https://ift.tt/pSkugBZ To Save The Energy For $40k Amidst $730 Million Options Expiry! Is That Possible? 

Bitcoin To Save The Energy For $40k Amidst $730 Million Options Expiry! Is That Possible? 

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The world’s most dominant crypto is no longer in reach of $40k, yet metrics indicate that bulls are likely to experience few short-term losses in an effort to strengthen their next run at the key resistance level. The last couple of months have been awful for BTC bulls, as frequent comments on tapering of interest rates affected the asset’s price action. 

The relative strength index for the asset is taking nosedive and hovering at the oversold territory. Hence, the Bitcoin price is likely to break the barriers of $38k to confirm the weekly close of around $40k. In recent times, the asset was unaffected though there was a flush out of huge volumes of options expiry. 

Can We Expect a Short-Term Bounce In Bitcoin Price Action? 

It is widely believed by Crypto maximalists and analysts across the space that funding rates are the greatest indicators to know the Bitcoin price action. In addition, Glassnode has reported that funding rates have traded negative for the entire month of January. Especially, the recent cycle of funding rates has been the longest since the period of May-July 2021. 

Further, we can clearly observe from the above chart that whenever the funding rates were traded negative, the flagship asset has always taken a nice bullish divergence after each cycle. Hence, there are massive price forecasts that have been running around the market which predict short-term Bitcoin bounce to $40k

The report from Santiment further highlights that Bitcoin’s onchain activity has picked up the phase encouragingly. Though the asset continues to hover at $37.2k, circulation smashed its highest since November, and address activity is constantly rising to new levels. 

Collectively, as per Friday’s options expiry open interest, Bitcoin bulls positioned heavy bets between $40k and $44k. In the meantime, the $430 million buys (call) dominate the $300 million sell (put) instruments. As a whole, the asset’s optimistic of reaching $40k by the weekend.

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