July 4 Bitcoin Options Expiry Worth $3B Puts Spotlight on BTC’s $106K “Max-Pain” Zone

• With $3 billion Bitcoin (BTC) options expiry looming, analysts have predicted that the asset faces a downside risk as the “Max Pain” lies at $106k, below the current price. 
• Analysts have also predicted that the asset could recapture the $111k level if it holds above the $108k level.

Bitcoin (BTC) could witness short-term price swings as option contracts worth $3 billion are set to expire today, July 4. According to data, the “Max Pain” is $106k, and the price could move towards this level. Technically, option buyers are expected to experience the maximum loss at this point while sellers experience the least of the total amount of loss.

Bitcoin (BTC) Price Action and Potential Movements

Pending this interesting moment, Bitcoin (BTC) has recorded a 0.37% decline on its 24-hour price chart to move from its daily high of $110,541 to $108,930 at press time. According to CoinMarketCap data, the 24-hour trading volume has also declined by 13% with $48.9 billion changing hands.

Delving deep into the market, we discovered that there is a balanced scenario between bullish and bearish bets with the put-to-call ratio fixed at 1.05. Analysts believe that while this level suggests uncertainty, there is a high downside risk as long as the price stays above the Max Pain level.

In the meantime, Bitcoin is still holding above its short-term support levels of the 20-day and 10-day moving averages. Also, there is a high buying strength as the asset trades near the top of the Bollinger Bands. While some momentum indicators also show signs of exhaustion, the MACD confirms the existence of an underlying strength.

According to analysts, once Bitcoin falls below the current point to $107k, there is a high likelihood that the price could make an additional fall to $106k. Holding above the $108k could also see Bitcoin advancing into the $110k territory and subsequently into the $111k zone.

As noted in our recent analysis, Bitcoin long-term holders have been advised to wait till $140k to “recapture the peak profit margin” recorded in the previous cycle. Basically, this level of growth could be fueled by the weakening dollar and market optimism as mentioned in our recent publication.

Speaking on the overall market cycle, analyst Rekt Capital has warned that Bitcoin has only a few months left on its “bullish calendar.”

Specifically, he believes that the market would peak in October if it follows the 2020 pattern.

Many people are happy to throw away time-tested principles out the window, whereas it’s really important to rely on these sorts of metrics because they are not going to sway you as much as throwing everything out the window will.

Analysts Speak on BTC

Joining the Bitcoin discussion, a Canadian social media personality called Greg O’Gallagher has also predicted that Bitcoin could likely hit $250k this cycle. According to him, his prediction is based on historical trends, and the bull market could happen faster than anticipated.

Fascinatingly, the CEO of Bitget, Gracy Chen, believes that the Bitcoin price could find a position within the $126k and the $190k range, as highlighted in our previous news article. However, Bitcoin advocate Samson Mow expects the price to rise explosively to $1 million by the end of the year, as also detailed in our earlier discussion.

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