Recently, bitcoin has shown resilience that has surprised many market observers. After a disheartening drop to a 24-hour low of $53,898, bitcoin has broken back above the $56,000 mark, up 1.6% in the past hour.
This rally has been catalyzed by the latest US NFP. report The rising unemployment rate has triggered a surge in purchasing activity, temporarily easing the bearish pressure. However, this recovery may not signal a sustained uptrend, as experts hint at possible further declines.
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bitcoin analysts' predictions: a possible drop to $47,000
Ali, a prominent cryptocurrency analyst, has… twitter.com/ali_charts/status/1809164726770761816?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>voiced Concerns about bitcoin’s current positioning in the market. Despite the recent price recovery, it suggests that bitcoin could drop significantly to around $47,000.
This prediction stems from his analysis of bitcoin’s support levels, which he believes are insufficient to sustain long-term bullish momentum.
According to Ali, for bitcoin to resume its uptrend, it would need to “close and sustain above $61,000,” a scenario that seems increasingly speculative given the current state of the market.
<blockquote class="twitter-tweet”>
twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>#bitcoin
— Ali (@ali_charts) twitter.com/ali_charts/status/1809164726770761816?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>July 5, 2024
Amidst these turbulent market conditions, other financial experts remain cautiously optimistic. Samson Mow, a prominent figure in the cryptocurrency space, x.com/Excellion/status/1809108767465951730″ target=”_blank” rel=”nofollow”>argues that bitcoin's current price levels are the result of artificial market manipulation.
In particular, he calls the drastic price movements “artificial price suppression,” influenced by large bitcoin transfers by government entities during periods of low market liquidity. Mow’s claim suggests that external market forces are at play, which could distort bitcoin’s natural price discovery process.
Increased volatility in the future
Meanwhile, Greek live twitter.com/GreeksLive/status/1809116801319776587?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>Outstanding Emerging volatility in the cryptocurrency market today, focusing on the impending expiration of many bitcoin and ethereum options.
The report detailed that 18,000 btc options and 164,000 ethereum options will expire soon, representing notional values of $1 billion and $470 million, respectively.
This situation is particularly notable due to the skewed bid-ask ratios and defined Maxpain points, suggesting potential price pivots at $61,500 for bitcoin and $3,350 for ethereum.
The start of July brought with it significant market declines, with major cryptocurrencies hitting new monthly lows. The end of the quarterly cycle triggered increased market volatility, providing a strategic window for institutional players to establish positions.
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Furthermore, amid bearish market sentiment, there is a noticeable increase in the implied volatility of bitcoin and ethereum put options, indicating growing caution among traders.
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July 5 Options Data
There are 18,000 btc options about to expire with a Put Call Ratio of 0.65, a Maxpain point of $61,500 and a notional value of $1 billion.
There are 164,000 eth options due to expire with a put/call ratio of 0.36, a maximum pain point of $3,350 and a notional value of $470… image.twitter.com/uAxOO5gDQ8
— Greeks.live (@GreeksLive) twitter.com/GreeksLive/status/1809116801319776587?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>July 5, 2024
Greeks Live further reported that with upcoming ethereum ETF news and attractive end-of-month call option prices, there is a strategic opening for investors looking to capitalize on these market conditions.
Featured image created with DALL-E, chart by TradingView
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