Bitcoin Faces Triple Threat: Options Expiry, Market Sentiment, and Risky Chart Pattern
Bitcoin price is poised for a third consecutive week of decline as traders prepare for a massive $15 billion options expiry.
A few factors contribute to this downturn. Firstly, Bitcoin price dropped to $108,000 on august 29, marking a notable fall from it’s all-time high of $124,200. Added pressure comes from a crucial support level that,if breached,could usher in further declines.
Crypto markets often experience volatility near significant options expiry dates. This volatility mirrors what is seen in the stock market during similar events. On this occasion, Bitcoin is facing a substantial $15 billion options expiry. Data from Deribit suggests short sellers aim to push Bitcoin prices between $95,000 and $110,000.
- Over $15 billion in Bitcoin and Ethereum options set to expire soon.
- Options open interest hit $57 billion,indicating increased betting activity.
- Weekly chart patterns hint at a potential strong price dip in coming weeks.
However, there’s ancient evidence showing Bitcoin can rally a few days post-expiry. The positive weighted funding rate supports this optimism.
The current risk-off attitude in broader markets compounds the issue. major indices like the Nasdaq 100 and Dow Jones saw significant drops recently, influenced by rising consumer prices in the US.
A concerning chart pattern emerges on Bitcoin’s weekly graph. An ascending wedge formation since March last year signals a possible strong crash. If Bitcoin slips below $105 – the wedge’s lower support – the price could plummet towards $74,470.
