The post Bitcoin Bounces Back: Analyst Predicts New ATH After $2.5 Billion Options Expiry appeared first on Coinpedia Fintech News
Bitcoin experienced its largest price drop of the year on Monday, falling 30% amidst a global market downturn. This decline was triggered due to the economic policy changes in Japan, which triggered the market sell-off, leading to significant losses across various assets.
Despite this significant drop, Bitcoin’s recovery sharply and has grabbed the attention of both crypto enthusiasts and analysts. Michael van de Poppe, a well-known analyst, hints at a “V-Shape recovery for BTC,” likening it to past major market disruptions.
Bitcoin Making V-Shape Recovery
As of now, Bitcoin price is trading positively at around $60,427, reflecting a surge of 5.27% with a market cap of $1.19 trillion. Meanwhile, Michael van de Poppe has noted Bitcoin’s impressive bounce back, which he describes as a “V-Shape recovery.” This term refers to the swift and sharp recovery in Bitcoin’s price following a major dip.
Van de Poppe compares this recovery to past market disruptions, like the COVID-19 pandemic’s “Black Swan” event, suggesting Bitcoin’s resistance and potential for future gains.
Further, Van de Poppe predicts that Bitcoin could hit a new all-time high (ATH) by September or October if it maintains its current position above $57,500. This forecast indicates that Bitcoin’s fundamental strength is still robust, suggesting potential growth opportunities for investors shortly.
$2.5 Billion in Crypto Options Expiry
Meanwhile, on Friday, August 9, approximately 32,000 Bitcoin options contracts, valued at about $1.9 billion, will expire. This expiration is expected to have a limited impact on spot markets compared to the previous week.
However, the put/call ratio of 0.71 indicates that more call contracts are expiring than puts, with the max pain point set at $60,000.
Ethereum Options Expiry
Alongside Bitcoin, 206,000 Ethereum options, valued at $560 million, are also expiring. These Ethereum options have a put/call ratio of 0.96 and a max pain point of $2,950, which is significantly higher than current spot prices.
The combined ideal value of these crypto options expires at $2.5 billion, adding to market volatility.