Key Insights:
- If Bitcoin maintains its position above $70,000, a potential 10% surge could propel it to unprecedented heights, near $77,000.
- The imminent expiration of the $15 billion options on Deribit sparks anticipation of significant market movements, potentially impacting BTC and ETH prices.
- Larry Fink highlights the iShares Bitcoin Trust’s unique achievement, amassing over $13.5 billion in just 11 weeks, setting a new ETF record.
Bitcoin’s recent price trajectory has taken the market by storm, reaching new heights just before the anticipated halving event. This surge has led to widespread speculation about the next possible milestones for BTC, with each day potentially setting new records.
Analyst Ali Martinez has recently highlighted a critical development in Bitcoin’s chart. He notes that BTC appears to be breaking out of a bull flag formation on the 4-hour chart, a strong indicator of a continuing uptrend. This pattern typically follows a significant bullish movement, suggesting more gains could be on the horizon.
Martinez suggests that if Bitcoin can sustain a price above $70,000, it might not only hit but potentially exceed an all-time high of $77,000. This analysis aligns with the broader market sentiment, which anticipates Bitcoin could effortlessly climb toward the $80,000 mark if current levels hold. Such a move would represent nearly a 10% increase from its current position, underscoring the significant growth potential still untapped within the cryptocurrency market.
Bitcoin Price Analysis
As of this writing, Bitcoin is trading at $70,620 up by 0.86% in the past 24 hours. Since forming a daily low at $68,380, BTC has been trending steadily, climbing upwards, crossing above the key level of $70k to face resistance at $71,730. The market capitalization has a value of $1.38 trillion, with the trading volume recording an impressive 24% with the current value at $42 billion.
BTC/USD price chart: price chart: CoinMarket Cap
Bitcoin’s price is currently in a consolidation phase, hovering above the crucial $69,000 support level. However, the path to further gains remains contingent on overcoming the significant resistance at $71,500.
Despite showing positive signs, Bitcoin is encountering resistance near the $71,500 mark, hindering its progress toward a sustained uptrend. The cryptocurrency continues to trade above $69,000, maintaining a semblance of bullish momentum.
Recently, Bitcoin made multiple attempts to breach the $71,500 resistance barrier, albeit unsuccessfully. As a result, the digital asset experienced a minor pullback, finding support near $68,400 after testing the $68,800 level.
Presently, Bitcoin is displaying resilience above $69,000, with a notable bullish trend line forming, suggesting underlying support at around $69,120. The immediate hurdle lies at $70,000, with further resistance anticipated at $71,200.
However, the critical resistance zone remains firmly entrenched at $71,500. A clear breakthrough above this level could pave the way for Bitcoin to gather strength and potentially surpass the $72,500 resistance in the near future.
Conversely, failure to surmount the $71,200 resistance may lead to renewed downside pressure. Initial support is expected to be around $69,200, reinforced by the trend above the line. Subsequent support levels sit at $68,400 and $67,500, with a breach below the latter potentially precipitating a descent towards $66,000.
Volatility Looms: Bitcoin and Ether Face Major Options Expiry Worth $15B
Leading crypto options exchange Deribit is gearing up for a significant quarterly expiry of bitcoin (BTC) and ether (ETH) options contracts worth a staggering $15.2 billion. This impending settlement, scheduled for Friday at 08:00 UTC, is expected to impact market dynamics, potentially injecting bullish price volatility.
According to Luuk Strijers, Chief Commercial Officer at Deribit, the market braces for notable movements as many options are poised to expire in-the-money (ITM), implying potential upward pressure or increased volatility. Bitcoin and Ether options contracts valued at $9.5 billion and $5.7 billion, respectively, are set to be settled,
Deribit, dominating the crypto options exchange sector with over 85% market share, is about to witness one of its largest expiries to date. The impending settlement represents 40% and 43% of Bitcoin and Ether’s total notional open interest across maturities.
Strijers highlights the significance of ITM expiries, stating, “Higher levels of ITM expiries might lead to potential upward pressure or volatility in the underlying.”
The maximum pain points for Bitcoin and Ether’s quarterly expiry stand at $50,000 and $2,600, respectively. This concept suggests that option sellers aim to pin prices near these points to inflict maximum loss on buyers. Notably, during the last bull market, both Bitcoin and Ether corrected lower towards their respective max pain points before resuming their upward trajectory post-expiry.
Strijers suggests a similar scenario this time, noting, “The market could see upward pressure as the expiry removes the lower max pain magnet.”
Recent Updates From the Bitcoin Spot ETFs
BlackRock’s iShares Bitcoin Trust (IBIT) has once again made headlines with a staggering $320 million investment surge, showcasing its dominant position in the cryptocurrency investment sphere.
Larry Fink, CEO of BlackRock, has lauded the trust’s performance, recognizing it as the most rapidly expanding ETF to date. “Nothing has gained assets as fast as IBIT in the history of ETFs,” Fink noted during his conversation with Fox Business, highlighting the trust’s unexpected success since its inception.
The trust’s ability to draw in $13.5 billion in a mere 11 weeks since its launch speaks volumes about its appeal among investors. Moreover, a single day saw the trust receiving an unprecedented $849 million, with daily averages exceeding $260 million. This influx not only underlines the trust’s growth but also its role in bolstering the market by enhancing liquidity and transparency for Bitcoin investments.
Presently, IBIT boasts an impressive $17.1 billion in Bitcoin holdings, as reported by BitMEX Research. The trust’s rapid growth trajectory is noteworthy; it reached the $10 billion milestone in just two months, a feat that took the first gold ETF two years to achieve. Among the approved ETFs, IBIT now ranks as the second largest in terms of Bitcoin holdings, only trailing behind the Grayscale Bitcoin Trust, which holds $23.6 billion in BTC.
On March 27, the Bitcoin spot ETFs market saw a significant influx of $243 million in total net investments, according to data from SoSoValue. Despite the broader market enthusiasm, the Grayscale ETF (GBTC) reported a substantial outflow of $299 million on the same day.
Conversely, BlackRock’s ETF, IBIT, demonstrated robust investor confidence with a net inflow of $323 million. Similarly, the collaborative effort between Ark Invest and 21Shares, the ARKB ETF, also recorded a positive movement with $200 million in net inflows. This activity has pushed the historical cumulative net inflows for Bitcoin spot ETFs to an impressive $11.94 billion
