Bitcoin (BTC) Teeters at $112,000: Will This Key Support Level Hold?

What was generally an up-day for Bitcoin on Wednesday only took the alpha cryptocurrency 2% higher. Thursday has dawned and the $BTC price has lost yesterday’s gains and is teetering at the edge of losing the very important $112,000 horizontal support level. Could the price drop again, or will this large structural support provide a turning point?

One of the largest weekly options expiries ever

If Bitcoin does lose the $112,000 horizontal support during the day on Thursday, a chasm could open up below. With this in mind, Friday has the potential to be a huge day. One of the largest weekly option expiries in the history of crypto will take place. It is estimated that between $18 billion to $23 billion in Bitcoin and Ethereum contracts will expire.

This upcoming expiry is likely to be 4 times the size of last week’s ‘triple witching’ event. Therefore, volatility spikes both up and down could serve to liquidate any traders courageous, or foolhardy enough to be making trades on such a day.

The $BTC max-pain point is at $112,000 down to $107,000, where most options would expire worthless, thereby maximising the pain for holders. Look for $BTC to potentially make a local bottom during this period of uncertainty.

Bulls and bears battle over key support level

Source: TradingView

Zooming into the short-term 4-hour chart once can observe the battle that is taking place between the bulls and the bears over the $112,000 horizontal support level. Numerous attempts have been made in this time frame to drop this level, but up to now it is continuing to hold. That said, at the time of writing, a new candle has just opened below. If this doesn’t get bought back up above the support level, this could be the first crack opening in the dam.

The Stochastic RSI indicators are on their way down. This could add downside momentum if the price does fall from here. The RSI, right at the bottom of the chart, saw its indicator reject from the descending trendline. The omens on this short time frame do not look good.