- Monday morning saw Bitcoin flirting with the $70,000 barrier. Bitfinex experts then cautioned that the rise might not last long because of a big options expiry that was coming up.
The monthly expiry of over $2.2 billion is scheduled to take place on August 2, and Bitfinex analysts forecast in a note that they foresee potential further downward pressure on the price of Bitcoin Bitcoin btc-4.57% Bitcoin.
They speculate that this development might force Bitcoin to stagnate or possibly retreat a little from the resistance area between $68,000 and $69,000. The analysts point out that leveraged long holdings are currently more significant than spot market activity, notwithstanding the possibility of a drop.
According to Bitfinex, directional trades, especially those involving leverage, should be avoided while the market is in a strong higher timeframe uptrend since a short-term price decline or range is expected.
After briefly touching $70,000 on Monday morning—a level not seen since June 7—Bitcoin lost all of its momentum and dropped below $67,000 during the afternoon trading session.
Broader macroeconomic context
The economic prognosis was characterized as cautiously optimistic by Bitfinex analysts with respect to the overall macroeconomic climate. They emphasized how existing home sales are impacted by higher-than-expected median house prices, which means the housing sector continues to be a growth drag.
As crypto.news has previously noted, July has typically been a profitable month for Bitcoin. The cryptocurrency set a new record this year by rising over 15% in the last 30 days and seeing inflows of over $19 billion year to date. According to CoinShares data, between July 22 and July 26, around $520 million in capital was invested in Bitcoin products, exceeding the $3.6 billion milestone for the year.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
