- The BTC price is currently consolidating, with bulls and bears fighting for control.
- The upcoming weekly BTC option expiry of $1.2 billion worth of open interest could result in a few possible scenarios depending on the price range.
- BTC needs to reclaim the $28,000 mark to maintain a fine upswing ahead.
Bitcoin Consolidation Weakens Bullish Momentum
The past few days have seen no specific price action as the markets continue to consolidate. The BTC price is hovering around $28,000, displaying active participation from both buyers and sellers. As Bitcoin slowly diverges towards the interim lower support, there’s potential for red flags in the coming days.
Options Expiry Could Lead To Outcomes In Favour Of Bulls or Bears
The weekly Bitcoin option expiry of $1.2 billion worth of open interest is fast approaching. However, most bets are placed on Bitcoin trading above $29,000 which could skew the outcome significantly lower than expected. Depending on where Bitcoin’s price stands at expiry time (between $26,000 -$30,000) there could be outcomes that favour either bulls or bears:
• Between $26K and $27K – Put call impact of around $150 million
• Between $27K and 28K – Put call impact of around $60 million
• Between 28K and 29K – Bull advantage with profit up to 100 million
• Between 29K and 30K – Bull advantage with profit up to 240 million
Crucial levels for expiry are around the 28k mark so it’s expected that this level will be maintained until then.
Bitcoin Price Needs To Reclaim 28k To Maintain Upward Trend
Currently the major resistance that acted as strong support back in June-July 2022 has been unable to be reclaimed by Bitcoin’s price causing a pullback rather than an accumulation phase. This means if a breakout isn’t recorded soon enough we may see prices fall back below 27k before any further upward movement can occur.
With just over a week until options expiry it remains unclear what direction we will see Bitcoin move in but one thing is certain – it needs to reclaim its previous resistance levels near 28k if it wants any chance at maintaining an upward trend going forward into May 2021.