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BTC Recovery Runs Into Resistance and Could Dive Under $7,700

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BTC price bottomed at $8,899 on June 25 and then recovered to $9,170 by the time of writing. While the crucial $9K support remains unbroken, the flagship cryptocurrency has been fluctuating in a tight range for the last two weeks now as it struggles to clear resistance at $9,200.

Looking ahead, the price is likely to consolidate above $9,200, with an initial resistance forming near the $9,330 level. 

Bitcoin Options are Expiring Today 

The BTC exchange rate today fell to as low as of $9,076, which represents a 7% drop from this week’s high. 

The plunge appeared ahead of the expiry of about 114,700 BTC options contracts with an estimated value of more than $1 billion across a number of derivative exchanges. 

Observers were anticipating stormy price moves as options traders attempt to move spot BTC rates in the direction of their options strike price.

Nevertheless, data on Skew showed that a majority of call options targeted $10K and $11K as their strike price while those with put options expected spot price to drop as low as $8K.

That said, it looks likely that Bitcoin will continue trending sideways after the options expiry. Moreover, the event is expected to trigger massive volatility as it is the highest expiration on record. 

PlusToken Ponzi Scheme Could Affect BTC price

BTC could be gearing up for a major sell-off as a multi-billion scam dumps a huge number of stolen ETH and BTC tokens onto the market. 

Currently, many traders are extremely concerned about a recent 22,000 BTC transaction that was made by the culprits of the infamous PlusToken Ponzi scheme. 

The last time the scammers moved, such a substantial number of BTC coins were back on Feb 11 of this year, during which about 12,000 BTC were transferred to an unknown address linked to mixer deposits.

Following that huge transaction, BTC peaked at a high of $10,500 and entered a downtrend that saw its price plunged by almost 70%.

And this caught the attention of prominent on-chain data analyst Ergo, who tweeted that there appears to be a strong correlation between the price of Bitcoin and PlusToken’s dumping of coins.

That’s why the head of DTC Capital, Spencer Noon, argues that this latest transaction by the scam masterminds could lead to a catastrophic market crash. Furthermore, on-chain metrics support the idea the flagship cryptocurrency prepares for a significant downward impulse. 

For example, the proportion of active coins is presently decreasing, while BTC prices move slightly within a tight trading range. Under such conditions, the downswing could trigger a sell-off that pushes BTC to $7,700 or lower upon the breakout point. 

Wayne Jones
Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, I cover trendy issues on digital currencies.

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