Bitcoin (BTC) price is once again below $60,000 and is lingering at $58,400 at the time of writing. After the recent downturn that was challenging for altcoins, the expected buying appetite above $60,000 has not yet formed. Tomorrow, we might see a deeper dip. So why is the risk of decline increasing?
Will Bitcoin Drop?
The expiration of options can cause significant fluctuations in BTC price. According to Deribit, options worth over $1.4 billion will expire tomorrow. Considering the max pain point is $60,000, if the price cannot surpass this threshold, sales could deepen to $56,000.
According to Farside Investors data, spot BTC ETFs, which saw net inflows for two days, experienced a net outflow again on August 14. The $81 million net outflow is related to the lack of excitement from good macro data and the declaration of a global emergency due to the monkeypox virus.
Bitfinex analysts commented on the current situation:
“Positive CPI data is expected to catalyze more inflows. Investors are likely positioning themselves to benefit from the anticipated rate cut and the potential for a broader market rally. As a result, we can observe continued and possibly accelerated inflows into these ETFs, reflecting a shift in sentiment towards riskier assets.”
The CPI data came in at 2.9% year-on-year, representing the lowest increase since 2021.
What Will BTC’s Price Be?
According to Trade Confident researchers, whale movements are warning us about a drop to $56,000. With the expiration of options and the weekend’s low volume, BTC price could experience a downward fluctuation within the next 48 hours. Analysts wrote in their latest assessment:
“Based on current market indicators, we are looking at $56,000 for BTC’s next move!”
An analyst with the pseudonym Crypto Pump Analytics also pointed to $56,000 in today’s analysis. Of course, it should be remembered that cryptocurrencies are a difficult area to predict. Possible surprise news or high-volume purchases could push the price in the opposite direction, as we have seen many times. For BTC, which has been continuing boring price movements for months, this needs to end at some point.
