Bitcoin is still stuck around $10,000. The leading cryptocurrency has been trading above $10,000 level since before the week started and continues to do still.
BTC/USD has been trading at $10,180 on Bitstamp with 24 hour gains of 0.29% while trading volume drops down from $750 million to $541.8 million as per Messari.
Analysts and traders have been expecting Bitcoin to make its way back to $8,000 as analyst The Cryptomist still is leaning towards as she wrote,
“I think we break out this ascending triangle on 3hr towards descending triangle 10.8k region before larger drop. *Invalid if ascending support is broke.*”
However, the lack of any movement in BTC price has the market commentators losing any certainty as to the next move the flashing cryptocurrency will make.
Bitcoin to Drop to $8k or Follow Gold to the Upside?
The market might be divided on what we will happen now, but one thing seems to be sure, “All will be revealed within this week!”
The clock is ticking… https://t.co/SZNCDRXoBK
— Credible Crypto (@CredibleCrypto) August 28, 2019
Interestingly, this Friday, approximately 50 percent of total open interest on Bitcoin futures is set to expire on CME as per the data shared by Skew markets.
Open interest is the outstanding derivatives contracts such as futures and options that haven’t been settled for an asset. It actually provides a more accurate picture of the trading activity and whether money is flowing into the futures.
~50% of total open interest set to expire this week at CME
Some of those positions will be rolled but overall institutional investors have been looking elsewhere in August! pic.twitter.com/GnngLZkhhF
— skew (@skew_markets) August 27, 2019
In the past, the expiry of Bitcoin futures has affected the price of the digital currency. And this time the sentiments in the market are bearish as Skew markets stated,
“Some of those positions will be rolled but overall institutional investors have been looking elsewhere in August!”
CME $BTC futures (Aug contract) expires this Friday.
My guess, things won't stay boring for long.
— Bit฿it (@BitBitCrypto) August 28, 2019
Now, it’s to be seen if Bitcoin will finally see $8,000 as many people have been expecting or we will yet again follow gold on a breakout.
The correlation between Bitcoin and gold has risen in the past three months, from 0.496 over the past year to 0.837. Most recently, the gold price rallied to a high of $1,555 an ounce, a level last seen in April 2013 only to stop near $1,550.
Amidst dragging US-China trade war and fragile global economy, experts are calling out for making the shift to the safe haven asset, gold. Apart from yellow metal, US 10-year Treasuries is seeing heightened demand while Bitcoin trades near $10,000.