• Bitcoin dropped to $87,162 after failing to hold $89,200, amid $14 billion options expiry.
• Aggregate BTC call options open interest hits 104,300 BTC ($9.12 billion), mostly above $91,000.
• Analysts increased year-end BTC call positions at $100,000–$112,000, signaling medium-term bullish optimism.

Bitcoin (BTC) dropped to $87,162 on Tuesday after failing to hold the $89,200 level reached the previous day, with traders assessing the effects of the $14 billion options expiry on Friday, against the backdrop of weakening private employment and reduced US consumer confidence.

Bitcoin​‍​‌‍​‍‌ has dropped slightly today, and currently trading at $86,935.10 and a decrease of 1.17% in the past 24 hours, with a market cap of $1.73 trillion, which is a clear indication of the confidence investors have in BTC despite the retraction. The trading volume has escalated to $62.75 billion, which is 11.14% more than before, thus attracting a lot of attention in the ​‍​‌‍​‍‌market.

Also Read | Bitcoin Price Crash Not Over Yet, Says CryptoQuant

Bitcoin Pulls Back to Key Support

Analyst Crypto TXG pointed out that the strength in Bitcoin against worldwide liquidity eased, even reaching a new high on the BTC/WM2NS chart. Bitcoin tested the 0.08 support area, an essential area in the short term. The maintenance of this support area is vital in ensuring the continuation of the overall trend.

If the 0.08 support level helps Bitcoin recover, the crypto could rally to the 0.09 area, indicating resumed momentum and bullish continuation. Traders are advised to stay updated on the announcements channel offered by Crypto TXG, which is accessed for free.

Bitcoin Call Options $100,000–$112,000 Show Optimism

Economic data has raised the prospect of Fed action. Weaker economic data, such as lower employment numbers, raise the prospect that the Fed could ease monetary policy. Gold was up 1.2%, and the Russell 2000 was up 1.9%, on expectations that the U.S. Treasury would provide some sort of liquidity.

There are reports that President Trump has signed the Genesis Mission executive order in an effort to encourage the development of artificial intelligence and minimize energy risks. Large-scale high-performance computing centers may overload the credit markets, leading to federal government assistance in supporting the economy. 

In the last 48 hours, Bitcoin traders have added positions in the year-end call options in the $100,000 to $112,000 range. While there was a weakness in the price, there are hopes and expectations among traders and investors that there could be a strong surge in the coming days. 

Analysts note the importance of the BTC response at major support levels in determining short-term trends. The constant watch on options expirations, economic data, and technical support/resistance levels has become important. Caution and the upside potential need to be weighed through this volatile period in the cryptocurrency markets, experts explain.

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