Quick Take
As Bitcoin’s price hovers around $63,000, slightly down over the past 24 hours, the options market is providing insights into shifting investor sentiment ahead of the expiration on April 26. A key development has been the reduction in positive gamma exposure as Bitcoin declined through the heavily traded $65,000 call strike.
According to Imran Lakha, a 20-year professional options trader notes:
Short gamma reduced on the way down as we went through the big long strike at 65k suggesting volume has been smashed lower, calls are getting dumped
![Bitcoin Gamma Level: (Source: laevitas)](https://cryptoslate.com/wp-content/uploads/2024/04/photo_2024-04-25_08-28-37.jpg)
The options open interest data provided by Deribit reveals a max pain price of $61,000, which could potentially serve as a short-term support level. While significant open interest remains in calls above the current spot price, the lack of put open interest below $60,000 indicates a lack of downside protection. CryptoSlate has pinpointed this price level as a crucial support threshold.
![April 26 expiration, Open Interest by strike price: (Source: Deribit)](https://cryptoslate.com/wp-content/uploads/2024/04/options.png)
![April 26 expiration, Open Interest by strike price: (Source: Deribit)](https://cryptoslate.com/wp-content/uploads/2024/04/options.png)
The put/call ratio of 0.68 reflects a modest bias towards calls, but this has decreased notably due to likely profit-taking on downside hedges.
In conclusion, the options market data suggests a cooling of bullish sentiment as Bitcoin pulled back from recent highs. However, the remaining upside option holdings could still influence short-term price action, with the max pain level as a potential support zone to monitor.
Source: https://cryptoslate.com/insights/bitcoin-options-signal-cooling-bullish-sentiment-as-key-support-level-emerges-at-61000/