for traders looking to navigate these events successfully.
Options contracts give traders the right, but not the obligation, to buy (call option) or sell (put option) Bitcoin at a predetermined price (strike price) on or before the expiry date.As the expiry date approaches, traders holding options contracts often adjust their positions to either exercise their options or let them expire worthless.This activity can create significant buying or selling pressure, depending on the prevailing market conditions and the positioning of option holders.
How Options Expiry Affects Bitcoin's Price
The impact of options expiry on Bitcoin's price depends on the balance between call and put options. The Futures Expiration Calendar shows the date on which each futures contract will expire. Futures contracts are grouped together by market category. The calendar is a forward-looking calendar: it does not show expiration dates of contracts that have already expired for the current year.If there are more call options in the money (i.e., the strike price is below the current market price), traders may need to buy Bitcoin to hedge their positions, driving up the price.Conversely, if there are more put options in the money (i.e., the strike price is above the current market price), traders may need to sell Bitcoin, potentially leading to a price decline.A large options expiry, especially when coupled with other bullish indicators, can amplify these price movements.
For example, if Bitcoin bulls need to push the price above a certain level to secure a potential profit in the options expiry, they might engage in aggressive buying activity to drive up the price.Conversely, if bears aim to keep Bitcoin price below a specific level, they might exert selling pressure to maintain their advantage. Pre-market stock trading coverage from CNN. View pre-market trading, including futures information for the S P 500, Nasdaq Composite and Dow Jones Industrial Average.The outcome of this tug-of-war can significantly influence Bitcoin's price in the short term.
Bullish Technical Indicators to Watch Out For
Beyond futures and options data, certain technical indicators can also signal bullish momentum in the Bitcoin market. Trading Bitcoin futures provides the opportunity to make a profit on Bitcoin whether the price of the underlying asset goes up or down. Cons of Bitcoin Futures. Trading Bitcoin futures can be risky, especially when using leverage. As high as your gains can be, so too will your losses if the trade goes against you.Recognizing these patterns on the BTC chart can help you identify potential buying opportunities and make informed trading decisions.
- Hammer: This is a bullish reversal candlestick pattern characterized by a small body and a long lower wick, appearing after a downtrend. 3 indicadores muestran que los traders siguen alcistas respecto a la expiraci n de los futuros de Bitcoin del viernes La prima de los contratos de futuros de Bitcoin a largo plazo ha aumentado de forma consistente junto con la exposici n neta de los principales traders, lo que indica un sentimiento alcista para el vencimiento de futuros delIt suggests that buyers are stepping in to push the price higher.
- Bullish Divergence: A bullish divergence occurs when Bitcoin's price is making lower lows, but an oscillator like the Relative Strength Index (RSI) is making higher lows. The current premium on bitcoin futures for the next quarterly expiry is trading at over $2,000 above the index price. Image: Binance Futures. In an interview, Bitnomial exchange President Michael Dunn said the large premium in futures is usually a bullish indicator, signaling a strong leveraged buy-side interest.This indicates that the bearish momentum is weakening, and a potential reversal is imminent.One analyst noted Bitcoin forming a third bullish divergence between its price and RSI, while many traders were predicting lower prices.
- Tightening Bollinger Bands: Bollinger Bands consist of a middle band (a simple moving average) and two outer bands that represent standard deviations from the middle band. Despite the recent market rout, Bitcoin and Ethereum funding rates on perpetual futures contracts are still bullish, according to data from CoinGlass. Funding rates are periodic payments made between traders who are long (optimistic) and short (pessimistic) in perpetual futures contracts. UnlikeWhen the Bollinger Bands tighten, it suggests a period of low volatility, which often precedes a period of high volatility in either direction. CME Group announced it will launch in February options on bitcoin friday futures pending regulatory approval. These new contracts will be financially settled and expires every day of the businessIn a bullish context, a tightening of Bollinger Bands could indicate that Bitcoin is poised for a significant upward move.
In addition to these classic technical indicators, it's also worth monitoring funding rates on perpetual futures contracts. BTC bulls could secure a $130 million profit in the Dec. 9 options expiry, but bears aim to balance the scales by keeping Bitcoin price below $17,000. Bitcoin (BTC) price crashed to $15,500 on Nov. 21, driving the price to its lowest level in two years. The 2-day-long correction totaled an 8% downtrend and wiped out $230 million worth of leverage long (buy) futures contracts. The price moveDespite recent market volatility, data from CoinGlass shows that Bitcoin and Ethereum funding rates have remained bullish. Latest News - 3 Indicators Show Traders Are Bullish on Friday s Bitcoin Futures Expiry The longer-term Bitcoin futures contracts premium has consistently increased alongside top traders netThis indicates that traders are still willing to pay a premium to hold long positions in perpetual futures, suggesting continued optimism about Bitcoin's future price.
CME Bitcoin Friday Futures: A Tool for News-Driven Traders
The Chicago Mercantile Exchange (CME) offers Bitcoin Friday futures (BFF) contracts, which are specifically designed for news-driven traders looking to capitalize on key U.S. economic data releases and other market-moving events.These contracts expire every Friday at 4:00 p.m. Bullish Indications From Bitcoin Futures. Deribit s Chief Commercial Officer, Luuk Strijers, has highlighted the current state of the Bitcoin futures basis, which ranges between 18% to 25% annually, a rate reminiscent of the market conditions in 2025.ET, aligning with the release of important economic indicators and facilitating improved profitability.
CME Bitcoin Friday futures provide several advantages for traders:
- Weekly Expiry: The weekly expiry limits basis risk and caps rollover costs, making them an efficient tool for managing short-term trading strategies.
- News-Driven Trading: They allow traders to quickly react to news events and capitalize on the resulting price movements.
- Cash Settlement: The contracts are financially settled and expire to the CME CF Bitcoin Reference Rate New York Variant (BRRNY), ensuring a close alignment with the spot price of Bitcoin.
By leveraging CME Bitcoin Friday futures, traders can implement targeted strategies based on their expectations for upcoming economic data releases.For example, if a trader anticipates positive economic news, they can buy Bitcoin Friday futures to profit from the expected price increase. Chicago Mercantile Exchange's (CME) bitcoin BTC $96,009.65 futures that expire on Friday are ideally suited for news traders looking to bet on key U.S. economic data releases, CF Benchmarks' CEOConversely, if they expect negative news, they can sell Bitcoin Friday futures to hedge their positions or profit from a potential price decline.
Risks and Considerations When Trading Bitcoin Futures
While the bullish indicators discussed above may be encouraging, it's essential to acknowledge the risks associated with trading Bitcoin futures. The longer-term Bitcoin futures contracts premium has consistently increased alongside top traders net exposure, signaling bullish sentiment for Friday s expiry Please note, this is a STATIC archive of website cointelegraph.com from, cach3.com does not collect or store any user information, there is no phishing involved.The cryptocurrency market is inherently volatile, and unexpected events can quickly reverse prevailing trends.Therefore, it's crucial to approach Bitcoin futures trading with caution and implement sound risk management strategies.
Here are some key risks and considerations to keep in mind:
- Leverage: Trading Bitcoin futures involves leverage, which can amplify both profits and losses.While leverage can increase your potential returns, it can also lead to significant losses if the market moves against you.
- Volatility: Bitcoin's price is highly volatile, making it difficult to predict future price movements. 3 Indicators Show Traders Are Bullish on Friday s Bitcoin Futures ExpiryUnexpected news events, regulatory changes, or macroeconomic factors can trigger sharp price swings, potentially wiping out your positions.
- Counterparty Risk: When trading Bitcoin futures on an exchange, you are exposed to counterparty risk, which is the risk that the exchange or another trader will default on their obligations.
- Liquidation Risk: If you are trading with leverage and the market moves against you, your position may be liquidated, resulting in a loss of your initial investment.
To mitigate these risks, it's essential to use stop-loss orders to limit your potential losses, avoid over-leveraging your positions, and diversify your trading strategies. The longer-term Bitcoin futures contracts premium has consistently increased alongside top traders net exposure, signaling bullish sentiment for Friday s expiry.Additionally, it's crucial to stay informed about market developments and regulatory changes that could impact Bitcoin's price.
Practical Tips for Navigating Bitcoin Futures Expiry
Navigating Bitcoin futures expiry requires a combination of technical analysis, market awareness, and risk management.By understanding the dynamics driving price movements and implementing sound trading strategies, you can increase your chances of success.
Here are some practical tips to help you navigate Bitcoin futures expiry effectively:
- Monitor the Futures Premium: Keep a close eye on the futures premium, especially as the expiry date approaches. 3 Indicators Show Traders Are Bullish on Friday s Bitcoin Futures ExpirySource: CointelegraphPublished onA consistently increasing premium indicates bullish sentiment, while a decreasing premium suggests bearish sentiment.
- Track Top Traders' Net Exposure: Follow the net exposure of top traders to gauge their overall market outlook.A positive net exposure signals bullishness, while a negative net exposure indicates bearishness.
- Analyze Options Open Interest: Use the Options Open Interest (Expiration Date) Chart to understand the distribution of open interest across different strike prices and expiry dates. Bitcoin Friday futures and options expire to the CME CF Bitcoin Reference Rate New York Variant (BRRNY) every Friday at 4:00 p.m. ET. This may lead to a closer alignment with the spot price of bitcoin.This can help you identify potential support and resistance levels and anticipate price movements.
- Utilize Technical Indicators: Employ technical indicators such as the Hammer, Bullish Divergence, and Tightening Bollinger Bands to identify potential buying opportunities and confirm bullish signals.
- Manage Risk Carefully: Use stop-loss orders to limit your potential losses, avoid over-leveraging your positions, and diversify your trading strategies.
- Stay Informed: Stay updated on market developments, regulatory changes, and macroeconomic factors that could impact Bitcoin's price.
Common Questions About Bitcoin Futures Expiry
Q: What is Bitcoin futures expiry?
A: Bitcoin futures expiry is the date on which a Bitcoin futures contract expires.On the expiry date, the contract is settled, and traders either take delivery of Bitcoin (in the case of physical settlement) or receive a cash payment based on the difference between the contract price and the spot price of Bitcoin (in the case of cash settlement).
Q: How does Bitcoin futures expiry affect the price of Bitcoin?
A: Bitcoin futures expiry can introduce volatility into the market as traders adjust their positions to either exercise their options or let them expire worthless. On June 21, he noted that Bitcoin is forming a third bullish divergence between its price and RSI, while many traders are capitulating and predicting lower prices. He emphasized that the Bollinger Bands are tightening, which often precedes a period of high volatility.A large options expiry, especially when coupled with other market events, can amplify these price movements.
Q: What are the key indicators to watch out for during Bitcoin futures expiry?
A: Key indicators to watch out for include the futures premium, the net exposure of top traders, options open interest, and technical indicators such as the Hammer, Bullish Divergence, and Tightening Bollinger Bands.
Q: Is Bitcoin futures trading risky?
A: Yes, Bitcoin futures trading is inherently risky due to the volatility of the cryptocurrency market and the use of leverage.It's essential to approach Bitcoin futures trading with caution and implement sound risk management strategies.
Conclusion: Navigating the Bullish Signals
The indicators suggesting a bullish sentiment for Friday's Bitcoin futures expiry present an exciting opportunity for traders. Skip to main content Bitcoin Insider. MenuThe increasing futures premium, the positive net exposure of top traders, and the upcoming options expiry on Deribit all point towards a potential upward move in Bitcoin's price.However, it's crucial to remember that the cryptocurrency market is inherently volatile, and unexpected events can quickly change the landscape.By carefully monitoring these indicators, understanding the risks involved, and implementing sound trading strategies, you can increase your chances of capitalizing on the potential bullish momentum.Remember to always conduct thorough research and consult with a financial advisor before making any trading decisions.
The key takeaways from this analysis are:
- The longer-term Bitcoin futures contracts premium has consistently increased alongside top traders' net exposure, signaling bullish sentiment for Friday's expiry.
- A large options expiry on Deribit, valued at $15.2 billion, could amplify price movements.
- Technical indicators like the Hammer and Bullish Divergence can help identify potential buying opportunities.
- Risk management is crucial when trading Bitcoin futures due to market volatility and leverage.
Stay vigilant, stay informed, and be ready to adapt to the ever-changing dynamics of the Bitcoin market.Happy trading!
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