The crypto market cap slashed heavily, recording a plunge of more than 11% compared to the previous day’s close. While the market is within the bearish trend many factors may still drive the BTC price much lower. According to the technicals, major support levels are close to $30,000 which may be fueled by some external factors in the upcoming days.
Bitcoin price slashed and also dragged the entire crypto space towards their respective support levels. The main reason for the slash is said to be the long liquidation and as per the data on CoinGlass, nearly $200 million BTC longs got liquidated in the past 24 hours.
However, compared to the previous liquidations and the impact on the price, the amount of present-day liquidation is comparatively less. However, the upcoming options expiry is expected to have a larger impact on the BTC price.
As per the data on Coinoptionstrack, the present-day put on interest where the traders have the right to sell their options was around 1024. And hence the BTC price plunged nearly 10.47% compared to the previous day’s close, standing at $38,687.81 at the press time. However, the upcoming options expiry on 28th January may have a larger impact on the price as the Put Open Interest stands for nearly 15,625.5.
Also Read : Sell Zone For the BTC Price Spotted, Will This Drag Bitcoin Below $40,000
While the Call Open Interest also stands elevated more than 34,000 which may nullify the bearish trend to some extent. Yet the present day’s Call Open Interest was also around 1252, and despite the fact, the BTC price experienced a significant drop. Yet on 28th, the Call Open Interest is almost double than the Put-Call Interest and hence the drop expected to be large, yet maybe eased to some extent.
Collectively, the bearish trend is expected to hover around the BTC price throughout the month. No doubt minor retracements towards the north are pretty possible, yet they may be only for the short term. And hence the bears appears pretty confident to drag the price close to $30K in the upcoming days.
Source: https://coinpedia.org/bitcoin/bitcoins-100k-dream-is-now-long-dead/