Bitcoin at the historical threshold: Will the 4-month decline repeat after 8 years?
The financial market is holding its breath watching Bitcoin as this currency stands on the verge of recording its fourth consecutive month of decline – a phenomenon that is extremely rare and has not occurred since the 2018-2019 period. Currently hovering around 87,000 USD, Bitcoin has undergone a deep correction of about 36% since the peak in October. Remarkably, even during the harsh 'winter' of 2022, the decline did not last more than three months, indicating the unusual level of selling pressure currently.
However, support from the derivatives market is sparking hopes for a last-minute rebound. Data from #Deribit shows that the expiration of options worth 8.5 billion USD on January 30 could be a critical bottleneck. With the 'Max Pain' price sitting at around 90,000 USD, the market is being pulled towards this threshold as the expiration date approaches. Investors need to accompany data analysis on-chain rather than just looking at spot prices. Engaging in trading activities in the last week of January will require heightened alertness to avoid liquidity traps. Although the prolonged red candle sequence exerts psychological pressure, the significant focus on call options at 100,000 USD indicates that a large segment of bulls is still betting on the long-term future of this asset. $BTC
