- **Bitcoin's Pre-Halving Retrace**: Analysts suggest Bitcoin is in its typical pre-halving retracement phase, mirroring historical patterns. BTC's price trajectory aligns with the five phases observed in previous halvings.
- **Bitcoin Liquidations Surge**: Notable movement in the Bitcoin futures market is evident through increased liquidations. Long liquidations coincide with heightened volatility, indicating significant market activity.
- **Impact of Derivatives**: Cryptocurrency experiences a downturn as derivatives traders initiate liquidations of substantial options and futures contracts, amounting to hundreds of millions of dollars.
- **Options Expiration Pressure**: Continuing price declines coincide with a large volume of August Bitcoin options contracts expiring out of the money this week, signifying contracts that end without yielding profits.
- **Out-of-the-Money Options Trigger Futures Liquidations**: The expiration of out-of-the-money options prompts the liquidation of Bitcoin futures, initiating a feedback loop where declining crypto prices, unprofitable options expirations, and futures liquidations intensify downward pressure on prices. ๐๐ธ๐
