21,000 Bitcoin options are set to expire having a notional value of $1.5 billion and a put call ratio of 0.62. The max pain point for the expiry currently stands at $69,000.
Throughout this week, the world’s largest cryptocurrency Bitcoin (BTC) has shown strong volatility as we stare at Friday’s Bitcoin options expiry. As of press time, the BTC price is trading 6% up on the weekly chart at $70,922 with a market cap of $1.4 trillion.
As per data from Greeks.live, a staggering 21,000 Bitcoin options are set to expire having a notional value of $1.5 billion and a put call ratio of 0.62. The max pain point for the expiry currently stands at $69,000.
With the US CPI data and inflation coming higher than expected, Bitcoin and the broader cryptocurrency market have experienced stronger volatility. On the other hand, the implied volatility has declined which means that in the case of volatile price movements, the BTC price can tank further under $70,000.
Furthermore, the Greeks.live data shows that the sell calls have dominated the Bitcoin trade over the past month and the optimism around Bitcoin halving seems to be waning. Also, with the slowdown in the Bitcoin ETF inflows, BTC lacks enough impetus to continue with its rally ahead.
As of now, the Bitcoin (BTC) price has been largely consolidating in a tight range between $69,000-$71,000. Analysts believe that it could continue to consolidate up to halving without showing any major price movements.
#BTC is still just consolidating between these two levels
No major trend shift as we approach the Bitcoin Halving$BTC #Crypto #Bitcoin https://t.co/3nYdfEN9Sd pic.twitter.com/iaAQn27Tuj
— Rekt Capital (@rektcapital) April 11, 2024
Bitcoin Faces Strong Resistance at $71,000
Over the last fortnight, the Bitcoin (BTC) price has faced a significant struggle moving past $71,000, clearly hinting at a strong bearish grip in the market. Critics speculate that the S&P 500’s recent decline from its peak of 5265 on March 28 could foreshadow an economic downturn. Given Bitcoin’s strong correlation with stocks, which surpassed 80% last month, its price might initially decline if market troubles persist.
On the other hand, the BTC futures market continues to show signs of neutrality highlighting a healthy demand for leverage calls in comparison to the situation in March-end. However, any kind of excessive leverage remains a valid concern with the Bitcoin futures open interest currently standing at $34.3 billion.
⌛️🗣️ As #Bitcoin has now drawn to its final week before the #halving, social dominance toward the topic has peaked at its highest level of the year at 9pm UTC. The spikes in this topic should be received as high confidence price reversals for #crypto markets. Markets have been… pic.twitter.com/U2dOujjhLj
— Santiment (@santimentfeed) April 12, 2024
On-chain data provider Santiment reports that if the Bitcoin price moves towards its all-time high levels soon, a surge in the Bitcoin halving mentions will serve as a FOMO indicator, hinting at a temporary peak. On the other hand, if the BTC price starts to retrace toward $67,000 amid the surge in halving discussions, it could be a sign of FUD presenting strong buying opportunities.
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