Bitcoin, 'All' Buyers at a Loss... Entering Fear Mode Again?

▲ Bitcoin (BTC)

Bitcoin (BTC) has fallen below the average purchase price for short-term investors, and tension is rapidly spreading throughout the market.

NewsBTC reported on May 2 (local time) that Bitcoin has fallen below the average purchase price for short-term holders, which is $78,900, causing a significant portion of recent buyers to enter a loss-making zone.

According to on-chain data, Bitcoin also broke below the $78,000 level, known as the 'realized market average price'. With recent buying failing to defend, the market structure is interpreted as leaning towards a bearish trend.

Amidst this trend, option contracts worth 23,000 BTC, approximately $1.74 billion, are set to expire. The market is paying attention to this expiration as a key variable determining short-term direction.

Bearish bets are also dominant in the options market. The put-to-call ratio is tallied at 1.10, indicating more positions favoring a decline than an increase.

The $76,000 range, known as the maximum pain price, is identified as a key turning point. This is the price level at which option contracts expire with the greatest loss, and it is close to the current market trend.

The lower support range is suggested to be between $65,000 and $70,000. If it falls to this range, short-term investor losses will expand, potentially leading to additional selling pressure.

Along with option expiration, macroeconomic variables are also pressuring the market. The rise in the US Personal Consumption Expenditures (PCE) price index, coupled with geopolitical tensions, has led to a selling trend across risk assets.

If Bitcoin faces option expiration without recovering key price levels, a contraction in short-term investor sentiment is an unavoidable outcome.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*