This is a daily analysis of top tokens with CME futures by CoinDesk analyst and Chartered Market Technician Omkar Godbole.
Bitcoin (BTC) continues to trade directionless near $120,000 amid data from the Deribit-listed options showing a significant positive dealer gamma at the $120,000 and $120,500 strikes. When dealers have a positive gamma exposure, they buy low and sell high to rebalance their net exposure to neutral, inadvertently arresting volatility.
The crucial support area between $116,000 and $117,000, validated by both price charts and on-chain activity, if breached, would likely pave the way for a retest of the May high just below $112,000. Conversely, a convincing move above $120,000 will likely bring record highs.
That said, the case for an extended pullback looks strong, as the miniscule 0.12% green bar, confirmed on July 22 on the three-line break chart with daily configuration, indicates uptrend exhaustion.
Ether (ETH) has risen nearly 2% in the past 24 hours, hitting a seven-month high of $3,937 at one point, which invalidated the indecisive Doji signal from last week.
The momentum, however, was short-lived, as prices quickly pulled back to $3,880 as of the time of writing, validating the 14-day RSI, which did not confirm the fresh multi-month high in prices, hinting at potential bearish divergence and an impending correction. The daily chart MACD histogram also teased a bearish cross, with on-chain fundamentals like Ethereum’s native fees and revenue failing to keep pace with the rising prices.
The higher low of $3,510 established on Thursday remains key support, below which, the risk of an extended slide would increase. On the higher side, the $3,900-$4,100 is the key resistance range from 2024.
