Bitcoin price may consolidate as $2.2b options expiry looms, analysts warn

As Bitcoin approached the $70,000 mark on Monday morning, analysts at Bitfinex issued a cautionary note suggesting that the rally could be short-lived as a key option expiration looms.

Bitfinex analysts said they expect “potentially further downward pressure” on the Bitcoin (BTC) price as the approximately $2.2 billion monthly maturity date comes on August 2.

They suggest that this event could cause Bitcoin to pause or even pull back slightly at the $68,000-$69,000 resistance area. Despite the risk of a pullback, analysts emphasize that leveraged long positions are currently more effective than spot market activities.

“[…] “Therefore, while the market is in a strong higher time frame uptrend, a short-term price drop or range is likely and, if options market positioning is any indication, directional trades, especially leveraged, should be avoided,” Bitfinex said.

On Monday morning, Bitcoin traded at $70,000, a level not seen since June 7, before losing all momentum and falling below $67,000 in the afternoon trading session.

The broader macroeconomic environment

Regarding the broader macroeconomic environment, Bitfinex analysts described the economic outlook as “cautiously optimistic.” The analysts emphasized that the housing market remains a “drag on growth” due to higher-than-expected average home prices, which are impacting existing home sales.

As previously reported by crypto.news , July has historically been a positive month for Bitcoin. This year, the cryptocurrency has gained over 15% in the last 30 days and set a new record by recording more than $19 billion in inflows since the beginning of the year. Data from CoinShares shows that Bitcoin products received around $520 million in capital between July 22 and July 26, bringing Bitcoin’s inflows to over $3.6 billion for the year.