Bitcoin’s slump has contributed to a bearish trend across the crypto market. Notably, 20,000 Bitcoin options expire on June 14, 2024. Their expiry will set the maximum pain point at $68,500, creating uncertainty in the market.
The maximum pain point is a critical concept for options traders. This is the price at which the most significant number of option contracts will expire. This expiry renders them worthless and leads to financial losses for option holders.
Bitcoin Options and Effects on the Market
Bitcoin’s maximum pain point at $68,500 is higher than its current trading levels. This indicates a possibly bullish sentiment among the option traders. It could influence Bitcoin’s price action and investors’ market sentiment.
The Put Call Ratio (PCR) of 0.49 further supports this theory. The PCR is estimated by dividing the total amount of traded put options by the amount of traded call options.
Although the U.S. inflation data favoured the stock market, the crypto market has performed poorly this week. Bitcoin and other top altcoins recorded a decline, although it was more pronounced than the altcoins’ decline.
Furthermore, upcoming news events, such as the Spot Ethereum ETF S-1 approval, are expected at the end of June. This is a vital opportunity for traders to position their trades for a possible rally. However, the massive outflows of $226 million from Spot BTC ETFs likely signal declining investor interest.
Therefore, investing in Bitcoin options demands caution due to price volatility and lower interest from investors.
Crypto Analysts Predict Bitcoin’s Next Possible Moves
In an interesting post, Bitcoin analyst Willy Woo referred to the whale population for Bitcoin and believes the sentiment is bullish. According to Woo, in every past cycle, the FOMO phase of the bull market begins with selling.
He also believes that Bitcoin’s price action will become boring, and the traders who gamble will leave before a price rally. Meanwhile, another top analyst, Ali Charts, focused on Bitcoin miners. He noted that mining costs have soared, and it takes up to $77,000 to mine a single BTC token.
This rise in mining costs has resulted in a capitulation among Bitcoin miners in the past month, so this could also be a factor influencing Bitcoin’s recent performance. In the meantime, investors are showing indecision in the market, hoping to discover Bitcoin’s next price move.
What Next for Bitcoin?
BTC is trading close to the $66,272 support level after facing rejection at $67,511. Secondly, BTC has formed a green candle on the daily chart, but the long lower wick suggests that the sellers are active.
Additionally, the RSI indicator is in the neutral zone with a value of 45.77. Its sideways movement shows indecision from traders in the market today. However, the MACD indicator boldly signals a bearish sentiment for BTC as it drops below its signal line.
Based on that, Bitcoin will likely retrace to the $66,272 price level in the coming days due to the bearish pressure. If this support level holds, buyers can re-enter the market in the coming weeks.
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