Many predictions are surrounding Bitcoin options expiration, believing that it would support price surge, while others foresaw a coming correction. After this week’s unexpected price growth, the digital asset continues to struggle to record new gains, inching on the $40,000 peak. When the $1 billion BTC option expires tomorrow, analysis shows that market bulls could explore that opportunity to drive up Bitcoin price towards the $40,000 range.
The open interest, which worth a billion-dollar, would expire tomorrow, being the option’s closing date. Similarly, the last month had options worth $4 billion, which is far larger than the current month’s position. It’s safe to note that the options take up a more significant percentage of the volume.
The analysis shows a possible price surge
Following the asset’s position on charts, the option’s expiration is following a balanced scale. The charts also show that market players could get momentum to take the price beyond the $38,000 mark. One of the largest holders of the options is the Deribit exchange, which holds slightly over 80% of the shares.
When looking at the interest range between $28,000 and $43,000, there are millions regarding bullish options, which move against put options, currently worth up to $290 million in value. A similar balance from below and above the current asset price might help the crypto gain some stability. Bearish put options now stand around $36,000 and dropping, while neutral-to-bullish goes as high as $43,000.
With the $34,000 and $36,000 price points, there is a likelihood that the equilibrium shows that both sides are matched. While there are issues between $32,000, some market players continue to pull down prices, signaling some unexpected imbalance. Millions worth of options risks moving towards the negative. The bears’ activities still cannot overcome the bull’s determination to drive the price towards higher grounds.
Market bulls’ action would cause contract imbalance
Bulls and bears are working towards meeting their expectations regarding the market situation. If bulls successfully drive the price towards the $38,000 point, analysis shows almost 3,000 BTC worth of contract imbalances.
The price signifies a 5% positive movement, which is over $100 worth of open interest. There is a risk involved in the up movement, while charts carefully analyze bullish options against the options. Charts show numbers with 0 to 15 being in the neutral range, while a negative outlook would need premiums to mitigate some risks.
This happened late layer year, with indicators being around the 10 point, signifying a retaking of its previous value. Charts show that spaces are balanced, and no opportunities to add pressure. By tomorrow morning, options from top exchanges like OKEx and Deribit would come to a halt.
The last few days before 2020 ended, most understood the rate at which the digital asset skyrockets, which people linked to its neutral levels since the asset currently moves towards similar levels, there is a possibility that the asset would follow suit. If the bulls can push towards the previous high, it could efficiently promote mainstream adoption and record-high gains caused by price surge.
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