The crypto market pushes further down and seems poised for more losses as Bitcoin touches the low of its current levels. The number one crypto by market cap approaches a major support level, and if bulls failed to protect it, BTC’s price could return to its 2020 range.
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At the time of writing, Bitcoin (BTC) trades at $21,800 with a 5% and 29% loss in the last 24-hours and 7-days, respectively. BTC’s price began to trend lower as a result of a series of bad news around major crypto companies, and the U.S. Federal Reserve (FED) shift to its monetary policy.
The general sentiment in crypto is fear as market participants are prepared for further losses. According to crypto exchange BitMEX Co-Founder Arthur Hayes, investors are hedging against downside price action by buying put (sell) options contracts.
Here we go …
— Arthur Hayes (@CryptoHayes) June 14, 2022
Hayes claims that options platforms Deribit record a high Open Interest (OI), total open options contracts, for Bitcoin at $20,000 and for Ethereum at $1,000. In addition, Hayes believes other “massive” investment vehicles could be “centered around those strikes”, around those specific price levels.
In that sense, $20,000 seems like a critical support level for Bitcoin. This price point coincides with…