- Earlier this week, the price of Bitcoin dropped below the critical support level of $27,000 and is currently fluctuating around $26,800.
- Approximately 24,000 BTC options are set to expire, offering a Put-Call Ratio of 1.23, a maximum pain point of $27,000, and a notional value of $640 million.
- The increasing volume of Bitcoin futures and options contracts may contribute to the lackluster performance of cryptocurrencies in October.
Bitcoin is still trading just below the $27,000 resistance level: Options for Bitcoin and Ethereum that expire today!
Expiring Bitcoin Option Data
Earlier this week, the price of Bitcoin dropped below the critical support level of $27,000 and is currently fluctuating around $26,800. Market participants will closely watch for any volatility before the end of the week on Friday.
Approximately 24,000 BTC options are set to expire, offering a Put-Call Ratio of 1.23, a maximum pain point of $27,000, and a notional value of $640 million. Additionally, around 190,000 ETH options are nearing expiration, with a Put-Call Ratio of 0.71, a maximum pain level of $1,600, and a notional value of $290 million.
Bitcoin (BTC) remains a dominant player, with a significant increase in weekly positions for BTC options. Notably, BTC Put positions make up 60% of the total, which is an unusual situation. On the other hand, Ethereum (ETH) seems to be progressing at a slower pace.
Despite possible volatility, implied volatility (IV) has reached record-low levels during various underlying periods, with no clear signs of an imminent recovery. Moreover, liquidity has decreased recently, which may signal an important market event in the near future.
The increasing volume of Bitcoin futures and options contracts may be contributing to the lackluster performance of cryptocurrencies in October. When Bitcoin’s open interest exceeds or reaches $7 billion, it often indicates increased greed among investors. Currently, that figure stands at $6.19 billion.
Bitcoin Price Movements
Bitcoin is still oscillating between $25,000 and $32,000, struggling to break through both support and resistance levels. On the daily chart, Bitcoin’s price is having difficulty surpassing the 200-day simple moving average level.
Currently, it is testing the 50-day simple moving average around $26,500, an important level. Below this point, a cluster of previous highs and lows adds further potential constraints to a selloff down to $25,000. To convincingly surpass the $32,000 resistance, Bitcoin needs to pass the 200-day simple moving average located around $28,000.
Some market analysts believe that Bitcoin’s price could drop to $20,000 before initiating the next bull run, possibly around the 2024 Bitcoin halving. However, developments and progress related to Bitcoin ETFs may limit this price drop.
