Bitrabo Editorial
Bitcoin is currently in a bullish pattern but facing technical pressure based on the daily chart, with some weakness evident at current levels due to the inability of buyers to breach $72,000.
Significant Volume of BTC Options Expiring Soon
Coinciding with a staggering $4.7 billion in Options contracts set to expire within 24 hours, one crypto firm CEO predicts a potential rally above $70,000, signaling a continuation of the upward trend.
The majority of options set to expire are bullish call options with strike prices surpassing $70,000, indicating a significant number of investors banking on Bitcoin surpassing $70,000 within the coming day.
Despite the positive outlook, the founder mentioned that option traders are closely watching the $65,000 “max pain” price level, where the highest number of options will expire worthless.
Market Dynamics and Future Scenarios for Bitcoin
There is a possibility of Bitcoin descending to the $65,000 mark as market makers tend to guide spot prices towards this level prior to options expiry dates to maximize profit, rendering many options worthless. Calls offer the right, not the obligation, to buy the underlying asset at a predetermined price by a specified date.
Most call options have a strike price above $70,000, only profitable if Bitcoin surpasses this level, allowing traders to buy at the strike price and sell at a profit immediately.
Currently, Bitcoin is trading near $67,700, and a drop towards $65,000 could lead to many call options expiring out of the money. However, this does not necessarily indicate negative implications for Bitcoin’s future. Post-expiry, market makers’ impact on prices is likely to diminish, potentially pushing Bitcoin above the $70,000 resistance level.
As prices rise, bullish sentiment may increase, propelling Bitcoin closer to $72,000 and reinforcing the bullish trend observed on May 20.