Bitcoin Price Drops as Put Calls Surge
The price of Bitcoin has declined to $26,500 levels, erasing the gains made earlier in the week. This drop comes as the total number of put calls in Bitcoin options has surged during Friday’s expiry. Approximately 22,000 BTC options are nearing expiration, with a Put Call Ratio of 1.00 and a maximum pain point at $26,500. The total notional value of these options is $590 million.
Investors have been actively acquiring put positions due to worsening market liquidity conditions. As a result, there has been a notable increase in put positions this week.
Bitcoin Price Support Levels
The Bitcoin price failed to surpass the $27,500 resistance and started a downward correction. It broke crucial support levels at $27,000 and $26,800, entering a bearish phase.
The BTC/USD hourly chart shows that a significant bullish trendline with support around $26,800 was breached. The pair retested the support zone at $26,350 and is currently consolidating its losses. It is trading close to the 23.6% Fibonacci retracement level of the recent drop from the $27,494 swing high to the $26,358 low.
Bitcoin is now trading below both $27,000 and the 100-hourly Simple Moving Average (SMA). The immediate resistance to the upside is near $26,800. The first major resistance zone includes $27,000, a bearish trendline, and the 50% Fibonacci retracement level of the recent decline from the $27,494 swing high to the $26,358 low.
The next crucial resistance level could be around $27,050. A break above this point could trigger bullish momentum and potentially push the price towards the $27,500 resistance. Further advances may even lead to a move towards the $28,800 level in the coming days.
Hot Take: Bitcoin Price Drops as Put Calls Surge
The price of Bitcoin has experienced a drop to $26,500 levels as the total number of put calls in Bitcoin options surged during Friday’s expiry. This increase in put positions reflects worsening market liquidity conditions and has led to a notable surge in put positions this week. The BTC/USD hourly chart shows that Bitcoin is currently trading below key support levels and is consolidating its losses. However, there is potential for bullish momentum if the price breaks above crucial resistance levels. Overall, the market sentiment remains uncertain as investors monitor the impact of put positions on Bitcoin’s price.
By
By
By
By