Bitcoin (BTC) had one of its best moments of the year earlier this week, hitting $80,000 after months of struggle. CoinGecko data shows that Bitcoin has risen by more than 25% in the 14-day and monthly charts. BTC is currently facing substantial resistance at the $80,000 mark, and the asset could face increased volatility in the coming days. Let’s discuss if Bitcoin (BTC) face a price dip soon, or if the asset will continue to rally.
Bitcoin To Face A Price Dip Soon?
While Bitcoin’s (BTC) latest was much needed and commendable, the asset may be heading into volatile territory. BTC will a $6.36 billion options expiry on Deribit this Friday. Roughly 81,000 Bitcoin (BTC) contracts are set to expire, with max pain at $69,000 and a put/call ratio of 0.85. We could see violent price swings in the coming days.
Moreover, the latest rally was likely fueled by increased liquidity due to the US Treasury’s decision to increase bond buybacks. However, the Treasury will have to refill its coffers eventually and the liquidity could revert back from the cryptocurrency market. Bitcoin (BTC) could take a hit under such circumstances.
Another factor behind Bitcoin’s (BTC) recent surge was President Trump’s cryptocurrency event at the White House. At the event, Trump stated that the US plans on purchasing a large amount of Bitcoin (BTC) and other cryptocurrencies. The statement led to a massive uptick in investor confidence. However, if the plans do not follow through, sentiment may dip once again.
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The highly anticipated CLARITY Act is also facing substantial push back from several lawmakers who are asking for more ethics language. The move is to not allow people in positions of power to profit from the cryptocurrency market. If the CLARITY Act does not go through, Bitcoin (BTC) and other cryptocurrencies may dip.