The crypto market continues to push down and seems to be prepared for further losses. The number one cryptocurrency by market capitalization is approaching an important support level, and if the bulls fail to protect it, the BTC price could return to the 2020 range.
At the time of writing, Bitcoin is trading at $21,500, with a loss of over 5 and 29 percent over the last 24 hours and 7 days, respectively. The price of BTC began to trend down due to a series of bad news surrounding large crypto companies and the change in the monetary policy of the US Federal Reserve (FED).
The general mood in the crypto world is fear. According to the co-founder of the crypto futures exchange BitMEX, Arthur Hayes, investors hedge against falling prices by buying put options (sell options).
Hayes claims that options platforms such as Deribit have a high open interest (OI), i.e. a total of open options contracts, for Bitcoin at $ 20,000 and for Ethereum at $ 1,000. In addition, Hayes believes that other “massive” investment vehicles could be centered around these specific price levels.
In this sense, $20,000 seems to be a critical support mark for Bitcoin. This price point coincides with the peak of the bull market in 2017.