Bitcoin Sell Pressure could lead to a test of the $56K support level if BTC fails to break through the $60K mark before the options expire on Aug. 16.
The upcoming expiry option is dragging BTC to drop its price below another key support level as the selling pressure is making BTC unable to break the bearish trend.
On Aug. 16 more than $1.4 billion of Bitcoin is set to expire at 8:00 am UTC as per the data from Deribit. This sets Bitcoin holders at a loss at $60K point, the point where a majority of options contracts would expire worthless.
The data from CoinMarketCap showed that regardless of the expiry, the price of the asset fell by 4.50% in the last 24 hours of trading.
This downtrend indicates that $1.4 billion worth of Bitcoin will expire if the asset is unable to break above $60K. If the asset expires, It will cause Bitcoin to further drop its price and create volatility in the crypto market. The other altcoins will also bleed in response to this drop.
The United States spot Bitcoin ETF remained positive for two days to support BTC but again turned negative on August 14. The total outflow experienced by the Bitcoin BTF exceeds $81 million according to the data collected by Farside Investors.
According to Bitfinex analysts, more inflow can be seen in the BTC ETF as the Consumer Price Index is in favor of the asset.
The US Bureau of Labor Statistics shared the data of the Consumer Price Index on August 14 showing an annual increase of 2.9%, which is considered lowest since 2021.
The increase of funds in the BTC ETF can help Bitcoin appreciate its price as Bitcoin ETF witnessed 75% of the new investment in the crypto since Feb. 15 as it crossed the mark of $50,000.
Can Bitcoin price dive below $56,000?
Trade Confidant made its post on X, telling his audience that the asset can test another support of $50K, which is likely to be possible based on market sentiments and large Bitcoin holders.
Another analyst named Crypto Pump Analyst also warned his audience about the big drop in Bitcoin price by testing the support zone of $50K.
“Now the price of bitcoin is expected to reach the next demand zone of $56k. When bitcoin price comes near the $56k zone we will try long.”
