Bitcoin prices have been on track for three consecutive weeks as traders form risky chart patterns on their weekly charts, with traders expiring $15 billion options and risky chart patterns.
summary
- Bitcoin prices have crashed for three consecutive weeks.
- Over $15 billion BTC and Ethereum options expire today.
- Technical analysis refers to more BTC price dips.
Bitcoin (BTC) prices plummeted to $108,000 on Friday, August 29th, down significantly from an all-time high of $124,200, and could continue to be dull if you lose important support.
Bitcoin prices precede the expiration date of important options
Cryptocurrencies and stocks often remain extremely unstable ahead of the expiration date of major options. The stock market is generally going to plunge ahead of his triple witching event when stock and index options expire.
Bitcoin prices have fallen as investors wait for the expiration dates of large options, over $15 billion. Data compiled by Deribit, one of the top derivative exchanges for derivatives, shows that short sellers are targeting Bitcoin dives from $95,000 to $110,000.
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More data from Coinglass shows open interest in options jumped over the past three days, reaching a high of $57 billion on Friday. Open interest in rising options is common towards major expiration dates.
Bitcoin Options Open Interest | Source: Coinglass
Bitcoin prices often rebound a few days after the option expires, which can occur soon as weighted funding rates remain positive over the past few months.
The risk this time is that expiration dates occur when investors are embracing risk-off sentiment. Top-level indices like the Nasdaq 100 and Dow Jones, for example, fell by 1.10% and 0.35% on Friday, with Nvidia leading losses. They also fell after the report pointed out US sticky consumer prices.
BTC price risky chart patterns are concerns
Bitcoin Price Chart | Source: crypto.news
Another notable risk is that Bitcoin has slowly formed a very dangerous pattern since last March. The weekly log chart pattern indicates that it formed an elevated wedge pattern.
That cap connects the highest level since March 11th last year, and the underline links the lowest level since August. These lines are nearing convergence and are at risk of stronger crashes in the coming weeks.
Bearish BTC price forecasts are confirmed if the coin drops below $105 below the bottom of the wedge pattern. If this happens, you risk entering support at the lowest level in April of $74,470.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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