Still Some Green on Small Timeframes
Despite recent selling pressure, Bitcoin has managed to stay above $30,400, providing an opportunity for bulls to fight back. The current price of Bitcoin is $30,458 with sideways movement in the last 24 hours. While other cryptocurrencies have experienced losses, Bitcoin has shown similar price action over the previous week.
Bitcoin Options Expiration and Potential Volatility
Over $7 billion in Bitcoin options contracts are set to expire, allowing option holders to exercise their right or obligation to buy/sell BTC at a specific price. This could lead to a spike in buying pressure as major option players hedge their positions. Analyst Tom Dunleavy suggests that spot prices could soar above $31,000 due to increased buying pressure from dealers.
Short- and Long-Term Risks and Scenarios for BTC
Blofin, an analysis and crypto education firm, highlights that the recent rally in BTC was driven by positive news and a rebalancing of internal liquidity. While there is a liquidity issue in the sector that may limit any rally, there is still potential for Bitcoin to rebound to $35,000 and above. The firm believes that the decline in BTC’s price will be limited, with a small probability of falling below $28,000.
Hot Take
Despite the recent selling pressure, Bitcoin has managed to hold its ground above $30,400. With the expiration of options contracts, there is potential for increased volatility and a possible surge in BTC’s price. While there are short- and long-term risks, there is optimism for a rebound to $35,000 and above.
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