DailyCoin Bitcoin Regular: Turbulence Looms for the BTC Price

Exploring recent Bitcoin dynamics and market sentiments, unveiling insights from options expiry and institutional influence for potential growth.

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  • Bitcoin price action has remained repetitive, leaving room for both gains and corrections.
  • Traders have remained cautious ahead of the options expiry.
  • Bitcoin’s current overall outlook still remains positive despite the recent decline.

Merely seven days have passed since our last DailyCoin Bitcoin Regular update. However, given the turbulent price action seen during this period, the desire for a fresh update is entirely understandable. 

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Here at DailyCoin, we take pride in keeping our audience well-informed. Thus, to satiate your curiosity, let’s delve into some noteworthy events from the past week. To do this, we offer you the Bi-Weekly DailyCoin Bitcoin Report, put together by our expert Kyle Calvert.

News and Events: Understanding Impacts

$1.6B in BTC and ETH Options Near Expiry

The cryptocurrency community is on edge as the expiry of a massive $1.58 billion worth of Bitcoin (BTC) and Ethereum (ETH) options looms. A total of 35,000 BTC options and 270,000 ETH options are set to expire on Friday, November 17, 2023. The outcome of these options could have a significant impact on the prices of BTC and ETH.

Fresh Liquidity Revitalizes Market

Bitcoin’s price surged above $37,000 last week, marking its first ascent above that threshold since April 2022. The surge was accompanied by a resurgence of liquidity, historically indicative of impending significant bull markets. For the first time in several years, the cryptocurrency markets are witnessing a return of tons of new liquidity. 

SEC Postpones Spot ETFs Verdict

The SEC declared on November 15 its choice to prolong the assessment period for Grayscale’s Ethereum ETF application. Explaining the necessity for a more comprehensive evaluation and consideration of related issues, the commission has extended the decision timeline by an extra 45 days. The new deadline for a verdict on the application is set for January 1, 2024.

Community Sentiment

Bitcoin’s price action continues to exhibit a repetitive pattern, leaving the door open for both a surge towards new highs and a deeper downward correction. Market participants remain cautious, recognizing the potential for either scenario.

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On-chain monitoring resource Material Indicators expressed their belief that a market correction is overdue, but acknowledged the possibility of another attempt to break through the $38,000 – $40,000 resistance zone.

BTC/USDT order book liquidity chart. Source: Material Indicators/X
BTC/USDT order book liquidity chart. Source: Material Indicators/X

Despite the uncertainty, Material Indicators maintained a positive outlook on Bitcoin’s long-term prospects, stating that “the fundamentals remain strong.”

According to cryptocurrency trader Trader Skew. In a post on X, Skew said that Trend Precognition indicators suggest that the rally could continue, with $40k being a potential target. However, They also cautioned that there are no guarantees that Bitcoin will reach this level, and a dip below $35,375 would invalidate the signals.

Current Outlook

Bitcoin has experienced a slight decline in prices this week, dipping by 3.22% to its current value of $35,930. Traders are maintaining a cautious stance as they anticipate the potential volatility surrounding the upcoming options expiry.

While Bitcoin remains up 26% over the past 30 days, there is a possibility of a significant surge in the cryptocurrency’s price during the fourth quarter of this year. This anticipation is primarily driven by the belief that institutional investors will continue to enter the Bitcoin market, fueling further demand and driving up prices.

Despite the recent decline, Bitcoin’s overall outlook remains positive. The cryptocurrency’s fundamental strength and growing adoption by institutional investors suggest that it is well-positioned for continued growth in the coming months.

Fear and Greed

The way people feel significantly impacts the cryptocurrency market. To navigate these emotions, the Fear and Greed Index plays a crucial role. This index is built upon two fundamental concepts: 

  • Extreme fear suggests a potential buying opportunity. 
  • Excessive greed signals an overheated market. 

The index ranges from zero to 100, with zero representing extreme fear and 100 indicating extreme greed.

Fear & Greed Index as well as Historical Values. Source: Alternative.me
Fear & Greed Index as well as Historical Values. Source: Alternative.me

Today’s Fear and Greed Index stands at 63, indicating a decrease of 7 points compared to the reading from two weeks ago. It is crucial to note that the Fear and Greed chart undergoes daily fluctuations; therefore, it is essential to stay updated by regularly monitoring it. 

On the Flipside

  • Options expiry can trigger market volatility; however, historical data suggests such events might not always lead to drastic price shifts.
  • Bitcoin price trends demonstrate that repetitive patterns don’t guarantee future outcomes, indicating the need for cautious optimism amidst market speculation.

Why This Matters

Bitcoin’s dynamics reverberate throughout the entire cryptocurrency landscape, making each event and trend crucial for gauging the market’s pulse. Understanding the implications of expiring options, market sentiment, and regulatory decisions is key to grasping the broader crypto market’s direction and potential shifts in investor behavior.

To delve deeper into the impending volatility with $1.6 billion BTC and ETH options nearing expiry, read here:
Volatility Looms as $1.6B in BTC and ETH Options Near Expiry

For insights into USDT’s flagged potential risk affecting BlackRock’s Bitcoin ETF, explore further here:
USDT Flagged as Potential Risk for BlackRock’s Bitcoin ETF

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.