Bitcoin price analysis: BTC/USD sits below $6,000; CME Bitcoin Futures expiration is a major short-term risk


  • Bitcoin Futures expiration may cause a volatility spike.
  • BTC/USD recovery is capped by $6,000 resistance.

Bitcoin spiked to the intraday high of $5,965 amid a short-lived boost of volatility and trading volumes. However, the momentum proved to be unsustainable and most likely related to one-off transactions. The digital currency No. 1 is down 3.5% on a daily basis and mostly unchanged since the beginning of the day.

Bitcoin traders should be prepared for a volatile day as we have a sort of quadruple witching day for cryptos: the end of the week, months and quarter, plus the expiration of July Bitcoin Futures on CME. Investors may attempt to unwind their futures positions to avoid settlement.

Bitcoin is going have the fourth bearish week in a row. The coin has lost 20% of its value in June, slipping below $6,000 handle. While hardcore crypto enthusiasts point out that it is still 135% higher than 12 months ago, short-term speculators are disappointed and may be leaving the market for now. 

Bitcoin technical picture

From the short-term perspective, the upside is capped by $6,000, followed by 50-SMA (hourly chart) at $6,055. Once it is cleared, the bulls may count on an extended recovery towards $6,200. On the downside, the immediate support comes at Sunday's low at $5,777, followed by $5,550 (November 12 low).

BTC/USD, the daily chart

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Cardano Price Forecast: ADA targets 900% bull rally, but it must clear $0.33 first

Cardano had a significant rally towards $0.355 at the beginning of 2021. After a notable dip to $0.228, bulls bought it and managed to push Cardano price to $0.33 again before a small rejection.

More Cardano News

Ethereum price aims to flush out doubters before the ultimate breakout to $2,000

Ethereum bulls bought the dip on January 11, pushing the digital asset from a low of $915 towards $1,256. The smart-contracts giant has been outperforming Bitcoin in the past 24 hours despite the negativity seen on social media.

More Ethereum News

XLM Price Prediction: Stellar consolidates ahead of a 30% move

XLM price trades at $0.291 at the time of writing after a healthy consolidation after hitting a 2021-top at $0.411. There is a high chance that XLM is about to see a massive breakout or breakdown within the next 24 hours.

More XLM News

Bitcoin Weekly Forecast: BTC price faces extreme volatility ahead of a new all-time high

Bitcoin had a wild run this week, dropping from a high of $41,350 to a low of 30,420 in less than 48 hours. The panic sell-off was stopped on its tracks at the 26-EMA on the daily chart as bulls quickly bought the dip and created a V-Shape recovery pushing BTC towards $40,100 again. 

More Bitcoin News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: BTC price faces extreme volatility ahead of a new all-time high

Bitcoin had a wild run this week, dropping from a high of $41,350 to a low of 30,420 in less than 48 hours. 

Read the weekly forecast

BTC

ETH

XRP