Bitcoin

The upcoming crypto options expiry is threatening to add a significant amount of Bitcoin sell pressure that could take the price below another key support level.
Over $1.4 billion worth of Bitcoin (<a href="https://cointelegraph.com/bitcoin-price" text="null" title="null">BTC</a>) options are set to expire on Aug. 16 at 8:00 am UTC, <a href="https://x.com/DeribitExchange/status/1823991095182622941/photo/1" text="null" title="null">according</a> to Deribit. This sets Bitcoin’s “max pain point” to $60,000, which indicates the price at which most options contracts would expire worthless.
However, according to Cointelegraph data, Bitcoin fell over 3.6% during the past 24 hours to trade at $58,101 as of 8:35 am.
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 <img alt="Bitcoin sell pressure may break $56K support as options expiry looms" name="" src="https://s3.cointelegraph.com/uploads/2024-08/Screenshot%202024-08-15%20113540">
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 BTC/USD, 1-day chart. Source: Cointelegraph
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This means that the $1.4 billion worth of options will expire and introduce more downside volatility unless Bitcoin can stage a recovery above $60,000. Periods close to options expiry generally bring more price volatility into the crypto market.
Related: <a href="https://cointelegraph.com/news/bitcoin-s-bull-rally-will-continue-another-350-days-bybit" text="null" title="null">Bitcoin’s bull rally will continue another 350 days: Bybit</a>
<h2 id="could-bitcoin-etfs-help-btc-price-recover">Could Bitcoin ETFs help BTC price recover?</h2>
Inflows into US spot Bitcoin exchange-traded funds (ETFs) were positive for two consecutive days but turned negative again on Aug. 14, with net outflows exceeding $81 million, according to <a href="https://farside.co.uk/btc/" text="null" title="null">data</a> from Farside Investors.
<figure>
 <img alt="Bitcoin sell pressure may break $56K support as options expiry looms" name="" src="https://s3.cointelegraph.com/uploads/2024-08/Screenshot%202024-08-15%20115613">
 <figcaption style="text-align: center;">
 Bitcoin ETF Flow (USD, million). Source: Farside Investors
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However, the favorable Consumer Price Index (CPI) reading could catalyze more inflows into the Bitcoin ETFs, according to Bitfinex analysts, who told Cointelegraph:
<blockquote>
 “The favorable CPI data is expected to catalyze further inflows. Investors are likely positioning themselves to benefit from the expected rate cut and the potential for a broader market rally. As a result, we might observe continued and possibly accelerated inflows into these ETFs, reflecting a shift in sentiment toward risk-on assets.”
</blockquote>
The US Bureau of Labor Statistics (BLS) reported July Consumer Price Index (CPI) data on Aug. 14, showing <a href="https://cointelegraph.com/news/low-cpi-print-fodder-bitcoin-retest-all-time-highs-grayscale-research-head#:~:text=COINTELEGRAPH%20IN%20YOUR%20SOCIAL%20FEED&amp;text=The%20US%20Bureau%20of%20Labor,reducing%20rates,%E2%80%9D%20Pandl%20said." text="null" title="null">annualized price increases for consumers of 2.9%</a>, which marks the slowest rate increase since 2021.
<a href="https://cointelegraph.com/explained/what-are-etf-fund-flows-and-why-do-they-matter" text="null" title="null">ETF inflows</a> can significantly contribute to a cryptocurrency’s price appreciation. For Bitcoin, ETFs accounted for about <a href="https://cointelegraph.com/news/bitcoin-etfs-about-75-new-investment" text="null" title="null">75% of new investment</a> in the cryptocurrency by Feb. 15 as it surpassed the $50,000 mark.
Related: <a href="https://cointelegraph.com/news/bitcoin-price-drops-below-59k-institutional-stablecoin-pause" text="null" title="null">Bitcoin price drops below $59K as institutions stop buying stablecoins</a>
<h3 id="could-bitcoin-price-dip-below-56-000">Could Bitcoin price dip below $56,000?</h3>
Bitcoin could dip below $56,000 before amassing more upside momentum.
Based on the market sentiment around Bitcoin whales, or large holders, BTC is likely headed to the $56,000 support, according to an Aug. 14 X <a href="https://x.com/TradeConfident/status/1823732080569934174/photo/1" text="null" title="null">post</a> by Trade Confident crypto research platform, that wrote:
<blockquote>
 “Based on current market indicators, we are looking at $56k for $ BTC’s next move!”
</blockquote>
<figure>
 <img alt="Bitcoin sell pressure may break $56K support as options expiry looms" name="" src="https://s3.cointelegraph.com/uploads/2024-08/GU8yQB7a4AI45-v">
 <figcaption style="text-align: center;">
 Bitcoin whale smart money, sentiment indicator. Source: Trade Confident
 </figcaption>
</figure>
The $56,000 mark acts as a potential demand zone for Bitcoin, according to pseudonymous trader Crypto Pump Analytics, who <a href="https://x.com/C_PumpAnalytics/status/1823956198393250144/photo/1" text="null" title="null">wrote</a> in an Aug. 15 X post:
<blockquote>
 “Now the price of bitcoin is expected to reach the next demand zone of $56k. When bitcoin price comes near the $56k zone we will try long.”
</blockquote>
Magazine: <a href="https://cointelegraph.com/magazine/china-crypto-ban-investors/" text="null" title="null">How Chinese traders and miners get around China’s crypto ban</a>

Bitcoin sell pressure may break $56K support as options expiry looms

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Cointelegraph

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