) price has dropped more than 4% in the last 24 hours, losing all the gains it made after Grayscale's victory against the US earlier this week. As of the time of writing, Bitcoin is trading at $26,035 with a market value of $507 billion.
Why is Bitcoin Falling?
Bears in Bitcoin continue to gain an advantage with the US SEC's decision to delay seven spot Bitcoin ETF applications from BlackRock,Fidelity, Invesco, and other companies. Although the BTC price surpassed the significant upward resistance of the 200-day moving average of $27,500, it failed to hold and experienced another sharp drop.
On the downside, the Bitcoin price seems ready to retest the $25,000 support level in the near term. During the Bitcoin price pump earlier this week, crypto analyst Ali Martinez mentioned the possibility of BTC price manipulation. The recent price correction confirms his theory.
Technical analysis alone cannot uncover the intricacies of market manipulation! Therefore, a comprehensive approach that combines on-chain and technical analysis provides the deepest insights.
Bitcoin Commentary
According to data from Greeks.live, a total of 26,000 Bitcoin options will expire later today. The Put-Call Ratio, which compares the number of put options (predictions on price decrease) to call options (predictions on price increase), stood at 0.50.
The "maximum negativity point" is defined as the price at which most option contracts will expire worthless, and in this case, it is at $27,000. The total value of all these option contracts, also known as notional value, is $690 million.
Bitcoin continues to show weakness on the technical chart. September may be a month of significant decline for Bitcoin. As we can see in the technical chart below, the BTC price may consolidate around the $26,000 level for a while before a possible collapse. On the other hand, analysts are not very hopeful about Bitcoin reaching its highest levels of 2023 this year. It would be interesting to see how BTC performs in the coming days.
