Bulls v Bears: Bitcoin Price Nears Critical Levels Near Options Expiry, What Next?

As the markets continue to consolidate, no specific price action has been witnessed in the past few days. The BTC price continues to hover in and out of $28000, which is displaying active participation among the bulls and the bears. However, Bitcoin is now slowly diverging towards the interim lower support, which may flutter red flags in the coming days. 

The weekly BTC option expiry, where-in $1.2 billion worth of open interest is about to expire, is fast approaching. However, the actual figure is expected to differ as most of the bets of the bulls are believed to have been placed on the Bitcoin price trading above $29,000. 

The 1.85 call-to-put ratio reflects the difference in open interest between the $1720 million call (buy) option and the $390 million sell option. The outcome is expected to be extremely lower, as the bulls are very optimistic. If the BTC price continues to hover around $28,100, then there will be only $125 million in call options. Below are the 4 most likely scenarios that can manifest during the expiry:

• BTC price between $26,000 and $27,000:- it may go in favor of the ‘put’ call impacting $150 million

• Price between $27,000 and $28,000:- it may go in favor of the ‘put’ call impacting $60 million

• BTC price between $28,000 and $29,000:- it may go in favor of the bulls with a profit of $100 million

• BTC price between $29,000 and $30,000:- bulls may have an advantage which may further increase to $240 million

However, the critical levels for the expiry are around $28,000, and the Bitcoin (BTC) price is expected to remain around these levels until the expiry. 

Will BTC price reclaim $28,000 and maintain a fine upswing ahead?

The BTC price is unable to rise above the major resistance that acted as strong support for a while in June-July 2022. However, this consolidation does not reflect the accumulation phase but rather a sign of a decent pullback. Therefore, the price may revisit the levels below $27,000 before igniting the next bullish wave to hit $30,000.