$2 Billion Bitcoin, Ethereum Options Expiry Signals Market Volatility
Today, about $2.04 billion worth of Bitcoin (BTC) and Ethereum (ETH) options will expire, creating significant expectations in the cryptocurrency market.
Expired encryption options usually lead to famous prices volatility. Therefore, traders and investors closely monitor developments that are due today.
Option Expiration: $2.04 billion in BTC and ETH contracts expire
The nominal value of the Bitcoin option expires today is $1.62 billion. The 16,561 expiring contracts have a fit ratio of 0.76 and a maximum pain point of $98,000.
On the other hand, Ethereum has 153,608 contracts with a nominal value of $421.97 million. These expired contracts have a callable ratio of 0.48 and a maximum pain point of $2,700.
Bitcoin trading while writing $98,215It has increased by 1.12% since Friday’s meeting opened. Ethereum trades at $2,746marking a 0.20% reduction. exist Options Tradingthe proposed ratios of BTC and ETH below 1 indicate the prevalence rate of sales options (puts) for purchase options (call).
However, according to the maximum pain theory, Bitcoin and Ethereum prices may tend toward their respective strike prices as expiration approaches. Doing so will cause most options to expire without value, causing “maximum pain”. This means that BTC and ETH prices can be made smaller corrections, as options expire at 8:00 am on Deribit.
It explains why analysts in Greek. Live points to cautious bearish feelings in the market, while low volatility traders are frustrating. They recommend continued attention from traders and investors, especially around Bitcoin, where traders monitor key prices closely.
“The group sentiment is cautiously bearish, low volatility is frustrating traders. Participants are watching the $96,500 level while discussing the possibility of low volatility clustering, about 40% or so.” Write.
Elsewhere, deribit warn Although low volatility feels safe, this sense of security is only temporary, as the market often doesn’t wait for a long time.
Bitcoin price outlook: key levels and market outlook
Bitcoin trades at around $98,243, hovering between $93,700 and $91,000. The field has been strong before, showing that buyers can step in to defend these levels.
On the other hand, the location of the key supply zone is about $103,991, which has historically been under a lot of sales pressure. BTC has been working hard to surpass this level, making it the primary resistance to viewing.
From a price action perspective, BTC has been forming lower highs and lower lows, indicating a short-term bearish trend. However, recent price movements suggest a possible reversal as BTC is trying to rebound from its demand zone.
The roll profile also shows a large amount of trading activity close to $103,991, thereby enhancing the resistance level. Meanwhile, a noticeable low volume area approaching $91,000 suggests that if BTC breaks below this level, it may drop sharply due to the lack of strong support.
at the same time, Relative Strength Index ((RSI) is currently 50.84, indicating neutral momentum. Although BTC is not overbought or oversold, a slight uptrend in RSI may mean increased buying interest.
If Bitcoin holds a support zone above $93,700, it could attempt to push toward a $100,000 milestone. However, a breakdown below $91,000 may trigger lower moves and may test the $88,000 to $85,000 range.
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