Bitcoin prices fell sharply on Friday as the bullish momentum of the past 24 hours began to fade. After encouraging US economic data, including CPI inflation and retail sales reports, traders are starting to be bullish on Bitcoin. Some investors believe that this may be the last chance to buy when prices are falling.
However, Bitcoin option expiration dates are a major obstacle in this surge. Meanwhile, the sentiment index of fear and greed in the crypto market has fallen from 29 to 27 (fear).
Recent macroeconomic events such as the increase in retail sales and the decline in PPI and CPI inflation in the US have turned investor sentiment into a bullish one. This has the US FOMC Committee considering starting interest rate cuts soon, with markets expecting Fed rate cuts to start in September.
CME FedWatch tool data shows a 71.5% probability of a rate cut of 25 bps in September after the latest macroeconomic data. The data also indicated a possible 100 bps rate cut by the Fed this year.
US stock futures were mostly flat on Friday as investors believed there was a strong recovery this week. Data showing the resilience of the US economy, including inflation, jobless claims, and retail sales, have helped US stocks record their best performance of the year.
Bitcoin prices fell sharply during US trading hours mainly in response to volatility related to crypto market expirations. Of note, 24,000 Bitcoin options worth $1.4 billion expired today, with a ratio of 0.83. The pine max point is $59,500, which is higher than the current price of $57,853. This means the trader's position has been liquidated.
Additionally, Coinglass data shows BTC futures open interest volume down 1% in an hour on CME and Binance. Traders are deciding to make their final sell against the price of Bitcoin before the CME market closes today.
Liquidity data shows that $210 million in crypto has been liquidated in the past 24 hours, with $25 million in the last hour. BTC recorded more than $5 million in liquidity in an hour and $75 million in the last 24 hours.
The price is now facing resistance at the downtrend line in 1 hour. A little encouragement can favor the surge. However, the risk of falling is higher. BTC price analysis by analysts shows the price could fall to $54,000.
According to a 10x Research report, Bitcoin may return to the trading zone between $50,000 and $60,000. On the upside, Bitcoin price is facing strong resistance in the range between $60,000-$61,000. In addition, other fears related to the sale of Bitcoin by the US government and hedge funds returning to Yen carry trades also influenced today's price movements.