20,000 Bitcoin Options Expiry Positions Max Pain Price At $68,500, What’s Next?

The Bitcoin (BTC) price trajectory is currently facing declines owing to the bearish market trend. Meanwhile, the 20,000 Bitcoin options expiry on June 14, 2024, has drawn significant attention in the crypto market. The latest options expiry sets the maximum pain point at $68,500, raising speculations about what’s ahead for the BTC price.

Understanding Bitcoin Options Expiry Numbers

The “maximum pain” point is a pivotal concept in options trading. It represents the price at which the greatest number of options contracts will expire worthless, causing the maximum financial loss for option holders. For Bitcoin, this point was calculated at $68,500.

The max pain point is significantly above the current trading levels, indicating potential bullish sentiment among option traders. With a Put Call Ratio of 0.49 and a notional value of $1.35 billion, this Bitcoin options expiry holds critical implications for BTC’s immediate price movement and market sentiment.

The Put Call Ratio (PCR) of 0.49 further supports this optimism. PCR is calculated by dividing the number of traded put options by the number of traded call options. A ratio below 1 suggests that more call options are being purchased than put options. Hence, it indicates traders are expecting price increases.

Despite the favorable economic data pushing the U.S. stock market higher, the crypto market underperformed this week. Mainstream coins, including Bitcoin, saw a decline. Moreover, altcoins experienced even sharper drops.

The relative quietness in the market, with fewer hot spots and notable developments, has also contributed to this subdued performance. This lack of momentum is reflected in the implied volatility (IV) levels. Bitcoin’s short-term IV fell below 50%, while Ethereum’s IV dipped below 60%. It suggests lower market expectations for significant price swings and a more cost-effective environment for buyers.

Also Read: Bitcoin Price: BTC Nears Bull Cycle Peak, Is $100K Dream Fading?

What’s In Store For The Market?

With the upcoming news on Spot Ethereum ETF S-1 approval expected by the end of this month, there is a strategic opportunity for traders. The current low IV presents a favorable condition for entering call options, particularly for ETH. Greeks Live noted that market anticipation could drive prices higher once the news breaks, leading to higher profits.

With optimism around Ethereum, Bitcoin could also move upwards, making call options a feasible move. However, the Spot Bitcoin ETFs recorded a gigantic outflow of $226 million, indicating lowered interest among investors. Hence, caution is advised while considering investing in Bitcoin options.

However, the Bitcoin price failing to breakout this cycle is deemed beneficial by analysts. Rekt Capital, a renowned crypto analyst, shared on X, “Bitcoin has never broken out this early in the Post-Halving period. If it did, the cycle would be accelerated to such a point that the Bull Market would simply be shorter than usual.”

Hence, he noted that the continued consolidation of Bitcoin price is in line with historical Halving cycles. Thus, the analysts believe the market will get a usual and strong bull run. Moreover, if the Federal Reserve interest rates are slashed in September this year, BTC might even rally to $100,000.

Also Read: Bitcoin Price: BTC Nears Bull Cycle Peak, Is $100K Dream Fading?