Bitcoin is currently facing significant resistance at the $61,300 level, struggling to maintain its price above $60,000. Despite a recent cooling in inflation data, investor sentiment remains bearish for both Bitcoin and Ethereum in the futures market.
However, bullish traders are actively trying to reclaim control. A key focus for investors is the upcoming Bitcoin options expiry on August 16, which could influence the next price trend for the cryptocurrency.
A total of 24,000 Bitcoin options with a put-call ratio of 0.83, and a notional value of $41.4 billion, are set to expire on August 16. These options have a maximum pain point of $59,500, indicating that the market is still undecided between buyers and sellers.
Bitcoin is currently trading at $58,453, showing a 3% decline over the last 24 hours, with technical indicators suggesting the possibility of a further drop to $54,000. The current options expiry accounts for 10% of all open positions, hinting at market instability.
Bitcoin Faces Resistance at $61,300 Amidst Bearish Sentiment and Expiring Options on August 16
In addition to Bitcoin, 184,000 Ethereum options are also due to expire on August 16. These have a put-call ratio of 0.80 and a maximum pain point of $2,650. Ethereum’s price has followed Bitcoin’s downward trend, falling to $2,574 with a 3.4% decline over the past 24 hours. Despite the favorable US inflation data, both Bitcoin and Ethereum are facing heavy selling pressure, preventing potential price rallies.
Bitcoin’s price volatility remains high, with significant fluctuations leading to liquidations in both long and short positions. On August 15, Bitcoin rebounded from a low of $56,150 to trade above $58,000, causing $75 million in liquidations. Popular trader Daan Crypto Trades referred to this movement as a “sweeping masterclass,” as Bitcoin rapidly moved past key highs and lows, leading to liquidations of leveraged positions.
Analysts are divided on Bitcoin’s future price movement, with some predicting further declines. Keith Alan, for instance, highlighted the formation of a fourth death cross on Bitcoin’s daily chart, indicating the possibility of a re-test of support levels around $49,500.
However, Alan also noted that death crosses do not necessarily signal prolonged bearish markets and can sometimes precede a positive uptrend. Therefore, while Bitcoin faces near-term risks, a recovery could still be possible in the longer term.
