Analysts expect Bitcoin to stabilize around $50k, ahead of Fridays options expiration

Analysts expect Bitcoin to stabilize around $50k, ahead of Fridays options expiration
10 months ago
3 mins read

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.

Bitcoin seven-day price chart. Source: CoinMarketCap.com

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. 

Bloomberg, Coinshares, data. Source: Medium.com

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.

Global crypto market seven-day price chart. Source: CoinMarketCap.com

Meanwhile, Cardano (ADA) is currently the third-largest cryptocurrency by market capitalization as its price surged to an all-time high, surpassing Binance’s native token (BNB). 

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.

What we like:

Highly credible broker

Perfect for beginners

Protected by insurance

80+ cryptocurrencies to invest

Latest News

Join us on Twitter or Telegram

Or follow us on Flipboard Flipboard

Like the article? Vote up or share on your social media

Recommended content

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s

Jordan Major

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.