Inflection point for BTC price. We're right at a big sell block which runs from $29.3k up to $31.8k.
The question we asked earlier in the week folling the ETF rumour 'fakout' is did that wick clear some of the overhead sell pressure ahead of BTC's next pump? Well we are about to find out.
Long target is $31,893 - very srong resistance that is unlikely to break without significant volume increases (if this does fall I'd think that we have some movement behind the scenes relating to ETF's or regulation). Conversely we have to consider the possibility of another manipulated market pump, if we see a solid rejection support lines up at $28,131 and $27,474 which would make good incramental short targets.
The current move is likely caused by options expiring. Around 23,000 Bitcoin options contracts will expire with a value of around $640 million.
The put/call ratio for today’s Bitcoin options is 0.82, meaning there are slightly more sellers of long contracts than shorts. Hence the pump.
Max pain point for today’s batch of Bitcoin options is $28,000. This is the level with the most open contracts and the level where most losses occur when the contracts expire.
It can often act as a magnet for price further confirming the support based short targets we discussed earlier. Wait for confirmation of a reversal though becasue overall this expiry is bullish with whale 'call' (long) positions increasing.
This set up should, (should!) see BTC test the top of its range (
31K
) but the recent volatility has shown how unpredictable a low volume market can be, hence being ready with targets to go long or short.
The question we asked earlier in the week folling the ETF rumour 'fakout' is did that wick clear some of the overhead sell pressure ahead of BTC's next pump? Well we are about to find out.
Long target is $31,893 - very srong resistance that is unlikely to break without significant volume increases (if this does fall I'd think that we have some movement behind the scenes relating to ETF's or regulation). Conversely we have to consider the possibility of another manipulated market pump, if we see a solid rejection support lines up at $28,131 and $27,474 which would make good incramental short targets.
The current move is likely caused by options expiring. Around 23,000 Bitcoin options contracts will expire with a value of around $640 million.
The put/call ratio for today’s Bitcoin options is 0.82, meaning there are slightly more sellers of long contracts than shorts. Hence the pump.
Max pain point for today’s batch of Bitcoin options is $28,000. This is the level with the most open contracts and the level where most losses occur when the contracts expire.
It can often act as a magnet for price further confirming the support based short targets we discussed earlier. Wait for confirmation of a reversal though becasue overall this expiry is bullish with whale 'call' (long) positions increasing.
This set up should, (should!) see BTC test the top of its range (
31K
) but the recent volatility has shown how unpredictable a low volume market can be, hence being ready with targets to go long or short.