The bitcoin price could face a further pullback to $100K as headwinds line up. This time, a significant factor is from the Bank of Japan (BOJ), as the core inflation rate accelerated to a 2-year high at 3.7% from 3.5% earlier.
Bitcoin is already under pressure today due to geopolitical tensions in the Middle East, with the US preparing to strike Iran, keeping traders at bay. Also, $4 billion in Bitcoin and Ethereum options expire today on the largest derivatives crypto exchange, Deribit.
Bitcoin fell below the 50-DMA (blue) today and hinted at further pullback amid various headwinds holding back a rally to $110K. Traders are also eyeing the quarterly options expiry next Friday, with max pain at $100K.
If the price closes below the 50-DMA today, a negative sentiment in the broader crypto market could build up. A massive 28% decline in trading volume over the last 24 hours supports it. The BTC price will likely fall to the next support at $103.1K, the 28.6% Fibonacci retracement level.
However, the price could continue to move sideways if institutional investors continue buying Bitcoin ETFs and companies add BTC to their treasuries.
According to CoinGlass data, derivatives trading remained mixed in the last 24 hours. The total BTC futures open interest dropped 0.70% over the last 24 hours but jumped 0.15% in the past hour.
Meanwhile, new money is drying up in Bitcoin, as per CryptoQuant on-chain data. Bitcoin demand momentum and total supply by age metrics indicate that the demand for spot BTC has dropped. Notably, short-term holders now hold 4.5 million BTC, down 0.8 million since 27 May. The demand momentum also drops to –2M BTC, the lowest level ever recorded.
Also Read: Micro Bitcoin Purchases Trend Worldwide: US, UK, and Japanese Firms Join
