Up until April 25, Bitcoin bulls had been defending the $38,000 level, but bulls were caught off-guard by the recent drop.
Regulatory concerns continue to pose a threat to Bitcoin and on April 26, the New York State Assembly passed a bill banning new proof-of-work cryptocurrency carbon-based mining facilities in the state.
For instance, if Bitcoin’s price stays below $40,000 at 8:00 am UTC on April 29, only $60 million worth of these calls options will be available.
Bitcoin bears need to pressure the price below $39,000 on April 29 to secure a $350 million profit.
Bitcoin bulls had $330 million leverage long positions liquidated in the past seven days, so they might have less margin required to drive Bitcoin price higher.