The price and the market trend of BTC have been very confusing lately. This is mainly because there is not a clear path for the crypto asset currently, and both the bullish and bearish trends have had their fair share of appearances in the charts during this timeframe.
After the price of Bitcoin came down to $55k, due to the selling pressure, the crypto asset finally gained back its strength and started trading around the price of $59.5k. The crypto market, however, is still volatile, and there is a chance that by the end of this month, there might be a significant change in the value of BTC either above or below its key price range.
Why is 26th March so important for Bitcoin?
The major factor of why this date is so important for BTC is the market of derivatives, specifically Options. The open interest characteristic of the Options market is the determinant that pushes the active contract numbers and also represents the ratio of the liquidity at various expiration dates.
26th March 2021 is important because it is the closest expiry date related to major Options, and after the expiry date, the market is going to endure a change in the price of BTC as a consequence and that new price may be higher or lower than its current range.
What happened after the expiry dates in the past?
After the last two quarterly expiry dates, growth was reported, and this growth started a bull run for BTC, which eventually helped it cross its highest price of that time period which was $20k. After the expiry of contracts on 25th December 2020, BTC started off with another bull run and secured the price tag of $50k just in the time span of two months.
The open interest on Bitcoin Options ending on 26th March is greater compared to any expiry period recently. This data is suggestive of the fact that this might be the most liquid date attached to the derivatives market. Only ten days remain till the day of reckoning for Bitcoin, and there is also a very strong possibility that the Bitcoin market might not go in the upward direction, but time will tell if this movement in price would be good or bad for BTC.