what is the next move in BTC?
Hello Everyone,
Today we saw the big dump on the charts. People tend to believe in China fud but i don't. Today Deribit's options expired which was 2.7 billion usds worth. Let's analyse it deeper.
As you all know exchanges and funds gather btc from investors to give interest at a specific date via put/call options. When the option due date is on the way, exchanges and funds try to keep the price as close as the price in beginning to cover their positions. But once the locks released, people tend to sell it. Why? Because many investors borrowed loans to gather the amount to invest. They need to pay the loans when their investments get free. The china fud that everyone is talking about is a news from couple of weeks ago. So it is not new.
As a result bitcoin crashed the market with decreasing dominance we watched the total and total2 went down too fast. On the chart i specified the important levels for now. A 4h close below 41494 may possibly lead the way to 37500 support which i do not expect at the moment. On the other hand entering a long position from these levels are risky because the market is unstable at the moment. As long as btc trades below 43176 i will keep my neutral position. After it achieve to close 4h above that level i might open a long position targeting 45k at least and 46-47 k levels possibly with a stop below 4h close at 42K.
Good luck, and stay safe.
Today we saw the big dump on the charts. People tend to believe in China fud but i don't. Today Deribit's options expired which was 2.7 billion usds worth. Let's analyse it deeper.
As you all know exchanges and funds gather btc from investors to give interest at a specific date via put/call options. When the option due date is on the way, exchanges and funds try to keep the price as close as the price in beginning to cover their positions. But once the locks released, people tend to sell it. Why? Because many investors borrowed loans to gather the amount to invest. They need to pay the loans when their investments get free. The china fud that everyone is talking about is a news from couple of weeks ago. So it is not new.
As a result bitcoin crashed the market with decreasing dominance we watched the total and total2 went down too fast. On the chart i specified the important levels for now. A 4h close below 41494 may possibly lead the way to 37500 support which i do not expect at the moment. On the other hand entering a long position from these levels are risky because the market is unstable at the moment. As long as btc trades below 43176 i will keep my neutral position. After it achieve to close 4h above that level i might open a long position targeting 45k at least and 46-47 k levels possibly with a stop below 4h close at 42K.
Good luck, and stay safe.