Bitcoin Options Expiry, Grayscale Outflows, and Bold Predictions: What to Know Before Trading BTC Today
Bitcoin (BTC) has experienced a significant rally this week, reaching a high of $64,000. However, with a major options expiry event approaching and mixed signals from investors, there are several key factors to consider before trading Bitcoin today:
1. Big Bitcoin Options Expiry
Today (March 1st) marks the second-largest Bitcoin options expiry of the month, with approximately 32,200 contracts worth $1.96 billion expiring. The put/call ratio of 1.49 suggests more traders are leaning towards a potential correction, with the max pain point (where most options contracts expire worthless) sitting at $55,000.
However, the significant call open interest at the $60,000 strike price (15,329 contracts) suggests bullish sentiment among some traders. There is also high call interest at $65,000.
2. Grayscale GBTC Outflows Continue
Grayscale Bitcoin Trust (GBTC), a leading Bitcoin ETF, witnessed another day of outflows on February 29th, with over $600 million leaving the fund. This continues a trend of outflows since January, totaling approximately $8.4 billion, raising questions about investor sentiment towards GBTC specifically.
However, other Bitcoin ETFs saw inflows on the same day, suggesting investor preferences are shifting within the digital asset space.
3. Bold Predictions and Market Growth
Prominent crypto investor, Lard Davis, has ignited discussion with his prediction of a $10 trillion market cap for the entire crypto space. This would represent a significant increase from the current $2.4 trillion market cap and imply a nearly 400% rise in Bitcoin’s price to reach $250,000.
While Davis’s prediction is ambitious, the overall crypto market has grown substantially this year, raising $1.6 trillion since January.
BTC/USD Technical Analysis
- Bullish indicators: Price action has broken above the key resistance level of $60,000, indicating an upward trend. The 50-day and 200-day moving averages are both sloping upwards, further confirming the bullish trend.
- Resistance levels: The immediate resistance level sits around $65,000, followed by the psychological level of $70,000.
- Support levels: The first support level sits around $60,000, followed by the recent low of $57,000.
- Relative Strength Index (RSI): Currently hovering around 70, nearing overbought territory. This suggests a potential short-term pullback before the uptrend resumes.
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