BTC Price Plummets by Over 4.5% as Enthusiasm Fizzles Out for Spot Bitcoin ETF
Bitcoin (BTC) has tumbled over 4% within the past 24 hours, erasing all gains achieved following Grayscale's recent win against the US SEC. Currently, Bitcoin is valued at $26,035, boasting a market capitalization of $507 billion.
The prevailing bearish sentiment persists, mainly attributable to the US SEC's decision to postpone its ruling on seven spot Bitcoin ETF applications submitted by industry giants like BlackRock, Fidelity, and Invesco. BTC's inability to breach the critical 200-day moving average at $27,500 is further exacerbating the situation.
In terms of potential downward movement, Bitcoin is on the cusp of revisiting the $25,000 support level in the immediate future. This aligns with the suspicions of crypto analyst Ali Martinez, who previously speculated on price manipulation during Bitcoin's recent surge post-Grayscale victory. The subsequent price correction lends credibility to Martinez's theory.
Looking ahead, the cryptocurrency market is bracing for the expiration of 26,000 Bitcoin options later today, an event tracked by data from Greeks.live. The Put Call Ratio, measuring the balance between put options (betting on price decline) and call options (betting on price rise), currently stands at 0.50. The "max pain point," representing the price at which most options contracts become worthless for their holders, is pegged at $27,000. This collective notional value of options contracts amounts to a substantial $690 million.
Examining the technical aspect, Bitcoin displays persistent weaknesses. September appears poised to be a bearish month for the cryptocurrency, as suggested by the accompanying technical chart. It suggests that BTC's price may linger around $26,000 for a while before potentially succumbing to a breakdown.
