Key Points
- Bitcoin’s surge to the $70,000 mark could be temporary due to an upcoming significant options expiry, according to Bitfinex analysts.
- Despite a positive July for Bitcoin, the broader macroeconomic environment remains cautiously optimistic.
As Bitcoin neared the $70,000 mark on Monday, Bitfinex analysts issued a warning. They hinted that the surge may not last long due to an upcoming significant options expiry.
Bitfinex’s Analysis
The analysts predicted potential further downward pressure on Bitcoin’s price. They pointed to a monthly expiry of around $2.2 billion scheduled for Aug. 2. This event, they suggest, could cause Bitcoin to stall or even slightly retreat from the $68,000-$69,000 resistance zone.
Despite the potential for a pullback, the analysts emphasized that leveraged long positions currently have more sway than spot market activities. They noted that while the market is firmly in a higher timeframe uptrend, a short-term price decline or range is likely.
On Monday, Bitcoin briefly reached $70,000, a level unseen since June 7, before losing momentum and trading below $67,000 later in the day.
The Broader Macroeconomic Environment
Bitfinex analysts described the broader macroeconomic environment as cautiously optimistic. They noted that the housing market continues to be a drag on growth due to higher-than-expected median house prices affecting existing home sales.
July has historically been a strong month for Bitcoin. This year, the cryptocurrency saw over a 15% gain in the last 30 days, recording over $19 billion in year-to-date inflows, a new record. Data shows that Bitcoin products received nearly $520 million in capital between July 22 and July 26, pushing Bitcoin’s inflows past the $3.6 billion mark for the year.
