Popular cryptocurrency Bitcoin appears to be bullish after months of downtrend, rising nearly 20 per cent in the past five days. On Tuesday afternoon, it was trading at $34,455.40.
Bitcoin had neared the $35,000 mark on Monday, a 16-month high. With the relative strength index (RSI) indicator showing strong momentum, there are chances that the price may continue to go up. It is likely that Bitcoin may cross the psychological $35,000 mark soon if the buying continues.
According to Alex Thorn, research head at digital asset investment company Galaxy, the uptrend may prompt option dealers to hedge their positions above the $30,000 level. "At its peak around $32,500, almost $20 million of BTC will need to be purchased by options dealers for every 1 per cent move up to stay delta neutral," Thorn said in a market report, according to Coindesk.
The optimism comes in the wake of a recent report by ETF specialist Eric Balchunas who tweeted: "The iShares Bitcoin Trust has been listed on the DTCC (Depository Trust & Clearing Corporation, which clears NASDAQ trades). And the ticker will be $IBTC. Again all part of the process of bringing ETF to market. $IBTC is def a zzzzz ticker considering the options, but it fits BLK brand (they more straight up the middle) and arguably better than something like $HODL if goal is to make it into client accounts of rich boomers who use wealth managers."
Bitcoin had recently re-established market dominance with a 53.1 per cent share.
Todd Groth, head of research at CoinDesk Indices, recently tweeted that "BTC, ETH and the CoinDesk Market Index (CMI) all up week over week while decoupling from tech stocks $QQQ and rising long dated yields."