Bitcoin, XRP anchored to ‘price magnets’ at $ 110k and $ 2.30 because Ether looks prone to volatility
Bitcoin
and XRP (XRP) is trading sideways, which is likely to be driven by a hidden force that maintains both cryptocurrencies that are anchored at major price levels.
However, both “price magnets” can add to the ether (Et) Volatility of the market.
We are talking about market makers – the creatures that have been assigned to creating liquidity in the order book order. These creatures are always in the opposite side of entrepreneurs/investors and earn money from bid-ask spread, as they continue to strive to maintain a neutral price exposure. Their techniques of hearing on futures/spot markets are often added to or hinder volatility in the market.
In the BTC case, market manufacturers are “Long Gamma” with a beating of $ 108,000 and $ 110,000, according to the activity listed in the derivit monitored by the Aberdata. Position indicates that market makers hold long choice (calls and puts)that stands to benefit from potential volatility.
As a result, market manufacturers are likely to trade against market-movements high and buy low-to maintain a direction-neutral book, effectively keeping the BTC pinned to $ 108,000- $ 110,000 range. The price of the BTC often exchanged the scope this month, according to CoinDesk data.
A similar dynamic seems to be playing in the XRP market, where a large positive gamma market manufacturer is composed is observed at the price of the strike of $ 2.30. That calls for manufacturer makers to buy low and sell high around the level of volatility.
Ether susceptible to volatility
Ethereum’s native ether token, the second largest cryptocurrency by market value, hit a high $ 2,647 early on today, the level last seen on June 16.
The move pushed Ether to a “negative Gamma market manufacturer” of $ 2,650- $ 3,500. When entrepreneurs are holding a negative gamma, they are likely to trade in the direction of the market, exaggerating the moves/bearish moves.
In other words, their healing activities can add to the bullish momentum of ether, exacerbating volatility, thinking that other things are equal.
