Traders are expecting a significant increase in Bitcoin price as options expiry approaches today. BTC, currently trading at $61,657 with a market cap of $1.2 trillion, has seen a downtrend in June. Analysts are predicting the potential for an upside move.
Bitcoin downtrend faces possible reversal as analysts predict significant breakout if market stability occurs
According to CoinGape, Bitcoin (BTC) price has been declining continuously in June and has failed to sustain above $62,000. Bitcoin’s market cap is $1.2 trillion and is trading at $61,657 at the time of writing. Bitcoin price has been declining by almost 5% every week. Nevertheless, a well-known market analyst, Rekt Capital, believes that Bitcoin price is about to witness a significant breakout from the June downtrend.
In a recent analysis, Rekt Capital predicted that the ongoing downtrend in BTC price is nearing its conclusion. Furthermore, he highlighted that the continued price stability could exacerbate the potential for a breakout in the future.
Rekt Capital has observed that in the context of the current daily price action, Bitcoin (BTC) is exhibiting an early-stage bull flag pattern, indicated by the orange band. If this pattern gains momentum, Bitcoin has the potential to challenge the June downtrend and make a significant upside breakout.
CoinGape has reported that Bitcoin bears are currently in a dominant position in the market and influencing the BTC price. Several market analysts believe that the BTC price could see another correction from its current levels given the capitulation of miners.
Bitcoin nears critical support as 22% correction looms, $6.6 billion options expiry in focus
Rekt Capital has also stated that BTC’s current price decline is approaching the typical 22% correction observed throughout the market cycle. This correction also shows a positive initial reaction that is consistent with the support levels of previous all-time highs.
Rekt Capital stressed that while downward swings below the pattern bottom (marked in orange) are allowed, it is imperative that the Bitcoin price closes within the structure each week to maintain this support level.
However, if the BTC price drops to $60,700, there could be significant liquidation. According to renowned analyst Ali Martinez, the BTC price could fall below this threshold and $22 million could be liquidated.
Additionally, traders are closely watching today’s Bitcoin options expiry with $6.6 billion worth of contracts at stake.
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