- Bitcoin price fights to stay above the $56,000 shirt-term support; bulls look toward $60,000.
- Bears likely to have their way amid the incoming options expiry as Bitcoin risks plunging under $50,000.
Bitcoin has assumed consolidation after stepping marginally above $56,000. The flagship cryptocurrency had experienced a 74% growth in three months before the April 18 declines to $51,000. Bitcoin had also hit a new all-time high of around $65,000 amid the hype of Coinbase listing on Nasdaq. However, as options expire on Friday, the price remains vulnerable to losses while bulls focus on reclaiming the ground above $60,000.
About 27,320 Bitcoin contracts will expire on April 23, with a total value of approximately $1.5 billion ($56,000 exchange rate). At the moment, bears and bulls appear balanced mainly due to the call (buy) options averaging 45% of the open interest.
It is essential to keep in mind that neutral-to-bearish options make up the chunk of the contracts (19,930 BTC). Currently, the open interest holds at $1.13 billion, which accords bears a $450 million advantage. The recent crash from $64,000 liquidated most of the bulls and has left only 3,000 BTC call options under $58,000.
The four-hour chart shows Bitcoin trading within the confines of the short-term symmetrical triangle. This pattern does not have an exclusive bearish or bullish bias, adding credence to the dilemma. A break above the triangle’s upper trend line will likely send Bitcoin toward $60,000.
BTC/USD four-hour chart
On the downside, if support at $56,000 fails to hold and BTC starts to lose ground toward $55,000, declines are likely to increase toward $50,000. Note that bearish input from the put (sell) options) may add overhead pressure, forcing Bitcoin to seek refuge under $50,000.
Bitcoin intraday levels
Spot rate: $55,755
Support: $55,000 and $52,500
Resistance: $57,500 and $60,000
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