Bitcoin's Price Has Risen to $20,000 on the Liquidation of $422 Million in BTC Options
- Bitcoin's price briefly fell below $20,000, and almost $422 million in long and short bets were liquidated.
- BTC fell to a five-week low in response to the week's events, yet whales continued to accumulate Bitcoin.
- According to analysts, numerous Bitcoin whales have purchased call options with a strike price of $25,000 expiring in April.
The bankruptcy of Silicon Valley Bank caused a drop in the price of bitcoin. Bitcoin has plunged to a five-week low, falling below the psychological threshold of $20,000.
Bitcoin's price has risen beyond $20,000 for the first time
According to Chinese journalist Colin Wu, numerous Bitcoin whales were detected buying $25,000 strike call options for April expiry and selling the same strike call options in the June expiration.
After a five-week low below the psychological milestone of $20,000, Bitcoin has risen above the crucial price level. Throughout the last 24 hours, the incident sparked $422 million in liquidations, with BTC's long holdings accounting for 86.2% of the total.
Baro Virtual, a cryptocurrency analyst at CryptoQuant, examined the Bitcoin price trend and indications and concluded that bears have been in charge since March 2. Despite cool-off moments, bears have consistently driven Bitcoin prices down with distribution.
The expert urged traders to be on the lookout for a domino effect from the now-defunct FTX exchange and the US governmental onslaught on Bitcoin. The growing level of uncertainty in the cryptocurrency market suggests that seller weariness is not far away, and traders should proceed with care.
According to Coinglass statistics, open interest in Bitcoin has dropped roughly 10% in the previous ten days, a considerable reduction since the FTX exchange crash.