- About 677,000 addresses bought 440,097 Bitcoin near the $53,270 level, which acts as a crucial level in the battle of the bulls against the bears.
- Experts anticipate a spike in the Bitcoin price after a record $6 billion in options expire today.
Still above the critical support level after a week with a sharp drop, the Bitcoin price is currently posting slight gains. At the time of writing, BTC was trading at $53,005, with a gain of 4% in the 24 hours and an 8.3% loss in the last 7 days.
As reported yesterday, today could be the big D-Day. There is much anticipation in the market for the expiration of an estimated $6 billion in bitcoin options. Some analysts believe this will be extremely bullish for the Bitcoin price. The last time $4 billion worth of options expired, the BTC price received a significant boost, according to analyst William Clemente.
A record amount of #Bitcoin Options expire this Friday. ($6B)
Previous record was at the end of January ($4B), price went up 80% after. pic.twitter.com/bzoNHwUPtJ
— William Clemente III (@WClementeIII) March 23, 2021
A report from IntoTheBlock calls the recent days’ price action a battle between bears and bulls. The research firm believes that the option expiration brought a lot of speculation to the market. According to the metric In/Out of the Money Around Price (IOMAP) about 677,000 BTC addresses bought close to $53,000, making it currently a decisive area.
If the BTC price can sustainably regain this level, the bulls could win a big victory. However, if BTC trends down and breaks this level again, the price could fall to $48,000. Here, there is a “similar” concentration of 639,000 addresses that have bought about 348,000 BTC.
In support of the above, trader Michaël van de Poppe believes that the “buy the rumor, sell the news” effect applies in this case. He added that trading in such contracts has already taken place during the week and that the price will manage to stabilize in the coming days.
Don’t focus too much on specific events, the data and price analysis gives you enough to work with rather than focusing on those news-related events, that’s usually just noise.
BTC price may have bottomed, after the event that has caused volatility has passed. As a support zone, van de Poppe has demarcated the area between $49,500 and $51,000. However, in the days ahead, BTC should return to its previous support-turned-resistance zone near $54,000 to $56,200 to resume upward momentum.
Bitcoin on-chain indicators show strength
Continuing with IntotheBlock’s report, it is bullish for BTC that the cryptocurrency’s holders have seen an increase in the last year. Data indicates that these stand at about 2.84 million, according to the firm’s hodlers indicator.
As can be seen in the graph, this metric has been “continuously” growing. Bitcoin addresses stand at an all-time high of 21.55 million with a majority tendency to hold their coins, as shown by the UTXO age metric. The firm stated:
When long-term UTXOs (marked in green to blue waves) are decreasing it points to older coins will be sold for profit, suggesting an end to the bull cycle. But that doesn’t seem to be the case, as investors are holding to their BTC assets.
The report concludes by stating that investors are showing confidence in Bitcoin’s breakout to its current levels. Regardless of price action, the cryptocurrency is “looking strong” with transaction volume on the rise over the last year which IntotheBlock interprets as another sign of confidence.
Institutional adoption has been key in that regard. As noted by analyst Willy Woo the NZ KiwiSaver pension fund has reported buying Bitcoin in the late 2020s. As a result, the fund’s performance has seen a significant increase.
NZ KiwiSaver pension fund, Growth Strategy.
What's with the green boner?
— Willy Woo (@woonomic) March 26, 2021