Pro Charts: Crypto

Bitcoin Pullback Does Little Damage To Bullish Chart Bias

Updated: Jun 08, 2024 | Published: Jun 08, 2024
Verified Investing
By Verified Investing
Bitcoin Pullback Does Little Damage To  Bullish Chart Bias

Bitcoin remains above the bullish channel. This past Friday Bitcoin did see its sharpest decline in three weeks. It coincided with a sharp jump in the 10 year yield and the U.S. Dollar after a stronger-than-expected jobs report.

However, many would argue that the decline stemmed more from the GameStop (GME) sharp drop. GameStop was up over 100% in just two trading days after Keith Gill scheduled his first Youtube live in years. However, the live left much to be desired and the stock collapsed over 50% from its pre-market highs. That sentiment hit could have triggered some selling in Bitcoin.

A more likely scenario was the futures options expiration that was this past Friday. With $2.2 billion in options expiring, institutions that sell a majority of options to investors did not want Bitcoin to close above $70,000. This would have triggered profits for investors who bought the $70,000 strike price calls. By driving price below $70,000, investors saw their options expire worthless and institutions netted big profits.

From a technical analysis perspective, Bitcoin is still bullish in spite of the pullback. The bullish probability will remain intact as long as price does not close below the upper channel line (top orange line) in the chart. The next upside resistance is the $73,900 all-time high.