BTC/USDT – Technical Outlook, Cumberland and Goldman Sachs takes a closer look at Bitcoin Ether derivatives

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Two of the world’s biggest names in finance, Cumberland Global and Goldman Sachs, are offering clients alternative exposure to Bitcoin and Ether.

Last week, Cumberland, a major market maker, launched OTC bilateral options on the leading crypto pairs.

Goldman Sachs is following in its footsteps with similar contracts.

OTC options are created peer-to-peer through a safe and secure messaging system in contrast to standard options that trade on regulated exchanges.

Goldman Sachs and Cumberland will both offer bilateral options on their current OTC markets.

Technical Analysis Daily Time frame

BTC Technical Analysis Daily Time Frame

Analysis using price action:

BTC/USDT, after reaching a high of $69,000, has been on a significant downtrend shredding over 52.37% after making a low at $32,917.17. The price respected the bearish trend line until 4th Feb 2022.

After breaking the bearish trend line, the price increased, gaining around 38.92% from the major structure low at $32,917. However, the price came down again to test the broken zone giving a good buying opportunity to the traders. The low formed was at $34,322.28.

From the most recent price action point of view, the price was not successful in breaking the previous major high and remains to trade between the $45821 high and $34,322.28 low zone, meaning the price is moving in a consolidation state.

Traders are recommended to wait for the break below or above the red zone and clear trend movement.

Technical Analysis 4hr Time-frame

BTC Technical Analysis 4hr Time-frame

Price can clearly be seen in a ranging phase on the lower time frame. The price touched the support on 24th Jan 2022 and was unable to break it instead moved up again, forming a swing high at $45,811.64.

Here the price respects a bullish trend line. If the price breaks out of the smaller red zone, moving up, it can show some bullish pressure, and the price can reach the near resistance zone at $45,331.26. However, if the price fails to break the range zone and instead move down, it can come down near the $32,910.03 support zone.

Potential pivot points using Price Action:

Resistance PivotSupport Pivot
R140606.0S138199.0
R241495.0S236681.0
R343013.0S335792.0

This considerable resistance and support level can enter or exit when approaching future market openings.

Key Trading Recommendation

With the two financial giants adapting their crypto offerings, it can only be good news for crypto enthusiasts.

The price of  Bitcoin quickly rallied yesterday after the US executive order on crypto but fell shortly thereafter. This is an indication of the high fluctuation of this digital asset. 

Nitish Vaibhav
Nitish Vaibhavhttp://thetradingbay.com
Nitish Vaibhav is the Founder of the The Trading Bay. A computer science engineer turned an Entrepreneur 5 years ago. He has been in trading since 4 years in Forex and Crypto using his price action strategies. Involved in Content Creation full time for 3 years, Nitish is top rated writer on many content writing websites. He is also a YouTuber in India making videos about Crypto and Forex.

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