Bitcoin Price to $90K or $100K as $9.4B in BTC Options Expire Today?

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As a seasoned researcher with years of experience in the dynamic world of cryptocurrencies, I find myself constantly intrigued by the unpredictable nature of Bitcoin. The latest price action has been no exception, with the bounce back to $96,400 levels after a brief dip to $91,000 earlier this week.

The price of Bitcoin rebounded to around $96,400 after a dip to $91,000 earlier this week. Today, there is approximately $9.4 billion worth of Bitcoin options expiring, which could cause further fluctuations as investors watch for the next significant move in its value, potentially towards $90,000 or $100,000.

Where is Bitcoin Price Heading Next?

Over the last few years, Bitcoin’s value has closely followed global M2 money supply trends. Recently, there’s been a significant decrease in the global M2 money supply, which might cause Bitcoin’s price to drop below $90,000. Additionally, after reaching $100K earlier this month, Bitcoin’s trading pattern indicates a downward trend. Analyst Rekt Capital predicts that if the price of Bitcoin doesn’t surpass its resistance level soon, it could potentially fall back to around $91,000 again.

Crypto expert Ali Martinez has pinpointed a significant support area for Bitcoin at around $93,580. At this point, roughly 667,000 different wallets own about 504,000 Bitcoins in total. Martinez emphasized that the bulls must defend these prices to prevent any potential further correction of Bitcoin’s price from hereon.

Meanwhile, Martinez anticipates an uptrend in Bitcoin during Thanksgiving. He pointed out that Bitcoin’s price appears to be breaking free from a short-term flag and pole pattern, which could potentially push it back up to its previous record high of approximately $99,000. “I believe Bitcoin is on track for a recovery to $99,000, and the technical indicators align with this prediction,” he said in his statement.

In a conversation with CNBC, Mati Greenspan, head of Quantum Economics, offered his insights on the progression and fluctuations of Bitcoin’s value:

Since the election day, Bitcoin has been consistently rising with minimal dips. However, reaching the $100,000 mark remains a significant mental hurdle. Breaking this barrier now would suggest strong bullish sentiment, but a temporary dip might occur first to build up momentum for the next push.

This week, the rate at which money is flowing into Bitcoin Spot ETFs has noticeably decreased. In fact, BlackRock’s Bitcoin ETF (IBIT) has received no new investments for two consecutive days. This trend suggests a decline in institutional demand, as large investors seem to be adopting a cautious stance, preferring to observe the market before making any moves.

What Does BTC Options Expiry Suggest?

On this coming Friday, November 29th, approximately 98,500 Bitcoin options will reach their expiration date, representing a total value of about $9.48 billion. This is more than three times larger than the previous week’s expiration. The put/call ratio for this week’s Bitcoin options stands at 0.84, suggesting that a slightly greater number of long (call) contracts will be closing compared to short (put) ones. Furthermore, the current strike price for the maximum potential gain is set at $80,000.

According to information from Deribit, a significant amount of the total value of outstanding options contracts, known as open interest, is clustered around the $100,000 strike price, with approximately $2 billion worth of contracts falling into this category.

In the coming weeks, particularly December, a large portion of year-end options expirations is expected to significantly impact the market, as approximately 40% of all positions are set to expire. This week alone, about 20% of these positions will expire, leading traders to predict a substantial rearrangement of positions. Notably, the well-known options trading platform Greeks.Live highlights this trend.

A drop of approximately 11% in Bitcoin has sparked some individuals to declare that its end is near. Just under a week ago, these same people were expressing their desire for a dip so they could purchase more. Now, they’re opting to wait for even lower prices.

At this moment, the price of a single Bitcoin is being exchanged at approximately $96,198, and the daily trading volume has decreased by around 33%, falling below $50 billion. Additionally, the volume of Bitcoin options contracts has dropped by about 25% to roughly $22.63 billion, while the number of liquidations in the last 24 hours has increased significantly to around $30 million, according to data from Coinglass.

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2024-11-29 11:52