• The crypto market cap is bouncing at a support level after breaking out from the $1.04 trillion resistance area.
• A large volume of Bitcoin options are set to expire today which could generate volatility in short-term price movement for BTC.
• A bearish reversal remains possible if the crypto market cap breaks below the current trading level of $1.04 trillion, it would suggest a bearish trend and could result in lows near $960 billion.
Crypto Market Cap
The crypto market cap bounced at a support level after breaking out from the $1.04 trillion resistance area. On February 15th, the market cap had broken through this resistance level and validated this level as support over the following two days. By February 21st, it had increased to a high of $1.1 trillion, but a bearish divergence on the daily RSI caused another downward movement for the market cap. At press time, the focus is on Bitcoin with its options expiring today being a decisive factor for short-term future price action via ratios.
Bitcoin Options Expiry
Today approximately $1.8 billion worth of Bitcoin options contracts are set to expire, which could generate volatility in short-term price movement for BTC. The asset’s Open Interest, which represents the total amount of outstanding derivative contracts that have not yet been settled, has reached 300,000. Bitcoin options contracts allow traders to speculate on the price of BTC by buying (call) or selling (put) Bitcoin at a specific price at a certain expiry date; past performances of these contracts are often used as indicators for short-term future price action via ratios.
Bearish Reversal
A bearish reversal remains possible since the daily RSI has not yet disappeared from its bearish divergence trend line, which could indicate further downward movement in prices if broken below current levels around $1.04 trillion; suggesting lows near $960 billion if breached..
Potential Impact
The potential impact of these option expiries on prices is uncertain; however with such large volumes involved there may be an increase in volatility before and after their expiration due to traders hedging positions or taking profits off open positions (buying/selling). This will be closely observed by market participants as well as analysts over the next few hours leading up to 4 pm UTC when they expire today (February 24th).
Conclusion
In conclusion, due to potential impacts from option expiries today and existing bearish divergences on daily charts there remains possibility for further downwards movements towards lows near $960 billion if key supports fail to hold above current levels around 1$0trillion; making monitoring technicals more important than ever during these times of high volatility and uncertainty within markets worldwide