Bitcoin (BTC) price recovery attracted traction leading up to Friday's US employment report.
According to Coindesk data, the major cryptocurrencies by market value rose to $113,000, the highest and highest level since August 28th, and its first high since all time peaks in mid-August.
Technically, high heights signal a potential bullish reversal, as prices outweigh previous short-term peaks.
Bitcoin's market advantage, representing the overall share of the Crypto market, also rose from a low of 57.5% to 59%, nearly two weeks. It refers to updating capital inflows into Bitcoin. This is a transition from recent market dynamics featuring whales spinning from BTC to ether.
A bounce led by Max's pain?
Prices of BTC from low Asian sessions could have been catalyzed by the maximum pain theory.
Bitcoin BTC$112,690.06 The $3.28 billion worth of options expired at Delivit's 8:00 UTC, with the biggest pain at $112,000. It is at the price level that optional buyers suffer the biggest losses.
According to theory, as the expiration date approaches, option sellers, usually institutions with sufficient capital supply, look at the spot price pushing towards the point of maximum pain, in order to inflict the option buyers the greatest pain. They do so by trading underlying assets in the spot/futures market.
BTC prices rose to expiration dates above $112,000 early on Friday, almost exactly alongside Max Pain Theory. The theory of maximum pain is widely discussed and considered valid in the traditional market. This market is used to predict price movements near the expiration date of an option. However, some crypto critics remain uncertain about whether theory works effectively in the Bitcoin market.
Traders are currently waiting for a US employment report at 8:30 ET for the next potential driver.
