Bitcoin (BTC) once saw its golden days at $60,000 but now the king of the market is struggling with resistance at $40,000. At the time of press, Bitcoin stands at a price level of $38,327. The market crash led to Bitcoin dropping to $32,000 and fear is still widespread in the market even though recovery has started.
The Bitcoin network saw record low activity. The active supply for Bitcoin has declined by 45% hinting investors are still holding on to their BTC. While miners are also showing unwillingness to sale their Bitcoin at the current prices. The king of the market is overall expected to once again reach towards its high of $60k eventually surpassing it but in the short-term window, a fall towards $32k is an immediate fear of investors and traders alike.
On June 4th, 15,530 Bitcoin (BTC) options are set to expire. The options have an aggregate open interest of $575 million. The brutal market crash of Bitcoin had led to a major chunk of buy calls to go underwater.
The Bitcoin market is highly uncertain right now with volatility increasing. This makes the future outlook uncertain too. Although fear seems to dominate the market. The call-to-put ratio of the options stand at 0.84 which means there is 0.84 buy for every 1 sell. The bulls are frightened in the uncertain market but it may be noted that fear presents good buying opportunities. The ratio, while indicates dominance of put options, does not necessarily confirm a bearish scenario when the options expire.
A bearish outcome on Friday as the $575 million Bitcoin options expire may not bode well for the cryptocurrency. Bitcoin is already struggling with bullish momentum. The cryptocurrency could only increase by 1% in the weekly timeframe. The Bollinger bands have expanded indicating and ever-increasing volatility in the market.
