Bitcoin

Bitcoin Price Poised For 10% Upswing By The Weekend Amids The Options Expiry! Know-How! 

Written by: Qadir AK

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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Jan 28, 2022

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Highlights

    The most dominant asset has returned to the level that could forbid the further downside risk.

    Exchange reserves, hash rate, and historical trends are optimistic of a 10% upswing in the next couple of days.

The Bitcoin price has finally returned to the level where further downside risk is minimal. The flagship asset appears to conclude the week on a bullish note after strengthening around $36k throughout the week. Especially, the Hash rate, number of longterm holders, exchange reserves, and market trends are likely to flip the bearish divergence amidst the $2 billion worth options expiry set on January 28th. 

Bitcoin Price Thrives To Return $40,000! 

The flagship asset is currently down by 48%, and on a bearish trap for 79 days. While it was under a bearish rule after the May market crash, it has faced a huge build-up of sell-off pressure for over 100 days. In addition, the asset has undergone a 55% correction.

However, the bear session appears to have reached the bottom and bulls are likely to return to the market. In addition, there are certain metrics pointing out to a bullish close by the weekend. If retailers continue to accumulate in the next 24-hours, catalysts such as a number of long-term holders, exchange reserves, and market trends would propel BTC prices beyond $40k

The reports from Glassnode confirm that the balance on exchanges reached two-year lows of $3,508,233. Further, it is also noted that options traders have brought the downside protection aggressively for the month of January as put open interest outstripped call open interest by 30%. 

On the other hand, the Bitcoin hash rate has risen to a new all-time high. Usually, price action follows the hash rate and hence weekend would remain bullish for the flagship asset. If the flagship asset breaks the current local resistance of $36,700, then the above catalysts are likely to propel the price by 10% by the weekend. 

Collectively, it’s been a while since the Bitcoin price has not seen any significant gains. As the bearish session is at the end phase, the asset is likely to commence a bull rally eventually. If the above facts hold true then the flagship asset would commence with a bull cycle. Even technical analysis is indicating that bulls need to break the $37.5k resistance level to achieve a weekly close above $40k

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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