Bitcoin Taps $44K as Open Bearish Options Set to Expire
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Last week, the Fed announced in its policy meeting that it would raise its interest rate by 25 basis points to 0.50% to combat rising consumer prices. This was a notable rate hike considering it was the institution’s first since 2018.
Bitcoin has now added over $2K to its price since the announcement, as it currently trades at $43K from $40.9K on March 17, the day of the announcement.
That said, prominent on-chain analyst Will Clemente has stated that the primary catalyst behind the recent rally is the net accumulation by whale accounts in the market. Reports show that the open interest for the March 25 options expiry for BTC is $3.34 billion, although the actual amount might be lower considering that bulls showed too much optimism at the time of options creation.
However, Bitcoin’s recent spike above the $42K level left bears puzzled as only 16% of the bearish option bets for March 25 were placed above that level. Bears now have to find a way to send prices back below $42K before the options expire tomorrow or lose $175 million.
Key Bitcoin Levels to Watch — March 24
Bitcoin has climbed back near the $44K top as bulls continue to hold their ground ahead of the options expiry tomorrow. A close of the options above $42K spells doom for bears, as $175 million worth of options could expire.
Due to how unlikely (not impossible) it is to see a drop to $42K by tomorrow, we could witness an increased bullish push to the $45K to $46K zone in the coming days. However, a mild correction to the $43K zone might occur in the near term, as BTC trades in overbought conditions across most time frames.
Meanwhile, my resistance levels are at $44,000, $45,000, and $46,000, and my key support levels are at $43,000, $42,000, and $41,000.
Total Market Capitalization: $1.99 trillion
Bitcoin Market Capitalization: $833.5 billion
Bitcoin Dominance: 41.7%
Market Rank: #1
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