Bitcoin (BTC) Flirts With $70,000 as Bitfinex Analysts Issue Cautionary Note, Suggesting the Rally Might Be Short-Lived

Bitfinex analysts predicted in a note that they expect “potential further downward pressure” on the price of Bitcoin (BTC) as the monthly expiry of around $2.2 billion is set to occur on Aug. 2.

Bitcoin price showed signs of stalling on Monday after surging past the $70,000 mark earlier in the morning session. The rally appeared to lose steam as the day progressed, with BTC trading below $67,000 by the afternoon trading session.

Meanwhile, analysts at Bitfinex suggested that the rally might be short-lived due to an impending significant options expiry. They predicted that the expiry of around $2.2 billion in options on Aug. 2 could put downward pressure on the price of Bitcoin.

According to Bitfinex, this event might cause Bitcoin to stall or pull back slightly from the $68,000-$69,000 resistance zone. However, they highlighted that leveraged long positions are currently more influential than spot market activities.

“[…] thus while the market is in a firm higher timeframe uptrend, a short-term price decline or range is likely, and if the options market positioning is any indication, directional trades, especially leveraged should be avoided,” Bitfinex noted.

Bitcoin price surged past the $70,000 mark on Monday morning, a level not seen since June 7. The rally appeared to be driven by optimism over the broader macroeconomic environment and the upcoming merger of Ethereum.

However, BTC price lost all momentum and was trading below $67,000 by the afternoon trading session. The pullback occurred as the broader stock market also showed signs of stalling.

After a strong start to the year, the S&P 500 has now fallen for three consecutive weeks, largely due to concerns over inflation and the Federal Reserve’s plan to begin unwinding its pandemic-era stimulus.

Despite the pullback, BTC price is still up over 15% in the last 30 days and has recorded more than $19 billion in year-to-date inflows.

According to data from CoinShares, Bitcoin products received nearly $520 million in capital between July 22 and July 26, pushing Bitcoin’s inflows past the $3.6 billion mark for the year.

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