Crypto World
Bitwise allocates $233K to support Bitcoin core development
Bitwise Asset Management has announced a $233,000 donation to Bitcoin open-source developers, marking the firm’s second annual contribution tied to the success of its spot Bitcoin exchange-traded fund.
Summary
- Bitwise Asset Management donated $233,000 to Bitcoin development groups as part of its commitment to allocate 10% of gross profits from its Bitcoin ETF.
- The donation will be distributed through Brink, OpenSats, and the Human Rights Foundation Bitcoin Development Fund.
- The contribution follows continued growth of the Bitwise Bitcoin ETF since its launch.
The funds come from profits generated by the Bitwise Bitcoin ETF, which launched with a commitment from Bitwise to allocate 10% of the ETF’s gross profits each year toward supporting the development and security of the Bitcoin network.
According to the firm, the latest contribution reflects strong growth in the ETF during the past year, allowing the company to expand its support for the developers maintaining Bitcoin’s underlying infrastructure.
The donation will be distributed among three nonprofit organizations focused on sustaining the Bitcoin ecosystem: Brink, OpenSats, and the Human Rights Foundation Bitcoin Development Fund.
These groups provide funding, fellowships, and grants to developers working on critical Bitcoin software, security research, and infrastructure upgrades. Their mission centers on supporting the open-source contributors responsible for maintaining and improving the decentralized network.
Bitwise described the developers as “unsung heroes” who help secure and evolve Bitcoin’s technology stack, noting that the contribution represents a reinvestment into the ecosystem that supports the firm’s investment products.
The asset manager also credited investors in the ETF for enabling the donation, stating that the contribution would not be possible without the support of those who chose to invest in the fund.
Bitwise added that its donations are expected to grow alongside the ETF’s expansion, reinforcing its pledge to continue directing a portion of profits toward the broader Bitcoin development community.
The initiative reflects a broader trend among crypto firms and investment products that are increasingly channeling funds toward open-source development as institutional interest in Bitcoin continues to rise.
The Ethereum price slammed into the critical $2,160 resistance level yesterday, and after attempting to reverse a historic six-month losing streak, ETH USD looks to have rejected and is now trading back under $2,100.
Price action is currently extremely volatile, with ETH falling -1.6% over the last 24 hours to trade near $2,080, leaving traders paralyzed between a potential breakout and a classic bull trap.
While bullish momentum is building on lower timeframes, many European trading desks are warning of a classic bull trap setup, a fakeout that lures buyers in before flushing the price to new lows.
With the asset sitting at a make-or-break pivot, this coming weekend could define the Ethereum trend for the remainder of Q1 2026.
Ethereum Price Analysis: What’s Next After $2,160 Rejection?
While the 12-hour timeframe is teasing a massive reversal pattern that has bulls salivating, Ethereum needs to hold above $2,000. A daily close above this level would confirm the inverse Head and Shoulders pattern, with the neckline sitting firmly at that crucial $2,160 level.
Adding to the bullish case is a clear divergence in the Relative Strength Index (RSI), which has been making higher lows while the price consolidated. This momentum shift suggests that sellers are finally becoming exhausted.
If buyers can defend the $2,000 zone and clear the $2,160 resistance level, the immediate path of least resistance flips to the upside, targeting the 200-day moving average.
However, the risk of a fakeout remains high. If ETH USD fails to clear this breakout and slips back below $2,000, the bullish structure would be invalidated.
In that scenario, the price would likely retest the $1,900 support zone. Traders watching the crypto price prediction today are acutely aware that volume must sustain this move, as a breakout on low volume is a prime candidate for a reversal.
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On-Chain Data Shows Massive Accumulation for ETH USD: Is It Enough?
On-chain metrics reveal aggressive accumulation despite chart resistance. Data from Glassnode shows that long-term holders added 252,142 Ethereum to their holdings in February 2026.
This “averaging down” behavior indicates that investors see current prices as a buying opportunity, regardless of short-term volatility.
This accumulation trend coincides with updates on Ethereum’s long-term roadmap from Vitalik, boosting confidence among institutional investors.
The disparity between increasing holder balances and stagnant prices often signals a potential supply shock, assuming macro conditions don’t lead to liquidation.
Currently, support levels are holding, with the realized price for short-term holders aligning with market prices, suggesting that the capitulation phase may soon end.
Analysts Warn: Is This a Bull Trap?
$ETH update — Mona Lisa Trades
Price nearing a key resistance level. Looking for a possible liquidity sweep before a bearish move. pic.twitter.com/TYkKM0k0oQ
(@TradeX636) March 6, 2026
Despite some market optimism, analysts are highlighting significant structural risks on the weekly timeframe.
Benjamin Cowen points out that Ethereum is trading below its weekly “bull market support band,” and the 50-week and 200-week moving averages are near a death cross.
This has raised concerns among seasoned traders that the current rally might be a “bull trap.” If resistance at $2,160 holds, analysts predict a potential drop to $1,320-$1,345, a level not seen since the last cycle’s early accumulation phases.
Additionally, a new Chinese AI, Kimi, forecasts volatile market conditions leading into 2026 before any sustained all-time highs can occur.
To counter this bearish outlook, bulls need a weekly close above $2,300 on ETH USD to regain structural support; without it, the macro trend remains bearish.
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The post ETH USD: Is the Ethereum Breakout a Bull Trap? appeared first on Cryptonews.
Dubai’s virtual assets regulator has issued a public warning about several companies linked to the crypto exchange KuCoin, alleging they may have been promoting or providing services to residents without the required authorization.
Summary
- Dubai’s VARA issued an alert naming Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited, and KuCoin Exchange EU GmbH for allegedly advertising crypto services under the KuCoin brand without proper authorization.
- VARA said the entities must stop all unlicensed virtual asset activities in or from Dubai, noting they do not hold a license to offer regulated crypto services in the jurisdiction.
- The regulator cautioned that engaging with unlicensed platforms could expose users to financial and legal risks, urging investors to verify whether firms are listed on VARA’s official registry before using their services.
Dubai watchdog flags KuCoin-linked companies for unlicensed crypto activity
In a regulatory notice dated March 5, the Virtual Assets Regulatory Authority (VARA) named Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited, and KuCoin Exchange EU GmbH, which it said are commercially advertising services under the KuCoin brand.
According to the regulator, the entities may have been offering virtual asset services to users in Dubai “without the necessary regulatory approvals” and may have misrepresented their licensing status in the jurisdiction.
As a result, VARA has instructed the companies to “cease and desist all unlicensed VA activities” in or from Dubai.
The authority emphasized that the exchange does not hold a license to provide virtual asset services in or from Dubai, meaning any such activities would be in breach of local regulations governing crypto service providers.
Under Dubai Law No. (4) of 2022 and Cabinet Resolution No. 111/2022, all virtual asset service providers must obtain regulatory approval from VARA before offering services in the emirate.
VARA also warned that interacting with unlicensed platforms could expose investors to “significant financial risks and potential legal consequences”, urging residents to verify whether companies are listed on the regulator’s public register before engaging with them.
The regulator further noted that any promotion, advertising, or solicitation related to KuCoin has not been approved, meaning the platform is not permitted to market or promote virtual asset products or services in Dubai.
Founded in 2017, KuCoin is a Seychelles-based cryptocurrency exchange that offers spot, derivatives and margin trading to users worldwide.
The alert is part of VARA’s broader effort to enforce its crypto regulatory framework and prevent unlicensed operators from targeting investors in the emirate.
Vancouver Mayor Ken Sim’s plan to invest city reserves in bitcoin is not permitted under the Vancouver Charter and British Columbia’s Municipal Finance Authority Act, a staff report says.
The briefing released ahead of a March council meeting recommends closing a 2024 motion to make Vancouver a “bitcoin-friendly city,” after staff determined the plan violates municipal investment rules embedded in the city’s charger. Staff wrote they “conclusively determined that under the Vancouver Charter, bitcoin is not an allowable investment asset for the City.”
The conclusion reflects the highly restrictive framework governing how Canadian municipalities can invest public funds. Section 201 of the Vancouver Charter allows the city to invest idle funds only in a narrow set of instruments, such as federal or provincial government securities, government-guaranteed bonds, municipal debt, bank-guaranteed investments, credit union deposits and certain pooled investment vehicles.
British Columbia’s Municipal Finance Authority Act reinforces the restriction.
Municipal investment pools are limited to conservative assets such as government bonds, municipal securities, bank deposits and highly rated commercial paper.
The law defines eligible securities as bonds, debentures, deposit certificates and promissory notes, reflecting a framework built around fixed income and cash equivalents. Stocks, commodities and cryptocurrencies are not included.
A narrower question remains unresolved: whether Vancouver could still pursue the softer branding goal embedded in the motion by accepting bitcoin for taxes or fees, provided the cryptocurrency is immediately converted into Canadian dollars.
While the charter regulates how city funds are invested, it does not necessarily govern how payments are processed.
Large XRP holders have significantly increased their positions in recent months, accumulating billions of tokens following the sharp market downturn that began around October 10.
Summary
- Large XRP holders accumulated 4.18 billion tokens following the Oct. 10 market crash, according to Santiment data.
- Wallets holding 10M–100M XRP now control roughly 10.87B tokens, signaling sustained whale accumulation.
- XRP is currently consolidating near $1.40, with key support at $1.35 and resistance around $1.50–$1.60.
The broader crypto market experienced a notable correction during that period, with several major assets retracing after a strong rally earlier in the year. The Ripple token (XRP) was among the tokens affected, sliding from above the $2.30 region and entering a prolonged downtrend that lasted through early 2026.
However, the sell-off appears to have created an accumulation opportunity for large investors.
Data from Santiment shows that wallets holding between 10 million and 100 million XRP have steadily increased their balances since the October crash. These addresses collectively added roughly 4.18 billion XRP over the period, pushing their combined holdings to about 10.87 billion XRP.
Meanwhile, the largest whale cohort, wallets holding 100 million to 1 billion XRP, have also maintained elevated holdings, with balances recently climbing toward 8.74 billion XRP.
The sustained rise in these wallet balances suggests that major investors have been quietly accumulating during the market pullback rather than exiting positions, a pattern that historically precedes stronger market moves once broader sentiment improves.
XRP price analysis
At press time, XRP is trading near $1.40, stabilizing after weeks of sideways price action following the earlier decline from the $2.20 region.
The daily chart shows XRP forming a consolidation range between roughly $1.35 and $1.50, indicating a potential base-building phase as volatility continues to compress.
Momentum indicators remain neutral. The Relative Strength Index (RSI) is hovering around 45, suggesting that the asset is neither oversold nor overbought. This typically reflects a market waiting for a stronger directional catalyst.
Meanwhile, the Chaikin Money Flow (CMF) indicator is slightly negative near -0.11, indicating mild capital outflows despite the ongoing whale accumulation.
Key technical levels to watch include support around $1.35, which has held multiple times in recent weeks. A breakdown below this level could open the door toward $1.20.
On the upside, resistance sits near $1.50, with a stronger barrier around $1.60. A decisive breakout above this zone could signal renewed bullish momentum if whale accumulation continues.
Vancouver city staff said Bitcoin cannot be held in municipal reserves and recommended that the city council drop a proposal to create a Bitcoin reserve.
City staff, led by Colin Knight, general manager of the Finance and Supply Chain Management department, “conclusively determined” that Bitcoin (BTC) is not an “allowable investment” for the city under the Vancouver Charter, according to a motions update report dated March 2.
Staff recommended merging the motion with other related initiatives to reprioritize resources, with a final decision pending a council vote at a meeting on March 10.
The proposal to create a Vancouver Bitcoin reserve was originally introduced in late 2024 by Mayor Ken Sim as part of a motion titled “Preserving the City’s Purchasing Power Through Diversification of Financial Reserves — Becoming a Bitcoin-Friendly City.”
The council passed the motion with six votes in favor and two opposed. However, the latest developments could stall the proposal entirely.
Bitcoin’s inflation hedge argument fades amid bear market
Introducing the proposal in 2024, Mayor Sim said the motion was partly aimed at helping the city hedge against inflation using Bitcoin, which has often been described as “digital gold” because of its fixed supply capped at 21 million coins.
“As an open, decentralized, and secure digital asset, Bitcoin has been recognized by many financial experts and analysts as a potential hedge against inflation and currency debasement,” the motion reads.
Related: Bitcoin is forming a bottom as the 4-year cycle ends: VanEck CEO
The argument that Bitcoin acts as an inflation hedge has weakened recently as the cryptocurrency’s price declined sharply. Bitcoin has fallen about 50% from its October 2025 peak of above $126,000, returning to late-2024 levels and briefly touching lows near $60,000.
Despite skepticism from some analysts who argue Bitcoin does not behave like digital gold, macroeconomists such as Lyn Alden remain bullish on the digital asset relative to gold in the near term.
“If I had to bet Bitcoin versus gold over the next two to three years, I would bet Bitcoin,” Alden said on the New Era Finance podcast on Wednesday.
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Key Takeaways
- SOL has declined 57% since US-based Solana ETFs debuted in July, currently trading around $88
- Despite price weakness, Solana ETFs have attracted $1.5 billion in net inflows with minimal redemptions
- Institutional investors account for 50% of total ETF capital inflows
- February 2026 saw Solana process a record-breaking $650 billion in stablecoin transactions
- The network now ranks second only to Ethereum in USDC supply across all blockchains
While Solana’s token price has experienced significant pressure since its exchange-traded fund launch in the US, underlying network metrics and capital flows paint a different picture.
The SOL token currently hovers around $88, representing a 57% decline from the July ETF launch price. The token has also retreated 70% from its January 2025 peak of $293, which occurred during a speculative memecoin trading frenzy.
Yet despite this substantial price deterioration, Solana-focused ETFs have accumulated $1.5 billion in net capital and retained nearly all of it, according to Bloomberg’s ETF specialist Eric Balchunas.
In a Thursday analysis, Balchunas highlighted that institutional investors represent 50% of total inflows, characterizing this as a “serious investor base.”
He emphasized that ETF products launching during such severe market downturns typically struggle to attract any capital whatsoever, and most funds would collapse if their underlying asset lost 57% of its value within the first six months of trading.
When normalized for relative market capitalization, Solana ETFs have effectively pulled in the equivalent of $54 billion in Bitcoin-adjusted terms—approximately double the comparative flow Bitcoin ETFs experienced at the same stage post-launch.
On Thursday, Solana ETFs experienced their first net redemption day in more than a month, with $6 million exiting the six available products. This followed a $19 million net inflow recorded Wednesday, based on CoinGlass tracking data.
Network Processes Unprecedented Stablecoin Activity
Beyond price movements, Solana’s blockchain infrastructure achieved a milestone $650 billion in stablecoin transaction volume throughout February 2026, as detailed in a Grayscale Investments research report.
This represents the highest monthly stablecoin transaction volume ever documented on any blockchain network, accomplished within just 28 days. The figure more than doubled the previous record established merely four months prior in October 2025.
According to Grayscale’s analysis, this volume stemmed primarily from SOL-stablecoin trading activity and genuine payment transactions, rather than speculative memecoin speculation.
Solana’s minimal transaction costs have enabled economically viable small-value transfers, attracting developers creating payment infrastructure and micropayment applications that would be economically unfeasible on networks with higher fee structures.
Climbing the Stablecoin Ecosystem Rankings
Solana currently maintains the fourth-largest total stablecoin supply among all blockchain networks. When examining USDC exclusively, it holds the second position, trailing only Ethereum.
Given USDC’s preference among institutional market participants, Solana’s runner-up status in this specific category represents a significant indicator for market observers.
Ethereum continues dominating tokenized real-world assets, processing $15.57 billion over the trailing 30-day period compared to Solana’s $2 billion, based on rwa.xyz analytics.
SOL has declined 2.7% in the past 24 hours and 11% over the past 30 days, according to CoinGecko data. The token last changed hands at approximately $88.40.
The March 12 deadline comes just days after the protocol was updated to the v19.9. Here’s what’s next.
Pi Network’s native token continues to defy the overall market moves, as the asset has charted gains even in the past 24 hours when bitcoin and most other altcoins have posted losses.
The most probable reason behind this disparity could be linked to the recent updates announced by the team, including a deadline for the next big one.
PI Rockets Above $0.20
It was less than a month ago, on February 11, when Pi Network’s token was digging new lows almost daily. The broader market’s crash pushed PI south hard, but it finally bottomed on that day at $0.1312. This meant that it had lost roughly 95% of its value since its all-time high marked on February 26, 2025.
However, PI reacted well to this crash and quickly jumped past $0.20. That level was too strong for the PI bulls, and it slipped back down to $0.16. Another leg up followed that culminated earlier today as the token skyrocketed to over $0.20 once again, charting a new three-week high. As of now, it trades over 50% above its all-time low seen less than a month ago.
Its market capitalization has climbed to well over $1.9 billion, which makes it the 44th-largest cryptocurrency by that metric. However, it’s worth noting that there are some worrying signs about its future price performance that could jeopardize its rally. Some of those include the massive number of tokens scheduled to be unlocked tomorrow and the RSI, which is now within an ‘oversold’ territory.
New Deadline Approaches
PI has demonstrated in the past that it tends to move mostly in line with some big announcements or updates from the team. Just earlier this week, it jumped by 9% daily after the implementation of the v19.9 protocol update. Now, they have set their sight to the next one, which they claim is currently in progress and could be the driver of PI’s latest gains.
At first, the team said they wanted to complete the v20.2 update by Pi Day 2026 (March 14), but they have moved up the timeline to March 12.
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Protocol upgrades in progress (Step 3 – Deadline: March 12): The Pi Mainnet blockchain protocol continues to undergo a series of upgrades. All Mainnet Nodes are required to complete this step before the deadline to remain connected to the network. Details here:…
— Pi Network (@PiCoreTeam) March 5, 2026
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Crypto World
Arthur Hayes Predicts Fed Money Printing From US-Iran Tensions Could Propel Bitcoin (BTC) Higher
Key Takeaways
- Arthur Hayes, BitMEX co-founder, believes extended US-Iran military engagement may compel the Federal Reserve to reduce interest rates and expand monetary supply.
- Historical precedent shows the Fed has injected liquidity during previous US military operations, according to Hayes.
- Escalating oil prices resulting from regional tensions could drive 10-year Treasury yields upward, potentially prompting Fed intervention.
- Bitcoin dropped from approximately $66,000 to $63,000 when tensions intensified but has since rebounded to the $73,000 level.
- Market observers identify $70,685 as crucial Bitcoin support, with near-term price objectives ranging from $75,000 to $80,000.
Arthur Hayes, who co-founded BitMEX and currently serves as chief investment officer at Maelstrom, believes the escalating US-Iran tensions may initiate a sequence of events culminating in Federal Reserve monetary expansion — potentially benefiting Bitcoin prices.
In analysis published Monday on his blog, Hayes explained how prolonged US military operations in Middle Eastern regions have historically compelled the Federal Reserve to implement rate reductions and inject market liquidity. He cited the 1990 Gulf War, post-9/11 global counterterrorism efforts, and the 2009 Afghanistan troop surge as illustrative examples.
“The cure, as always, is cheaper and more plentiful money,” Hayes noted in his analysis.
In a March 6 post on X, Hayes cautioned that sustained increases in Brent crude prices stemming from US-Iran hostilities could cause 10-year Treasury yields to surge dramatically. Such market turbulence would elevate the MOVE Index — which tracks US bond market volatility — creating what Hayes considers a “prerequisite” for Federal Reserve monetary intervention.
Brent crude has climbed approximately 20% since conflict intensification began, fueled by concerns about Middle Eastern supply constraints. Nevertheless, oil prices declined over 1% Thursday to approximately $80 per barrel following Trump administration announcements of price stabilization measures, including a 30-day exemption permitting India to maintain Russian oil purchases.
Implications for Bitcoin Markets
Hayes contends that Federal Reserve rate reductions or balance sheet growth would increase market liquidity, historically providing positive momentum for Bitcoin and comparable risk assets.
Bitcoin’s response to the military tensions has shown volatility. Prices declined from roughly $66,000 to $63,000 immediately following hostilities escalation. Subsequently, the cryptocurrency has recovered and recently reached a one-month peak of $73,000.
Hayes recommends awaiting definitive indications of Fed policy adjustments — either interest rate cuts or balance sheet expansion — before initiating Bitcoin or altcoin purchases. He has not advocated for immediate market entry.
Probability of a rate reduction at the Federal Reserve’s March 17–18 policy meeting remains minimal. CME Group’s FedWatch tool indicates merely 2.7% odds of a cut at that gathering. Most market observers anticipate the Fed will maintain rates within the 3.50% to 3.75% range.
Expert Technical Analysis
Cryptocurrency analyst Ali Martinez has pinpointed $70,685 as a critical Bitcoin support threshold. Maintaining that price level could facilitate a near-term advance toward $75,000–$80,000, according to market technicians.
Inflation pressures represent an additional consideration. Should inflation remain persistent, the Federal Reserve may possess limited flexibility for rate cuts, potentially constraining any immediate rally in risk assets like Bitcoin.
Hayes has offered comparable forecasts repeatedly in recent months. In January, he suggested potential US military operations in Venezuela as a probable catalyst for Fed monetary easing. Last month, he indicated an AI-driven financial crisis as the subsequent trigger.
In December, Hayes forecasted Bitcoin would reach $200,000 this month, referencing reserve management acquisitions announced by the Fed during that period.
Currently, Bitcoin maintains trading activity within the $70,000–$73,000 corridor, with markets monitoring both Federal Reserve communications and Middle Eastern geopolitical developments.
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Bitcoin-focused Solv Protocol was exploited on Thursday, resulting in roughly $2.7 million worth of funds drained from one of its token vaults. The project has offered a 10% bounty to the attackers.
Summary
- Solv Protocol lost about $2.7 million after an exploit drained 38 SolvBTC from one of its Bitcoin Reserve Offering vaults, with fewer than 10 users affected.
- Security researchers estimate that the attacker abused a double-minting flaw in a BitcoinReserveOffering contract.
- The project has offered a 10% bounty for the return of the funds.
Solv Protocol is a DeFi platform that allows users to stake Bitcoin through its Staking Abstraction Layer.
According to a post incident update, roughly 38 Solv Protocol BTC (SolvBTC), which the project uses for yield-generating and lending activities across its ecosystem, was drained from one of its structured yield vaults called Bitcoin Reserve Offerings (BRO).
Solv Protocol said that the incident impacted fewer than 10 users and added that it would compensate for the loss of 38.05 SolvBTC, which amounts to roughly $2.7 million.
While a full post-mortem of the incident is yet to be published, third-party security analysts believe the attacker was able to abuse a double-minting flaw in a BitcoinReserveOffering contract.
Per security firm Decurity’s automated bot, the exploiter was able to trigger the vulnerability 22 times, which allowed them to inflate 135 BRO into roughly 567 million BRO tokens before converting the funds into SolvBTC.
Meanwhile, a pseudonymous crypto researcher identified as Pyro described the incident as a reentrancy attack, a common exploit where repeated calls to a smart contract allow attackers to manipulate internal accounting before balances are properly updated.
In the meantime, Solv Protocol has offered a 10% bounty if the attackers return the funds to the designated address. Further, the project claims to be working with its security partners to patch the vulnerability.
At the time of publication, the attackers have yet to indicate whether they intend to return the stolen funds.
This is one of the several attacks that have targeted DeFi protocols of late.
Earlier in the week, Curve Finance’s sDOLA LlamaLend markets were exploited through a vulnerability tied to the pool’s oracle configuration, and the attacker reportedly made about $240,000 by manipulating the pricing mechanism using a flash loan to trigger liquidations.
In early February, the cross-chain liquidity protocol CrossCurve also lost roughly $3 million after attackers exploited a flaw in its smart contract that allowed spoofed cross-chain messages to bypass gateway validation and unlock funds from the PortalV2 contract.
Bitcoin price fell to near $70,000 on Friday following a sharp rebound the previous day. A looming BTC options expiry event is now keeping investors on edge as the market anticipates potential volatility.
Summary
- Bitcoin price has given up a portion of its gains from this week.
- Over $2.22 billion worth of options set to expire today have spurred concerns around volatility.
- Bitcoin technicals remain bullish despite the current drawdown.
According to data from crypto.news, Bitcoin (BTC) price fell 4.5% to an intraday low of $70,177 on Friday morning Asian time before stabilizing around $70,400 at press time. The bellwether pulled back after facing rejection around $74,000, a key resistance level it had failed to break for over a month.
Bitcoin price fell as investors began booking profits after climbing over 15% in the past 5 days.
This came amid a broader risk-off environment triggered by the ongoing war between the U.S. and Iran, which has led energy prices to soar to multi-month highs. The military escalation has also triggered capital rotation into traditional safe-haven assets, which have seen relatively better performance amid the geopolitical uncertainty.
Today, investor sentiment is being kept in check as $2.22 billion worth of Bitcoin option expiry is set to be settled on the Deribit exchange at 8:00 a.m. UTC. Over 31,500 Bitcoin open contracts are set to expire.
At press time, the put-to-call ratio was at 1.72, meaning put options or traders betting on Bitcoin to go lower far surpass the calls that are betting on a rise. The maximum pain level for BTC or the price at which most option contracts expire worthless stood at $69,000, just $1,400 short of the current spot price.
The maximum pain level, also known as the strike price, tends to pull spot prices towards the center around expiry. Therefore, there remains a high risk that Bitcoin price could pull back towards the $69,000 mark as options reach expiry.
Bitcoin has failed to hold above $70,000 six times since the start of February, and losing this key psychological support once again could spook short-term traders who were betting on the current recovery rally.
Despite the concerns surrounding the massive options expiry today, BTC price charts have not yet shown signs of a breakdown.
On the Bitcoin/USDT 24-hour chart, momentum indicators still portrayed a positive outlook at least in the short term.
Notably, the MACD line was pointing upwards, suggesting growing buying pressure for the bulls in comparison to the selling pressure exerted by bears. At the same time, the Relative Strength Index has also formed a bullish divergence with the price action.
For now, bulls will be eyeing $72,000 as the next major resistance level to claim, a break above which could likely end its downtrend today.
On the contrary, a move below the $70,000 support could pull BTC price to $69,000 and successively as low as $60,000 as the broader structure remains confined within a bearish flag pattern, which is considered one of the most negative formations in technical analysis.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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