Inflation After Oil Prices?...Bitcoin Faces Mounting Downward Pressure 'Up to Here'

▲ Bitcoin (BTC)/AI generated image

Ahead of the release of the U.S. Consumer Price Index, the virtual asset market is showing volatility, converging to the Max Pain point, which is the key price level for options expiry.

Cryptocurrency specialized media CoinGape reported on April 10 (local time) that major virtual assets, including Bitcoin (BTC), are facing downward pressure amid Wall Street's inflation warnings. Wall Street expects this Consumer Price Index to record 2.9%, as anticipated. Market vigilance has heightened with the mention of the Federal Reserve's (Fed) potential to maintain hawkish monetary policy.

Bitcoin's Max Pain price is set at $70,000. Max Pain refers to the price level where the largest number of investors incur losses at options expiry. Bitcoin recently attempted to break through the $72,000 resistance level but failed, and is now adjusting its price towards the $70,000 mark. As the options expiry date approaches, a phenomenon is observed where the price reverts to the Max Pain point.

Ethereum (ETH) and XRP are also affected by the Max Pain price. Ethereum's Max Pain point is $2,150, and XRP's is $1.40. Ethereum recently showed an upward trend but gave back its gains, facing selling pressure in the options market. XRP also failed to digest selling pressure near its peak and may see its price adjust towards the $1.40 level.

Solana (SOL) is testing support near its Max Pain price of $84. Solana showed a short-term recovery, but inflation concerns are exerting downward pressure on risk assets across the board. Experts analyze that if higher-than-expected inflation data is released, the virtual asset market could converge to the Max Pain price and undergo further adjustments.

The Fear & Greed Index for the virtual asset market is at 11, indicating an extreme fear stage. With the slowdown in capital inflows into spot ETFs, institutional investors are maintaining a wait-and-see attitude, awaiting the release of macroeconomic indicators. This week, where options expiry and economic indicator releases overlap, is expected to determine the future direction of the market.

*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.*