In an impressive show of strength, Bitcoin’s price briefly went above $31,000, and technical analysis shows that it looked to stay there as the second quarter closed. Speaking of ending the second quarter, June 30 seemed to be a key date for Bitcoin for two reasons.
On that date, US Personal Consumption Expenditures (PCE) data was released, and nearly $6 billion in Bitcoin options are about to expire. Bitcoin options are the assets’ derivative instruments with a deadline. To put it simply, the deadline is important as a great number of Bitcoin transactions would happen with each side of the derivatives contract attempting to settle their Bitcoin debts.
As the two events share the same date, BTC/USD hit a local high of $31,268. Market analysts also paid close attention to key price levels. A close above $29,255 would confirm a breakout on the monthly timeframes, with quarterly resistance now forming at $28,872, claims popular trader Rekt Capital.
In fact, this level has been very important for cryptocurrency in the past. In Q1 2023, it was a point of resistance (a kind of price ceiling), and in Q1 2021, it was a point of support (a kind of price floor). During the first half of 2023, Bitcoin’s price went from $16,000 to $30,000, which was a big step forward.
Paying attention to key price levels allowed traders to make similar trading decisions en masse, resulting in significant moves either upwards or downwards.