Crypto Quest

Cboe, the derivatives exchange for digital assets and securities trading, is set to make a big addition to the crypto landscape by launching the first cash-settled index options linked to Bitcoin’s (BTC) spot price movements. Scheduled to debut on December 2, these options will be based on the Cboe Bitcoin ETF Index, which tracks a selection of US-listed spot Bitcoin exchange-traded funds. 

What This Means For Traders

The introduction of these options follows closely on the heels of Nasdaq’s recent listing of spot Bitcoin ETF options. This move allows US investors to utilize derivatives to speculate on or hedge against BTC’s price movements. 

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Alex Thorn, head of firmwide research at Galaxy Digital, emphasized that reducing Bitcoin’s volatility could significantly alter investor perceptions. The availability of cash-settled options will provide institutions with effective tools to hedge their positions, potentially increasing overall market liquidity. 

This influx of options trading could also influence retail trading behavior, especially during bullish market conditions. Notably, the current surge in Bitcoin’s price, which reached an all-time high of $99,300, has been partly attributed to increased trading activity and market optimism. 

Therefore, introducing cash-settled options could further push Bitcoin over the $100,000 mark, especially given the increased buying pressure seen in recent days. 

Cboe’s options on the Bitcoin ETF Index will also enable market participants to gain exposure to spot Bitcoin ETFs and, by extension, to Bitcoin itself. The cash-settled nature of these options is said to simplify the process, as positions will be resolved in cash at expiration. 

Additionally, the options will feature a “European-style exercise,” meaning they can only be exercised on the expiration date, thus minimizing the risks associated with early assignment.

Cboe Mini Bitcoin ETF Options

In conjunction with the standard-sized index options, Cboe plans to launch Cboe Mini Bitcoin ETF Index options (Ticker: MBTX), valued at one-tenth the notional value of the standard options. 

Moreover, Cboe will also offer cash-settled FLEX options on both the standard and mini index options. FLEX options enable traders to customize key contract terms such as exercise price, exercise style, and expiration date, providing further flexibility in trading strategies and allowing for larger positions than typically permitted with standard options contracts.

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Rob Hocking, Cboe’s Global Head of Product Innovation, highlighted the benefits of cash settlement and the variety of index sizes available, which are expected to attract institutional and retail participants looking to hedge or capitalize on Bitcoin’s price movements without directly holding the asset.

The exchange already lists cash-settled Bitcoin and Ether margin futures on Cboe Digital Exchange, with plans to transition these products to the Cboe Futures Exchange in the first half of 2025, pending regulatory approval. 

Cboe’s BZX Equities Exchange also holds a leading position in the US market for spot crypto ETFs, having captured a majority market share of available Bitcoin and Ethereum ETFs.

When writing, the market’s leading cryptocurrency is trading at $99,240. 

Featured image from DALL-E, chart from TradingView.com

Dogecoin (DOGE) is once again in the spotlight, drawing attention from crypto enthusiasts and analysts. Recent trends suggest growing interest in the popular meme coin, but conflicting indicators leave the market’s next move uncertain. From search trends to mining milestones, Dogecoin has plenty going on, keeping its community engaged.

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Search interest in Dogecoin peaked today, November 22, coinciding with a price increase, data from Google Trends shows. However, as public curiosity declined, so did the price, demonstrating a significant link between attention and performance. While some see this as an indication of Dogecoin’s unexpected character, others believe that it demonstrates how community-driven it is.

Mining Activity Reaches New Peak

Dogecoin is on a tear and its network enjoying solid numbers. Proof of this is its soaring hashrate, which touched an all-time high. This strengthens the security and stability of the blockchain as well as being more appealing to miners and investors.

Crypto expert Master Kenobi believes mining DOGE has become more profitable than the cycles by Bitcoin with regards to halving, as steady payouts provide greater stability in the old system.

💥 #DOGE hashrate on ATH 🚀

In the long term, I believe #DOGE mining could become more profitable and less stressful for miners compared to #Bitcoin mining, as it offers greater predictability without the disruptions caused by halving events. This stability would contribute to… pic.twitter.com/IOIkuK8mCe

— Master Kenobi (@btc_MasterPlan) November 20, 2024

With the increasing hashrate, expanded infrastructure also comes into the picture, giving more hope to the future of Dogecoin. A stable mining environment assures security and serves as a basis for the growth of the ecosystem.

Traders Are Becoming More Optimistic

Seasoned cryptocurrency expert expert Tardigrade sparked enthusiasm in the Dogecoin community by highlighting a major technical trend on its charts. The expert identified a “Hidden Bullish Divergence,” a structure that frequently indicates a reversal or slowing in bearish momentum.

His analysis has sparked rumors that Dogecoin might be getting ready for its next innovation. Positive mood seems to be mostly prevalent when taken with the existing “Extreme Greed” value of 94 on the Fear & Greed Index. But the notable volatility (42.27%) over the past month calls for prudence on behalf of investors.

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A Mixed Price Forecast

Though there is growing hope, Dogecoin projections remain dubious. Analysts project a -6.83% decline with a December 22, 2024 price of $0.369286. Although the Fear & Greed Index is rather positive, history shows that such times usually precede temporary corrections.

For investors, the combination of enthusiasm and prudence creates a perilous atmosphere. On the one hand, increased hashrate and technical indications appear good. However, because of Dogecoin’s unexpected nature, risks are always present.

Dogecoin’s market remains volatile, fueled by its community, mining stats, and social emotion. Whether it’s a good moment to purchase or sell is determined by the community’s risk tolerance. One thing is certain: Dogecoin never fails to keep the cryptocurrency community guessing.

Featured image from WSJ, chart from TradingView

As Bitcoin (BTC) reached a new all-time high (ATH) of $98,310 today, the ETH/BTC trading pair fell to multi-year lows, raising questions about the relative strength of Ethereum (ETH), the second-largest digital asset.

What’s Causing Ethereum’s Underperformance Against Bitcoin?

Bitcoin’s new ATH earlier today brings it within $2,000 of the coveted $100,000 mark. However, BTC’s sustained dominance has resulted in the underperformance of altcoins, particularly Ethereum, throughout the year.

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The weekly chart below reveals that the ETH/BTC trading pair has dropped to a multi-year low of 0.0331 – a level last seen in March 2021. Since December 2021, the pair has failed to form a new higher high, reflecting a decline of over 60%.

The pair’s losses have accelerated since July 2024, coinciding with Bitcoin’s price surge, driven by rising optimism over pro-crypto Republican candidate Donald Trump’s prospects in the U.S. presidential election.

The success of Bitcoin exchange-traded funds (ETFs) has also contributed to institutional preference for BTC over other cryptocurrencies. At present, BTC ETFs hold more than $100 billion in total net assets.

While Ethereum ETFs have also received regulatory approval, they haven’t matched the success of their Bitcoin counterparts. For instance, US-based spot Ethereum ETFs have accumulated only $8.96 billion in total net assets so far.

Additional factors, such as Bitcoin’s halving in April 2024 – reducing miner rewards from 6.25 BTC to 3.125 BTC—have further reinforced BTC’s supply scarcity narrative. In contrast, Ethereum’s rising issuance rate has led some experts to question its “ultrasound money” status.

Additional factors such as Bitcoin halving in April – which slashed miner rewards from 6.250 BTC to 3.125 BTC – further reinforced the digital asset’s supply scarcity narrative. In contrast, Ethereum’s rising issuance rate has led some experts to question its “ultrasound money” status.

When Will Ethereum Recover Losses Relative To BTC?

With the ETH/BTC trading pair hitting new lows, Ethereum traders are eager to know when ETH might recover its losses. Several analysts have shared their views on X.

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Crypto analyst @CryptoGemRnld recently identified two strong support zones: a trendline support and a demand box zone. According to the analyst, since 2017, the ETH/BTC pair has historically rebounded from these levels, often leading to altcoin seasons.

Similarly, seasoned trader Peter Brandt has suggested that the ETH/BTC ratio may be approaching its bottom. Brandt’s analysis predicts a potential reversal in December, with the trading pair beginning an upward trajectory.

Supporting this outlook, recent data indicates that ETH may be undervalued at current prices. The limited inflow of ETH to exchanges, coupled with a lack of significant profit-taking, suggests that ETH bulls are holding out for further gains.

Additionally, spot ETH ETFs have been recording significant inflows, attracting over $515 million between November 9 and November 15. At press time, ETH trades at $3,333, up 7.4% in the past 24 hours.

Featured image from Unsplash, charts from Tradingview.com

Ethereum price started a fresh increase above the $3,220 zone. ETH is rising and aiming for more gains above the $3,350 resistance.

• Ethereum started a fresh increase above the $3,220 and $3,300 levels.
• The price is trading above $3,250 and the 100-hourly Simple Moving Average.
• There is a short-term contracting triangle forming with resistance at $3,360 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could gain bullish momentum if it clears the $3,385 resistance zone.

Ethereum Price Regains Traction

Ethereum price remained supported above $3,000 and started a fresh increase like Bitcoin. ETH gained pace for a move above the $3,150 and $3,220 resistance levels.

The bulls pumped the price above the $3,300 level. It gained over 10% and traded as high as $3,387. It is now consolidating gains above the 23.6% Fib retracement level of the recent move from the $3,036 swing low to the $3,387 high.

Ethereum price is now trading above $3,220 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $3,350 level. There is also a short-term contracting triangle forming with resistance at $3,360 on the hourly chart of ETH/USD.

The first major resistance is near the $3,385 level. The main resistance is now forming near $3,420. A clear move above the $3,420 resistance might send the price toward the $3,550 resistance. An upside break above the $3,550 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,650 resistance zone or even $3,880.

Another Decline In ETH?

If Ethereum fails to clear the $3,350 resistance, it could start another decline. Initial support on the downside is near the $3,300 level. The first major support sits near the $3,250 zone.

A clear move below the $3,250 support might push the price toward $3,220 or the 50% Fib retracement level of the recent move from the $3,036 swing low to the $3,387 high. Any more losses might send the price toward the $3,150 support level in the near term. The next key support sits at $3,050.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 zone.

Major Support Level – $3,250

Major Resistance Level – $3,385

On-chain data shows the XRP Binance Netflow has spiked to positive levels recently. Here’s what this could mean for the asset’s price.

XRP Investors Have Been Depositing To Binance Recently

As explained by an analyst in a CryptoQuant Quicktake post, a large amount of XRP deposit transactions have headed to Binance recently. The on-chain metric of relevance here is the “Exchange Netflow,” which keeps track of the net transfers going in or out of a given centralized exchange.

The traditional form of this metric measures the difference between the inflow and outflow volume for the platform, but in the context of the current topic, a different version of the indicator is of interest: one that counts the net number of deposit/withdrawal transactions.

When the value of the metric is positive, it means there are more inflow transfers happening for the exchange than outflow ones. As one of the main reasons why investors deposit to these platforms is for selling-related purposes, this kind of trend can be bearish for XRP.

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On the other hand, the indicator being negative implies withdrawals are dominant on the exchange. Such a trend can be a sign that holders are interested in HODLing into the long term, which can naturally have bullish effects on the price.

Now, here is a chart that shows the trend in the 30-day moving average (MA) of the XRP Exchange Netflow for Binance over the last couple of years:

As is visible in the above graph, the XRP Exchange Netflow for Binance has mostly stayed inside the positive territory during the last two years, which suggests investors have constantly been making withdrawal transactions.

Recently, however, the metric appears to have diverged from the norm, as its value has registered a sharp positive spike. The asset has seen a sharp rally of over 54% in the past week, so it’s possible that the traders making the deposits are looking to sell and realize their profits.

Now, the main question is, is this selling a potential threat to XRP’s value? The indicator is sitting at 470 right now, which suggests significantly more inflows than outflows. Considering that this is also just the 30-day MA, the peak value is bound to be even higher.

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While this high number of inflow transactions may look like a danger at first glance, it may actually not be so, since it corresponds to activity that’s mostly from the retail investors.

Whales don’t tend to leave behind too many transactions, as they prefer to move large amounts with a single transaction. Thus, whenever this version of the Exchange Netflow spikes, it’s a sign that the small holders are depositing.

Naturally, there could still be a few whale transfers among these inflows, which can indeed end up having a negative effect on the XRP price. It only remains to be seen, though, which of the scenarios holds true.

XRP Price

XRP has pulled ahead of the rest of the market with a sharp rally during the past week, which has taken its price to $1.09.

Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

Ethereum price started another decline below the $3,150 zone. ETH is struggling and might decline further below the $3,000 support zone.

• Ethereum is slowly moving lower below the $3,150 zone.
• The price is trading below $3,100 and the 100-hourly Simple Moving Average.
• There is a connecting bearish trend line forming with resistance at $3,080 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could extend losses if there is a close below the $3,000 support zone.

Ethereum Price Struggle Continues

Ethereum price attempted an upside break above the $3,200 resistance but failed unlike Bitcoin. ETH started a fresh decline below the $3,150 and $3,120 support levels.

There was a move below $3,080 and the price tested $3,040. A low is formed at $3,033 and the price is now consolidating. It tested the 23.6% Fib retracement level of the recent drop from the $3,225 swing high to the $3,033 low.

Ethereum price is now trading below $3,000 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $3,080 level.

The first major resistance is near the $3,120 level or the 50% Fib retracement level of the recent drop from the $3,225 swing high to the $3,033 low. The main resistance is now forming near $3,180. A clear move above the $3,180 resistance might send the price toward the $3,220 resistance.

An upside break above the $3,220 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,450 resistance zone.

More Losses In ETH?

If Ethereum fails to clear the $3,100 resistance, it could start another decline. Initial support on the downside is near the $3,030 level. The first major support sits near the $3,000 zone.

A clear move below the $3,000 support might push the price toward $2,920. Any more losses might send the price toward the $2,880 support level in the near term. The next key support sits at $2,740.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 zone.

Major Support Level – $3,030

Major Resistance Level – $3,100

The Bitcoin price movements have recently formed a bullish symmetrical triangle pattern, a technical indicator that often precedes significant upward momentum. This pattern formation has come amidst a back and forth between $93,477 and $85,970 after the Bitcoin price reached an all-time high of $93,477 on November 14.

The observation of this bullish symmetrical triangle was highlighted on the social media platform X by the crypto analyst known as Stockmoney Lizards, who is also credited with developing the Satoshimeter indicator.

Symmetrical Triangle Points To A Bitcoin Price Breakout

A symmetrical triangle is formed when a descending resistance line and an ascending support line converge, indicating a period of consolidation. As the price approaches the apex of this formation, it typically breaks out in the direction of the prevailing trend. 

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In the case of Bitcoin, the Bitcoin price action on the daily candlestick timeframe has been one of a series of lower highs and higher lows for about the past week. This formation has led to the Bitcoin price trading in an increasingly tightening range, which is ultimately going to breakout in either direction. 

For Bitcoin, the existing uptrend suggests a potential breakout above the upper trendline of the symmetrical triangle, which is just below $91,000. To confirm such a breakout, analysts look for a spike in trading volume and at least two consecutive closes beyond the trendline.

Commenting on this setup, the Stockmoney Lizards stated, “The current setup suggests a potential breakout to the next level. All eyes are on 100k. This is when retail investors will crush the candy store and the real fun will start.” 

Such a breakout, if confirmed, could lead Bitcoin to establish new highs above the six-digit threshold of $100,000, which in turn would trigger a wave of inflows into other cryptocurrencies.

Next Bitcoin Price Target: $100,000

The psychological milestone of $100,000 has been a focal point for Bitcoin enthusiasts and analysts since the beginning of this bull cycle. Notably, the calls for a $100,000 price target have been even more pronounced since the Bitcoin price broke above its March high of $73,737 earlier this month. 

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At the time of writing, Bitcoin is trading at $91,770, having reached an intraday high of $92,653 in the past 24 hours. This means it has effectively broken out of the symmetrical triangle since Stockmoney Lizards’ technical analysis. Interestingly, the analyst highlighted this breakout in an update to his analysis.

Now that the breakout of the symmertical triangle has been effectively confirmed, it remains to be seen whether the Bitcoin price can reach the coveted $100,000 price mark before the end of November. All indicators point to go, with the demand for Bitcoin currently far outpacing the supply.

Featured image created with Dall.E, chart from Tradingview.com