In summary
$2.04 billion worth of Bitcoin and Ethereum options are expiring today, raising concerns about volatility. The maximum pain point for BTC is $98,000, while for ETH it’s $2,700.
A cautious sentiment prevails, with BTC struggling at key resistance levels. Traders are watching the $96,500 support level, concerned about low volatility.
Bitcoin is fluctuating near $98,200, facing resistance at $103,900. A drop below $91,000 could trigger a sharp sell-off to $85,000.
Promo:
Trade on BYDFi and get a chance to win prizes like an iPhone 16, a Rolex watch, and more!”
“Today, approximately $2.04 billion worth of Bitcoin (BTC) and Ethereum (ETH) options are set to expire, creating significant anticipation in the cryptocurrency market.
The expiration of cryptocurrency options often leads to considerable price volatility. Therefore, traders and investors are closely monitoring the developments of today’s expiration.
Options Expiration: $2.04 Billion in BTC and ETH Contracts Expiring
The Bitcoin options expiring today have a notional value of $1.62 billion. There are 16,561 contracts expiring with a put/call ratio of 0.76 and a maximum pain point of $98,000.”
On the other hand, Ethereum has 153,608 contracts with a notional value of $421.97 million. These expiring contracts have a put/call ratio of 0.48 and a maximum pain point of $2,700.
At the time of writing, Bitcoin is trading at $98,215, up 1.12% since the Friday trading session opened. Ethereum is trading at $2,746, down 0.20%. In the context of options trading, a put/call ratio below 1 for both BTC and ETH indicates a prevalence of call options over put options.
However, according to the maximum pain point theory, the prices of Bitcoin and Ethereum may gravitate towards their respective strike prices as the expiration time approaches. This would cause the majority of options to expire worthless, thus inflicting “maximum pain.” This means that BTC and ETH prices could see a slight correction as the options near expiration at 8:00 AM UTC on Deribit.
This explains why analysts at Greeks.live have noted a cautiously bearish sentiment in the market, with low volatility frustrating traders. They suggest that there is ongoing apprehension among traders and investors, especially surrounding Bitcoin, with traders closely watching key price points.
“The group sentiment is cautiously bearish, with low volatility frustrating traders. Members are watching the $96,500 level with skepticism about upward momentum, while discussing the possibility of a volatility cluster as low as 40%,” the analysts wrote.
Elsewhere, Deribit cautioned that while low volatility may seem safe, this sense of security is only temporary, as the market typically doesn’t wait long.
Bitcoin Price Outlook: Key Levels and Market Prospects
Bitcoin is trading around $98,243, hovering above a crucial demand zone between $93,700 and $91,000. This area has previously acted as strong support, suggesting that buyers may step in to defend these levels.
On the other hand, a key supply zone is located around $103,991, where selling pressure has previously been intense. BTC has struggled to break through this level, making it a significant resistance to watch.
“From a price action perspective, BTC has formed lower highs and lower lows, indicating a short-term downtrend. However, recent price movement suggests a potential reversal, as BTC is attempting to bounce off its demand zone.
The volume profile also shows significant trading activity near $103,991, reinforcing the resistance level. Meanwhile, a notable low-volume area near $91,000 suggests that if BTC breaks below this level, a sharp decline could occur due to a lack of strong support.
Meanwhile, the Relative Strength Index (RSI) is currently at 50.84, indicating neutral momentum. Although BTC is neither overbought nor oversold, the slight upward trend of the RSI could signal increasing buying interest.
If Bitcoin holds above the $93,700 support zone, it could attempt a push towards the $100,000 mark. However, a break below $91,000 could trigger a further decline, potentially testing the $88,000 to $85,000 range.
All information on our website is published in good faith and for general informational purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk, and they should re-evaluate it."
Read more: If you need a product to assist with tax issues and portfolio management in crypto, check out CoinLedger
