• Bitcoin bears are pushing the price below $27,000 ahead of Friday’s $900M options expiry.
• The BTC/USD pair broke above $29,800 on May 6 but the resistance proved to be stronger than expected and a two-day correction was seen.
• Warren Buffett is no longer optimistic about U.S. economic growth which might explain why some Bitcoin traders are reducing exposure over the past week.
Bearish Pressure Ahead of Options Expiry
Bitcoin bears are placing pressure to push the price below $27,000 ahead of Friday’s $900M options expiry. If successful, this could play a decisive role in determining whether the price will succumb to slipping below this mark or not.
Recent Price Movement
The BTC/USD pair attempted to break above $29,800 on May 6 but encountered resistance that proved too strong for it to overcome resulting in an 8.2% two-day correction that tested the support at around $27,400 favoring sideways trading as investors evaluate macroeconomic conditions and its potential impact on cryptocurrencies.
Warren Buffett’s Stance
Billionaire investor Warren Buffett has become less optimistic about US economic growth which might explain why some Bitcoin traders have been reducing their exposure over the past week. This reduces the chances of breaking through the important $30,000 mark for BTC/USD pairs in the near future.
Bulls’ Over Optimism
Bulls were excessively optimistic after Bitcoin’s price rallied 11.2% between April 9 and April 14 testing resistance at around $31,000 leading up to this week’s option expiry with an open interest of $900 million however actual figures may be lower due to bearish expectations for prices falling below $28,000 in this period leading up to expiration day.
It remains unclear how much influence option expiries will have on Bitcoin prices over the coming days however bearish pressure from macroeconomic headwinds and uncertainty caused by transaction fee spikes could see prices fall even further if bulls fail to maintain momentum against them leading up to expiration day on Friday 12th May 2021