Bitcoin Options Analyst Expect BTC To Break $70,000 In 24 Hours: Here’s Why

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As a seasoned crypto investor with a few bear and bull markets under my belt, I’ve learned that options expiries can significantly impact Bitcoin prices. The upcoming $4.7 billion BTC options expiration on May 30 is no exception.

In simpler terms, the Bitcoin market maintains an overall bullish trend based on its technical analysis, but there are signs of strain at present. This is evident in the day-to-day price chart. The current Bitcoin prices show some vulnerability, with buyers struggling to push the price above $72,000.

Over $4.7 Billion Of BTC Options Expiring In 24 Hours

As a researcher studying the cryptocurrency market, I’ve come across an interesting observation from the CEO of a crypto firm. On May 30th, approximately $4.7 billion worth of Options contracts are set to expire at 8:00 AM UTC. This event could potentially trigger a price rally, pushing the value above $70,000 and fueling an uptrend continuation.

Bitcoin Options Analyst Expect BTC To Break $70,000 In 24 Hours: Here’s Why

As an analyst, I’ve noticed in a recent post on X that the founder brings up an intriguing observation: a significant number of contracts due to expire on May 30 involve bullish call options with strike prices set above $70,000 for Bitcoin. This implies that there is a considerable group of investors who anticipate Bitcoin’s price to surpass the psychological barrier of $70,000 within the upcoming 24 hours.

This could indeed turn out to be the case, potentially boosting optimism and possibly leading to greater confirmation of the May 20 price increase. However, only the passage of time can provide a definitive answer. According to the founder’s statement, option traders are keeping a close eye on the “max pain” price point at $65,000. At this price level, the largest number of options will expire as worthless investments.

Are Market Makers Pushing Bitcoin Prices Lower: What Happens After Tomorrow?

As a crypto investor, I’ve noticed that the likelihood of Bitcoin (BTC) dipping down to certain levels increases around options expiration dates. Market makers generally maintain the spot price close to what they call the “max pain point” during this period. This strategy allows market makers to maximize their profits. Consequently, many call and put options become worthless. Therefore, it’s essential for investors like us to consider adjusting our positions or strategies around these dates to minimize potential losses.

As a researcher studying options trading, I’ve discovered that structured options provide the right, not the requirement, for the holder to purchase an underlying asset like Bitcoin (BTC) at a pre-set price by a specific date. In simpler terms, calls represent my ability to buy BTC at a certain price. Currently, the majority of these call options come with a strike price, or exercise price, set above $70,000. The value of these options becomes profitable only when Bitcoin surpasses this threshold. Consequently, traders can execute their call options and instantly sell the asset for a profit.

Bitcoin Options Analyst Expect BTC To Break $70,000 In 24 Hours: Here’s Why

Currently, Bitcoin’s price hovers around $67,700. If the prices were to decrease and approach the $65,000 mark, a significant number of call options would expire worthless. However, this doesn’t automatically mean disaster for Bitcoin.

As a researcher studying Bitcoin markets, I believe that once the expiry period of open positions has passed, the price impact from market makers is expected to diminish. Consequently, BTC prices may gradually rise in response to this reduction in market pressure, surmounting the $70,000 resistance level in due course.

As the price of the coin rises, I believe that investors who have previously bought in at higher levels, or “bulls,” will be enticed to re-purchase, thus fueling the coin’s ascent toward $72,000. This bullish trend would serve to reinforce the strong buying pressure observed back in May 2021.

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2024-05-29 22:11