Bitcoin Drops 3% After Failed $112,000 Attempt
1min read Bitcoin has recently experienced a significant rally, reaching an all-time high of $111,880. However, this bullish momentum has been followed by a pullback, with the cryptocurrency's price dropping to around $108,000. This retracement occurred after an unsuccessful attempt to maintain levels above $112,000, leading to a further decline below $107,000. The support zone near $98,000–$100,000 is considered crucial, as a break below this level could trigger additional downward movement toward $85,000.
The recent pullback coincides with broader macroeconomic uncertainty and the formation of a bearish engulfing candle, which is often interpreted as a potential sign of a trend reversal. Despite these concerns, institutional interest in Bitcoin remains robust. BlackRock’s iShares Bitcoin Trust (IBIT) has accumulated $20 billion in notional open interest, indicating significant involvement from Wall Street. The total options open interest stands at $65 billion, with traders anticipating that Bitcoin could reach $116,000 or $120,000 in the coming weeks.
From a technical perspective, Bitcoin needs to reclaim the $108,400–$108,650 zone to regain its bullish momentum. If this does not occur, the next support levels are at $107,077 and $105,905. The Moving Average Convergence Divergence (MACD) indicator is showing a bearish crossover and expanding red histogram bars, suggesting a need for caution. The expiry of 25,000 BTC options worth $2.81 billion today is expected to add to short-term volatility. The put/call ratio for today is 1.22, which is bearish in the near term. The "max pain" level, where most options expire worthless, is at $104,000, indicating a potential for further decline if momentum does not rebound soon.
Most of the market's focus has shifted to the June 27 expiries, which now account for over 30% of total open interest. Analysts view this as a sign of deeper institutional positioning and expectations of increased volatility ahead. The options market is bullish in the medium term, with Deribit’s order book showing $23 billion in call options versus $13.9 billion in puts. The skew is heavily in favor of upside bets, particularly for the June expiry, where large positions are being built at strike prices between $110,000 and $130,000.
In summary, while BlackRock’s $20 billion Bitcoin ETF exposure and record high options interest suggest that Bitcoin’s long-term trend is upward, short-term caution may be warranted before the next breakout. Technical pressure is building, and key options expiries are in play, which could lead to increased volatility in the near term. 
