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Time has come for Bitcoin to defend $30K. Here’s why?

Many say that the simple trading days of Bitcoin have become outdated. Scrutinizing Technical charts or spot market order books are all ancient now. After March 2020 major crash BTC has gained back its position a little. This gives hope to many crypto enthusiasts who #HODL. In May, BTC saw its downfall which was devastating for many. During the period Tesla too suspended all bitcoin payments because of this unforgettable degradation.

Bitcoin Slides Toward $30K

Image Source:- Deep Resonance Crypto

The Wall Street geniuses put downward pressure on the crypto BTC and pushed it to $30K support. But here’s a catch, if someone breaches the condition, then there could be more selling burden from different options traders. And then it leads to a rapid down-slide.

More about BitCoin

We can all see that since Mid-May BTC price didn’t increase over $40000. It’s always between $30K to $40K. Moreover, traders are selling puts at $30K whereas some are selling calls at $40K. Some options traders are very busy taking high risks to gain profit sooner.

Here’s a piece of interesting information, Deribit data shows a high focus of open interest at $30K put. Also, the $40K call might expire by the end of July. People take high risks and put a gambit on high strike calls and low strike calls. We often see traders taking short steps by selling higher striking calls and lower striking puts. And these traders are actually betting on the fact that the BTC market will become stronger as time goes by. Additionally, this leads to a substantial drop in the volatility of the data.

Bitcoin Powers Through $30K. Will It Last?

Image source: Forbes

Wondering about the Put Option and Call option?

A put option gives the trader a choice to sell his/her asset at a predetermined cost on or before a determined date. Whereas the call option gives an option for the trader to buy based on their interest.

It’s highly disheartening that BTC is almost in the lower end of the $30K range. Crypto Enthusiasts are still having faith that eventually there will be substantial growth when seen from a perspective of long term. If the price falls below $30,000, then there is a high chance that the traders who sold puts may turn to the downside risk. And they’ll short BTC or may sell their share of BTC in the spot market. And that my friend is not at all appreciable because it’ll lead to price drop immediately.

What are your specific thoughts on Bitcoin defending $30K? Is it a good thing? Should the traders sell puts or sell calls? What would you do and what do you think will be the best option to do in such a condition? Let us know in the comments below. If you find this piece of content useful then share it among your group members and your crypto enthusiast friends. Also, don’t forget to like and share your thoughts.

Also read:- What is Dogecan? Check out the hilarious replies on Twitter!



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