Bitcoin Options Expiry Data Provides Insight Into the BTC Price Movement Ahead
Bitcoin (BTC) rebounded strongly to $43,000 levels post the FOMC meeting, fueled by the US Fed’s announcement of three rate cuts in the upcoming year 2024.
Bitcoin Options Expiry Data
Here’s a look into the Bitcoin Options data and what it tells about the Bitcoin price going ahead.
BTC Options:
- Number of Options: 37,000 BTC options are set to expire.
- Put Call Ratio: The Put Call Ratio is 1.02, indicating that there are slightly more put options (bearish bets) than call options (bullish bets).
- Maxpain Point: The Maxpain point is $42,000. Maxpain is the price at which the least amount of options value would be lost. In this context, it suggests that $42,000 is a level where most options would expire worthless, benefiting option writers.
- Notional Value: The total notional value of these options is $1.58 billion.
The data suggests that, amid a recent pullback in the crypto market, particularly BTC dropping to $40,000, there has been a notable increase in protective options trading. Protective options, such as put options, act as a hedge against potential price declines. The fact that the Put Call Ratio is greater than 1 for BTC implies a more bearish sentiment in the options market for Bitcoin.
Despite the overall market pullback, the focus in the options market remains on BTC, with a significant number of options set to expire. The Implied Volatility (IV) has been relatively stable for about a month, indicating that the market does not anticipate significant price swings in the near term. The mention of “large option shifts still in progress” suggests ongoing adjustments and positioning in the options market, potentially in response to market developments or new information.
BTC Inflows Skyrocket
Bitcoin and Ethereum witnessed massive inflows within 24 hours after the FOMC meeting concluded on Wednesday. As per popular crypto analyst Ali Martinez, these inflows were to the tune of $20 billion. The last time such massive inflows happened in December 2020, the BTC price surged from $18,000 to $65,000!
Over $19.7 billion are flowing into #Bitcoin and #Ethereum today! This is around the same capital inflow we saw back in December 2020 before $BTC surged from $18,000 to $65,000! pic.twitter.com/pBALVN0C2c
— Ali (@ali_charts) December 14, 2023
In the immediate term, Bitcoin’s (BTC) price is oscillating within the range of $39,575 and $44,800. Both bullish attempts to breach the upper limit and bearish efforts to pull it down to the support level have encountered resistance.
The projection for Bitcoin’s price anticipates a continued fluctuation between $43,500 and $41,700 for the next few days, awaiting a bullish breakout beyond the annual highs at $44,800. To affirm a bullish trajectory, it is imperative for the price to maintain levels above $42,510 until the close of the day; otherwise, the bears are likely to intensify their influence. Banking giant Goldman Sachs is also expecting a BTC price surge to $100K by 2024.
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