Last week, Bitcoin attempted to smash the declining trend with an initial effort on June 16 but failed to clear through the $22,600 barrier. The next try at $21,400 on June 21 was met with an 8% pullback.
Following two unsuccessful breakthroughs, the price is currently trading beneath $20,000, raising the question- ‘Was $17,600 the bottom?’
The more Bitcoin tries to breach out of this negative pattern, the tighter the resistance line gets, and traders are keeping a careful eye on the movement. For the situation to improve, bulls must demonstrate power at this week’s $2.25 billion monthly options maturity.
Potential barriers weighed heavily on crypto markets as European Central Bank (ECB) president Christine Lagard expressed her belief in the importance of stricter regulation.
Bitcoin miners are being compelled to liquidate their BTC holdings, putting additional downward pressure on the BTC market. According to Arcane Research, publicly-traded Bitcoin mining businesses liquidated 100% of their BTC output in May versus the average of 20% to 40% in prior months.
Miners together own 800,000 BTC, raising fears about a potential sell-off. In addition, the Bitcoin price drop has diminished miners’ profits since manufacturing costs have sometimes surpassed their margins.
The June 24 options expiration will be particularly concerning for traders since Bitcoin bears are expected to strike gold by depressing BTC under $20,000.
What’s In Store For Bitcoin On June 24th?
These investors were utterly wrong when Bitcoin fell under $28,000 on June 12, yet their optimistic predictions for the monthly options expiry exceed $60,000.
The 1.70 call-to-put ratio demonstrates the $1.41 billion call (buy) open interest’s superiority over the $830 million puts (sell) options. However, once Bitcoin falls below $20,000, the most optimistic options can become useless.
If somehow the Bitcoin price stays below $21,000 at 8:00 a.m. UTC on June 24, just 2% of these call options will be accessible. This gap occurs since the right to purchase Bitcoin for $21,000 is useless if BTC trades within that amount at the time of expiry.
How Low Will BTC Price Drop?
Bitcoin bearish must drive the market under $20,000 on June 24 in order to profit $620 million. The bulls, on the other hand, need a surge of over $22,000 to lessen the effect by $140 million.
Bitcoin bulls liquidated $500 million in extreme long bets on June 12 and 13, so they will have very little margin to force the price towards North. Given this information, bears have a better chance of anchoring BTC under $22,000 before the June 24 options expiry.