June brings good news…and bad news.
Just halfway through June and Bitcoin has been hit with a series of conflicting news that has tightened the grip of bulls and bears simultaneously.
News of new US CPI report, BlackRock filing for a Bitcoin ETF, and the SEC shake up of top crypto exchanges have rocked the pioneer cryptocurrency.
Bitcoin current outlook
Bitcoin rose above $25,000 on Friday as investors moved to buy the dip. Bulls shrugged off the series of unfortunate and gloomy events that have rocked BTC since the start of the month.
On the chart, the coin made a false breakout of the local support at $25,210. If the bulls can hold on to the gain, and the green candle closes near the $25,678 resistance level, the market may expect a breakout.
However, this is hard to call. The coin has not accumulated enough momentum to push it into an uptrend.
At the time of writing, BTC traded at $26,349, a 3.03% gain over the last 24 hours.
Van de Poppe emphasized that it is essential to maintain the support level near $24,500.
Read more: Bitcoin drops following Fed’s decision to hold rates steady
Bitcoin bulls hope on recovery
Bitcoin bulls are hoping that BTC recovers to $26,500 by June 25 to avoid a $100M loss. Many Bitcoin options contracts are set to expire on that date. If Bitcoin fails to reach that price, the contract will expire worthless.
Since bulls focused their bets above $27,000, the real open interest for the options expiry will be smaller.
On June 16, just $27 million worth of these call (purchase) options will be available, though, assuming Bitcoin’s price stays around $26,000.
If the price ends up between $24k and $25k, bears will be in control and take a profit of $145M. If the price is between $25k and $26,500, the result will favour put (sell) instruments by $100M. If the price falls between $26,500 and $27,000, the result will be balanced between call and put instruments.
Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
