Analysts predict that Bitcoin will stabilize this week after falling below $50,000, in anticipation of Friday’s options expiry date and the Federal Reserve’s annual economic policy symposium.
On Friday, around 25% of Bitcoin options open interest will expire while the $50,000 strike price has the highest concentration of open interest and is also a major technical resistance level.
Bitcoin is currently trading at $49,776, down 0.84% in the last 24 hours and 8.23% in the last week, with a 43.4% market dominance, according to CoinMarketCap statistics.
Prominent crypto trading analysts Michaël van de Poppe believes the asset still has more time fluctuating in the upper $45,000- $49,000 level before starting its subsequent rise: “This scenario still stands, unless #Bitcoin breaks above $51K.”
At the same time, lead insights analyst Will Clemente stated. “29,696 BTC moved onto exchanges in the last week. Not a trend we want to see continue.”
This might indicate that traders are transferring their Bitcoin to exchanges in anticipation of a sell-off if Bitcoin can’t sustain the important $50,000 level following the options.
The global crypto market
After six weeks of outflows, the first inflows of $21 million were recorded in the week ending August 20, 2021.
Since mid-May, the total assets under management (AuM) had hit a new high of $57.3 billion. In particular, Solana (SOL), a rival to Ethereum (ETH) that offers a customizable ecosystem and quicker transaction resolution, received the greatest inflows of any digital asset last week totaling US$7.1m, according to the report.
The global crypto market cap is now $2.16 trillion, up 0.73% from the previous day.
Over the previous 24 hours, there has been a rise of 7.56% in the overall cryptocurrency market volume to $113.58 billion. There is currently $15.22 billion in DeFi, representing 13.40% of the total 24-hour volume in crypto.
Van de Poppe also tweeted:
“The fact that I’m seeing people predict $ADA to $100, and $ADA to flip $ETH. That fact. Shows FOMO (Fear of missing out) to me.”
In his chart analysis, he revealed: “Cardano going towards $3.50 as the next level. However, my interest (daytrade) is at $2.45. Further; looking for swings at the lower bounds of $2 if this one corrects significantly.No buying interest here.”
Due to a gain of more than 13,000% since the beginning of the year, Cardano is presently trading at record prices.
At the current price of $2.92, Cardano has a market worth of $93.7 billion according to CoinMarketCap. In the past week, its price has increased by a staggering 40.8%.
Its recent price hike coincides with the announcement of the forthcoming ‘Alonzo’ upgrade, which would bring smart contracts to the blockchain with the September release.