Time is Running Out for Bitcoin Bulls; 23k in Futures and 10k in Options Set to Expire This Week
May isn’t turning out to be a good month.
“May has been pretty uneventful from a price action perspective. Bitcoin trading in a relatively tight range despite halving & old coins moving” stated Skew Markets.
Could this be “Sell in May and go away” happening?
A well-known financial-world adage, it is based on the underperformance of some stocks in the summer, the six-month period that starts in May and ends in October.
Also, the coronavirus has already hit the stocks market and the world hard in the first quarter of 2020. And S&P 500 is actually close to reaching 3,000.
“I don't want to be the guy who gets caught short bitcoin while this is happening. You'd tell me no correlation, I'll tell you oke,” said trader BitBit on the rising stock market.
Moreover, Nasdaq is only 3% off its all-time high.
“It's hard to believe the other equities won't follow. Hands down clearest to me is the small caps russell 2000 which I think will also make a new ATH above 2000,” said trader Benjamin Blunts. “Don't fight the money printer, BRRRRRR .”
May to end up looking like trash?
When it comes to investor behavior, addresses continue to surge while whales are accumulating.
Analyst Mati Greenspan who moved out of bitcoin last week is now back in and that too “heavily.” This is because the digital asset has “held support well over the weekend.”
“Will get out if support breaks but with the stock markets are risk-on and I'm feeling good today,” said Greenspan.
But the declining on-chain fundamentals are threatening to undo the progress which means we may see a “regression back into bearish territory.”
Adding to the bearish sentiments are the 23,000 Bitcoin equivalent futures and 10,000 bitcoin options that are set to expire this Friday on CME.
There is approximately 50% of open interest for each of these bitcoin products on the regulated Chicago Mercantile Exchange.
“Time running out for the bulls. Close the week/month around $8.6k and this month will look like trash,” said trader Filb Filb.