Today, the crypto market is abuzz as a staggering $2.04 billion in Bitcoin (BTC) and Ethereum (ETH) options are set to expire, sparking excitement among traders and investors.
The expiration of these crypto options typically results in heightened price fluctuations, making it a pivotal moment in the market. Traders are closely monitoring the developments surrounding today's expiration to capitalize on potential market movements.
For Bitcoin, expiring options amount to $1.62 billion, consisting of 16,561 contracts with a put-to-call ratio of 0.76 and a maximum pain point of $98,000. On the other hand, Ethereum sees 153,608 contracts expiring, totaling $421.97 million with a put-to-call ratio of 0.48 and a max pain point of $2,700.
As Bitcoin currently trades at $98,215 with a slight increase of 1.12%, and Ethereum at $2,746 with a 0.20% decrease, the options market indicates a preference for purchase options (calls) over sales options (puts) based on the put-to-call ratios.
Analysts foresee a potential minor correction as the expiration nears, aligning with the max pain theory that suggests prices gravitating towards strike prices to render options worthless. This anticipation of market movement has evoked a cautiously bearish sentiment among traders, highlighting the importance of key price levels.
Bitcoin's price outlook hovers around critical demand and supply zones, offering potential support and resistance levels. While BTC faces resistance around $103,991, marking a historically significant selling pressure point, it seeks support within the $93,700 to $91,000 range.
Despite the short-term bearish trend indicated by forming lower highs and lows for BTC, recent price action hints at a possible reversal as it attempts to bounce off the demand zone. The RSI's neutral momentum suggests an equilibrium between buying and selling interest, providing a nuanced outlook for BTC's price trajectory.
With scenarios pointing towards a push towards the $100,000 milestone if support holds or a potential downward move below $91,000 triggering a test of lower price ranges, traders are poised for a decisive market movement following the expiration of the options contracts.