- BTC’s hold on $60,000 is at stake as $6.6 billion options expire.
- However, QCP Capital was confident that the level would be defended.
The persistent negative market sentiment in June ultimately stuck Bitcoin [BTC] back to the low of $60,000. This was the fifth time BTC has retested the level, and it has fallen even lower to $56K and $58K on some occasions.
However, on June 28, more than $10 billion worth of crypto options will expire, of which approximately $6.6 billion will expire are BTC options. So, more volatility was expected and BTC’s low support might break.
Source: Coinglass
The maximum pain for BTC options was $57,000, which is typically the level of least financial risk for market markers (option sellers) before options expiration.
Put another way, market makers tend to push prices to the maximum pain level to reduce losses.
BTC prices always tend to move towards this level, but other factors were also at play. So, based on the options market, BTC could fall below $60,000.
BTC to Defend $60K?
However, despite the expected volatility, crypto trading and hedge firm QCP Capital are lagging behind to maintain that BTC would defend the $60,000 support.
‘We think the 60k support will be defended’
The company cited easing selling pressure from the German government and improved the pace of inflows into US BTC ETFs. Per Soso value factsBTC ETFs broke the seven-day streak of outflows on Tuesday, recording positive net flows over the past three days.
However, the above-mentioned optimistic outlook could also be compromised by short-term BTC investors who hold BTC at a loss and may panic sell if BTC falls further.
A pseudonymous CryptoQuant analyst noted that BTC had fallen below the near-term realized price of $62.6K, which could increase selling pressure.
“If the price doesn’t break above the s-th price soon, it will likely become a resistance level for the price in the future.”
Source: CryptoQuant
On the other hand, AMBCrypto analysis of the liquidation heatmap showed major liquidity clusters (highlighted in orange) on either side of the price action. But liquidity was slightly skewed towards $60.2K and $60.4K.
Source: Coinglass
At the top end of the price action, a key cluster was located at $62.6K, coinciding with the near-term price realization. Price action also tends to move towards areas of high liquidity.
Collectively, the data suggested that despite possible market manipulation towards $57K, BTC could recover $60K and retest $62.6K.