Bitcoin has been repeatedly posting higher lows for the last eight weeks, but this time- the cryptocurrency has not been able to go beyond the resistance zone of $24,000. This is exactly why the BTC options worth $475 are going to expire on the 12th of August- bringing with them a major opportunity for the market bulls to pull things back.
When one considers the current regulatory pressures that are in play, there seems to be a rational explanation for avoiding all the bullish bets, especially after the US Securities and Exchange Commission recently pressed several charges against a former manager of Coinbase for illegally trading in securities on the 21st of July.
Bitcoin Could Be Shaking Things Up
Bitcoin and the entire cryptocurrency market have already been dealing with the additional impact of Terra imploding. There have been consequences to the bankruptcy of crypto venture capital firm Three Arrows Capital– which definitely weighs upon the investors. The latest victim of this would be the crypto platform for lending- called Hodlnaut- which recently suspended all of its user withdrawals on the 8th of August. For this exact reason, most of the traders seem to be holding back their bets for over a sum of $24,000, but the events taking place beyond the crypto market could definitely impact the investors and their expectations negatively.
The failure of Bitcoin to break under a sum of $21,000 on the 27th of July did surprise the market bears simply because only 8% of the put options for the 12th of August have been placed above a sum of $23,000. Thus, the bulls of BTC are quite well positioned for the weekly options expiry worth $475 million. If the price of the cryptocurrency were to remain above a sum of $23,000 on the 12th of August, only $16 million worth of these put options will be available to the public.