Bearish view
- Sell the BTC/USD pair and set a take-profit at 29,500.
- Add a stop-loss at 31,400.
- Timeline: 1 day.
Bullish view
- Set a buy-stop at 30,550 and a take-profit at 31,500.
- Add a stop-loss at 29,500.
The BTC/USD price moved sideways as the recent momentum faded. Bitcoin was trading at the important resistance level of 30,000 as some buyers started taking profits. It remains a few points below the year-to-date high of 31,410.
Options expiry ahead
Bitcoin has done quite well as investors reacted to numerous positive news in the industry. These news events helped to ameliorate the legal challenges that the industry is going through. Earlier this month, the SEC sued Binance and Coinbase.
At the same time, regulators in the UK and France are scrutinising Binance, the biggest exchange in the world. And most recently, Belgium’s regulators banned Binance from operating without the required licenses.
Therefore, news that companies like Ark Investments, Blackrock, and Invesco had applied for a spot Bitcoin ETF helped to ease the pain in the industry. Analysts believe that the Securities and Exchange Commission (SEC) will accept the first spot BTC ETF soon. If this happens, it will likely bring more institutional investors into the industry.
Bitcoin retreated as some of the biggest beneficiaries of last week’s gains started taking profits. Also, the rally took a breather as the market waits for the next catalyst in the crypto industry.
The next important mover will come on Friday when 150,633 BTC options will expire at the Deribit exchange, the biggest player in the industry. Options are popular financial derivatives that give investors an option but not the right to buy or sell at a certain strike price. Most of the open interest is at $30,000, meaning that the price could remain in this range for a while.
BTC/USD technical analysis
The BTC/USD price peaked at 31,466 during the weekend. This was a notable level since it was the highest level in more than a year. It has now pulled back and is hovering at the psychological level of 30,000. The pair has moved slightly above the 50-day and 25-day moving averages.
Most importantly, the Relative Strength Index (RSI) has formed a bearish divergence pattern, which is a sign that the bullish trend is losing steam. Therefore, the pair will likely remain in this range on Tuesday. The support for the pair will be the Woodie pivot point at 29,660 while the resistance will be at 31,460.
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