After facing a strong rejection at $61,300 this week, Bitcoin price dropped to $57,000 on Thursday, just before Bitcoin options expire on Friday. The put/call ratio for BTC and ETH options shows that the bulls and bears are currently locked in a tight fight.
Bitcoin Options Expiration and Market Volatility Mitigation
On Friday, August 16, a total of 24,000 Bitcoin options are set to expire with a put/call ratio of 0.83, a notional value of $1.4 billion, and a maximum pain point of $59,500. This put/call ratio, close to 1, shows that the bulls and bears are engaged in a fierce battle. At press time, Bitcoin price is trading down 5% at $58,077, with technical indicators suggesting a drop in BTC price to $54,000.
Current options expiry represents only 10% of the total open positions currently in the market, with upcoming positions in August, September, and December representing just over 20% each. Thus, the distribution of options terms remains relatively balanced and exhibits strong resilience. The options market is hinting at an easing of volatility in the cryptocurrency market going forward, indicating that the market may be entering a more stable phase.
In addition to Bitcoin options, a total of 184,000 Ethereum (ETH) options expire today with a put/call ratio of 0.80, a notional value of $470 million, and a maximum pain point of $2,650. Ethereum price is also experiencing some selling pressure, down 3.47% at press time and trading at $2,587.96 with a market cap of $311 billion.
Bitcoin Rally Stalled Despite Macro Market Tailwinds
Despite the slowdown in CPI inflation data, Bitcoin bulls have failed to regain strength during the current market volatility, facing strong rejections at $61,300 levels. 10x Research noted that macroeconomic tailwinds have prevented Bitcoin’s rally to $66,000, with traders remaining confused amid the sharp disconnect between US tech stocks and the cryptocurrency market’s underperformance.
According to the 10x Research report, Bitcoin could pull back to the $50,000-$60,000 trading zone. On the upside, BTC faces strong resistance in the $60,000-$61,000 range. This potential slowdown could also give oversold technical indicators a chance to reset, increasing the likelihood that Bitcoin will retest its August 5 low near $50,000, a move that could surprise many investors.
Bhushan Akolkar
Bhushan is a FinTech enthusiast and has a good flair for understanding financial markets. His interest in economics and finance draws his attention towards the new emerging markets of Blockchain technology and cryptocurrencies. He is continuously in the process of learning and motivates himself by sharing his acquired knowledge. In his free time, he reads detective novels and sometimes explores his culinary skills.
Disclaimer: The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication does not assume any responsibility for your personal financial losses.
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