Hello dear readers and cryptocurrency lovers, today I want to socialize with all of you information related to today's Holy Thursday price action behavior of the major cryptocurrencies by market capitalization.
Checking the different time frames of the Bitcoin charts I can intuit that there is a kind of weakening of the psychological level located at $28,000, this if we take into account that during the last week of March and these first days of April this year we have not been able to break strongly this important resistance.
According to information disclosed by Marcel Pechman in the news portal Cointelegraph, "commodities rallied as the U.S. Treasury struggled with the banking crisis, but Bitcoin bulls also overextended themselves in this week's options expiration".
The above will have direct implications on the price action of the major cryptocurrencies, as this implies that bullish traders will be at a disadvantage which will likely drop a pullback to the $26,000 area, even at the time of writing the Bitcoin price was already at -0.5% loss.
However, despite the weakening of the BTC price action, some experts believe that the positive movement of the Bitcoin during the month of March can be attributed in part to an increase in the demand for commodities.
It has been mentioned, that "investors' appetite for commodities increased tremendously after the U.S. Treasury Department on March 21 discussed the possibility of extending the Federal Deposit Insurance Corporation's bank deposit insurance."
In this regard, from my perspective I concur that "Bitcoin bulls may have benefited from the increased demand for inflation protection, but some may have missed the opportunity by making $30,000-sized bets."
The scenario seems to favor the bulls, even though there are conflicting positions I believe that in the following weeks we will see significant pullbacks that will lead may as I said before make the BTC price drop to the $26,000 area before executing any further upside moves. I would still like to know your appreciation on this matter.
SOURCES CONSULTED
Cointelegraph $1.12B in Bitcoin options expire this week, and bulls appear to be at a disadvantage. Link
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