The prized, and often volatile, cryptocurrency Bitcoin has recently shown an unexpected level of resistance, riding through market forces with remarkable buoyancy. Despite plummeting to a 24-hour low of $53,898, the digital gold has impressively climbed back up the ladder, making quick strides to cross the $56,000 milestone, registering a 1.6% ascent in merely an hour.
This upward rebound can partly be attributed to the latest NFP (Non-Farm Payroll) report from the U.S. that has cranked up the unemployment numbers, sparking investors’ interest and, consequently, a buying spree. Such activity provided temporary relief from the intense bearish pressure that Bitcoin faced. However, financial specialists warn that this rally might just be a temporary wave, and a slump might be looming large, awaiting the bogey coin.
A much-listened-to voice in the crypto world, analyst Ali belongs to this group of market watchers which remains circumspect about Bitcoin’s current market standing. While acknowledging the cryptocurrency’s determination to bounce back, Ali raises the alarm that Bitcoin may still take a disappointingly expensive plunge to around $47,000.
Ali’s skepticism revolves around his study of Bitcoin’s reinforcement levels, which, according to him, are less than optimal to endure an extended bullish surge. He maintains that for Bitcoin to reactivate its bull-run sequence, it needs to “close and hold above $61,000,” a conjecture that appears increasingly hypothetical under the present market circumstances.
In contrast, Samson Mow, a reputed figure in the digital currency universe, perceives the current Bitcoin price points as an outcome of engineered market manipulation. Citing significant Bitcoin transactions by government bodies during periods of reduced market liquidity, as examples of this manipulation, Mow sees these exercises of power responsible for the “artificial price suppression.” He argues that such external influences could distort the inherent price discovery mechanism of Bitcoin.
Meanwhile, on a different note, Greek Live identified increased turbulence in the cryptocurrency market earlier today. The issue at hand was the impending maturity of numerous Bitcoin and Ethereum options. The report revealed that 18,000 Bitcoin options and 164,000 Ethereum options, amounting to notional values of $1 billion and $470 million respectively, are on the verge of expiry.
One thing to note about this situation is the inclination in the Put-Call Ratios and articulate Max Pain points. They signify probable price anchor points at $61,500 for Bitcoin and $3,350 for Ethereum. July has ushered in significant market downturns, punching lower lows across dominant cryptocurrencies. The culmination of the quarterly cycle ignited increased market volatility, presenting a strategic opportunity for institutional participants to secure their positions.
Amidst this bearish market outlook, a pronounced surge in the implied volatility of put options for Bitcoin and Ethereum has been observed, reflecting a heightened sense of caution among traders.
Further, Greeks Live also mentioned intriguing possibilities for investors, stating that given the upcoming information on Ethereum ETFs and the favorable pricing of end-of-the-month call options, those eager to profit could find a strategic entry point within these unstable market conditions.
