Bitcoin price in dilemma ahead of Friday options expiry, will bears have their way?

Published April 21, 2021 | Updated April 21, 2021

Bitcoin price in dilemma ahead of Friday options expiry, will bears have their way?

  • Bitcoin price fights to stay above the $56,000 shirt-term support; bulls look toward $60,000.
  • Bears likely to have their way amid the incoming options expiry as Bitcoin risks plunging under $50,000.

Bitcoin has assumed consolidation after stepping marginally above $56,000. The flagship cryptocurrency had experienced a 74% growth in three months before the April 18 declines to $51,000. Bitcoin had also hit a new all-time high of around $65,000 amid the hype of Coinbase listing on Nasdaq. However, as options expire on Friday, the price remains vulnerable to losses while bulls focus on reclaiming the ground above $60,000.

Bitcoin options expiry could determine price direction

About 27,320 Bitcoin contracts will expire on April 23, with a total value of approximately $1.5 billion ($56,000 exchange rate). At the moment, bears and bulls appear balanced mainly due to the call (buy) options averaging 45% of the open interest.

It is essential to keep in mind that neutral-to-bearish options make up the chunk of the contracts (19,930 BTC). Currently, the open interest holds at $1.13 billion, which accords bears a $450 million advantage. The recent crash from $64,000 liquidated most of the bulls and has left only 3,000 BTC call options under $58,000.

The four-hour chart shows Bitcoin trading within the confines of the short-term symmetrical triangle. This pattern does not have an exclusive bearish or bullish bias, adding credence to the dilemma. A break above the triangle’s upper trend line will likely send Bitcoin toward $60,000.

BTC/USD four-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

On the downside, if support at $56,000 fails to hold and BTC starts to lose ground toward $55,000, declines are likely to increase toward $50,000. Note that bearish input from the put (sell) options) may add overhead pressure, forcing Bitcoin to seek refuge under $50,000.

Bitcoin intraday levels

Spot rate: $55,755

Trend: Bearish

Volatility: High

Support: $55,000 and $52,500

Resistance: $57,500 and $60,000

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
John Isige 939 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
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