Margin and option metrics suggest a potential path for Bitcoin to reach $28,000 amid the ongoing legal battle between Binance and the SEC.
Magistrate Judge Zia M. Faruqui rejected the SEC’s request for access to Binance.US’s systems, temporarily postponing the need for Binance to demonstrate the separation between Binance.US and Binance International.
Bitcoin surged to its highest level in three weeks, breaking above the $27,000 resistance, following the judge’s decision.
Investors must wait for further rulings, as a follow-up hearing is scheduled for October 12.
Metrics related to Bitcoin derivatives, such as margin and options, could provide insights into whether the rally has been supported by leverage or genuine spot buying demand.
The margin-lending ratio for OKX traders has dropped to its lowest point in three months, suggesting a decrease in leverage long positions.
The put-to-call ratio for Bitcoin options volume has shifted from favoring put options to a balanced level, indicating reduced interest in protective puts.
Both margin and options markets indicate a balanced demand between long and short positions, suggesting that excessive leverage hasn’t been utilized as Bitcoin’s price climbed.
However, there was limited enthusiasm from buyers in the margin and options markets, despite Bitcoin reaching its highest level in three weeks.
The data does hint at buying support from spot orders, possibly indicating accumulation by big entities or whales.
Bitcoin bulls have a window of three more weeks until the next hearing on October 12, during which a price rally above $28,000 is possible.
Summary:
– The legal battle between Binance and the SEC has taken a surprising turn.
– Bitcoin surged to its highest level in three weeks following the judge’s decision.
– Metrics related to Bitcoin derivatives suggest a balanced demand between long and short positions.
– Limited enthusiasm from buyers in the margin and options markets indicates potential buying support from spot orders.
– Bitcoin bulls have a window of three weeks until the next hearing, during which a price rally above $28,000 is possible.
