Despite looming option expiry – experts remain confident
Bitcoin could slip below US$50,000, but indicators remain positive in the long term.
Concerns over the imminent expiry of bitcoin options, which have reached a record US$6.1 billion, the highest ever, have pushed the bitcoin (BTC) price down to US$50,400 overnight.
This further downturn is hardly surprising, however, as some experts had already feared that a retracement to the support level of 47,000 US dollars was within the realms of possibility. Although the previous upward momentum has thus probably dried up for the time being, there are initial indicators that BinBot the psychologically important 50,000 US dollar mark will not be undercut.
While the technical data paint a mixed picture for the short-term price trend, the fundamental data remain clearly positive. For example, sovereign wealth funds and pension funds are now increasingly buying into the market-leading cryptocurrency. This is evidence of the increasing adoption of Bitcoin and the asset class as a whole. More and more investment funds are also being set up for Ether (ETH) to meet the demand of institutional investors.
Damage kept within limits
German crypto analyst and Glassnode co-founder Rafael Schultze-Kraft had already pointed out on 23 March that Bitcoin could continue to go downhill for the time being, as the realised Bitcoin price between 51,100 and 54,000 US dollars (red border, see tweet below) is comparatively low. However, if the 50,000 US dollar mark should be undercut, he sees strong support at 47,400 US dollars that could prevent a further slide.
Not much #Bitcoin realised between here and $51k. Would not be surprised if we dipped a bit more.
Strongest on-chain support currently at $47,400.https://t.co/3GFPTQPp6F pic.twitter.com/NLBQvEIGfB
– Rafael Schultze-Kraft (@n3ocortex) March 22, 2021
In another tweet on Thursday, Schultze-Kraft therefore confirms that the additional downturn is not unexpected for him, but that he nevertheless remains confident.
Accordingly, Schultze-Kraft writes:
„Nothing has changed in the structure. I have yet to see a long-term indicator that is negative.“
Liquid Supply also suggests a return to strength soon, as the ratio is currently at its highest level in more than 6 months.