Bitcoin Options Data Suggest Weakness With Put Calls Dominating

The Bitcoin price lost the crucial support of $27,000 earlier this week with BTC now oscillating around $26,700 levels. Traders shall be closely watching for any kind of volatility ahead of the Friday’s expiry.

A Look At Bitcoin Options Data

Approximately 24,000 BTC options are nearing their expiration, presenting a Put Call Ratio of 1.23, a maximum pain point at $27,000, and a notional value totaling $640 million. Alongside this, around 190,000 ETH options are also on the verge of expiration, boasting a Put Call Ratio of 0.71, a maximum pain level of $1,600, and a notional value of $290 million.

Bitcoin (BTC) remains the dominant player, with a remarkable 70% surge in weekly positions for BTC options. Notably, BTC Put positions comprise 60% of the total, an unusual occurrence, reports Greek Live. Conversely, Ethereum (ETH) seems to be in a slower lane, lagging behind.

Despite the volatility, implied volatilities (IVs) across various major terms have hit all-time lows, showing no clear signs of an imminent rebound. Moreover, liquidity has been dwindling lately, pointing toward a significant market event on the horizon.

Investors need to be cautious as the increasing volume of outstanding Bitcoin futures and options contracts could be contributing to the cryptocurrency’s sluggish performance this October. When Bitcoin’s open interest reaches or exceeds $7 billion, it typically indicates heightened greed among investors. Currently, it stands at $6.19 billion.

Bitcoin Price Action Ahead

Bitcoin remains range-bound, fluctuating between $25,000 and $32,000, with challenges to break through either support or resistance levels. On the daily chart, Bitcoin’s price struggles to surpass the 200-day simple moving average.

It’s currently testing the 50-day simple moving average, which aligns with a significant level of around $26,500. Below this point, a cluster of previous highs and lows provides support down to $25,000, limiting further potential for a sell-off. To initiate a rally towards the $32,000 resistance, Bitcoin must convincingly breach the 200-day simple moving average situated at $28,000.

Some market analysts also believe that the Bitcoin price could retrace to $20,000, before kicking off its next bull run around or after the Bitcoin halving 2024. However, the developments and progress around the Bitcoin ETF could contain this price fall.

At this very same point in the cycle (less than 190 days before the Halving)… #BTC retraced -25% in 2015

And retraced -38% in 2019

Something to really think about$BTC #Crypto #Bitcoin pic.twitter.com/iDloPVp8j7

— Rekt Capital (@rektcapital) October 12, 2023

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.