Bitcoin price is under pressure with news like next week’s Fed meeting and expiring options contracts. The price is spending time below critical supports as the momentum gained on July 13 is cooling off.
Bitcoin will price these developments next week
The crypto market is cooling off the momentum gained by the July 13 victory of Ripple. Bitcoin price briefly rallied on Friday before losing $30,000 again. It is currently moving sideways below this level.
Ethereum (ETH) has been largely stable throughout the day. It continues to spend time below the weekly low of $1,900. Major altcoins, including SOL and XRP, have recovered some of the losses they endured earlier in the day. Meanwhile, the market’s total value dropped to the region of 1.16 trillion.
With the US central bank Fed’s interest rate decision next week and the expiration of Bitcoin options, it doesn’t look like it will activate the markets that have been stuck for weeks.
The next Fed rate decision meeting will be held on July 25-26. The critical interest rate decision will be announced on July 26 at 21:00.
$31,500 is critical before options contracts
Rachel Lin, CEO and co-founder of SynFutures, stated that the week started enthusiastically with a positive decision in the Ripple-SEC case. However, BTC and ETH failed to break through the resistance and returned to their weekly lows, putting the market under pressure.
Lin, whose options contracts expire, said, “Bitcoin options data reveals high open interest on the $31,000 and $32,000 Call Options. It shows strong resistance at these levels. The other day was more positive, with call options trading about 3 times the volume of put options,” he says.
The expert later said, “Basically, the outlook remains bullish as money continues to flow into the crypto ecosystem. This could represent a short reversal that could potentially lead to a move up to $34,000 if BTC achieves a sustained break above $31,500.”
Corporate attention attracts whales
Whale transactions worth over $1 million have increased significantly since the announcement of BlackRock’s spot Bitcoin ETF application, according to data from Santiment. A recent Santiment report, which we quoted as Kriptokoin.com, showed that the June rally largely coincided with the ETF news.
Last month’s rally saw the number of transactions jump to 2983, a year high. As the price of BTC rises, the move is interpreted by whales as buying pressure. However, the sudden increase in the number of transactions in July caused a decrease in prices due to selling pressure.
As investors increased their holdings, the total number of whale addresses, i.e. wallets with more than 1,000 BTC coins, increased. The whale count reached 1,686 on July 7. This was the highest level since FTX’s explosion in November 2022. However, the number has dropped due to the recent wave of sales. According to Glassnode, there were about 1,678 whales on the market at the time of this writing. This represents an increase of more than 2% since last month.
10-year BTC wallets that have been active again recently also require close monitoring.
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