- Bitcoin remains within a bullish formation but is technically under pressure, as shown in the daily chart. At spot rates, there are hints of weakness, especially considering buyers’ failure to breach $72,000.
- Over $4.7 billion of BTC options are set to expire in 24 hours, potentially impacting market dynamics.
- One CEO of a crypto firm believes this could spark a rally, pushing prices above $70,000.
Bitcoin faces a critical juncture with $4.7 billion in options expiring, potentially igniting a price rally above $70,000.
Over $4.7 Billion Of BTC Options Expiring In 24 Hours
On May 30, over $4.7 billion of Bitcoin options contracts will expire at 8:00 AM UTC. This significant event could potentially spark a rally, lifting prices above the $70,000 mark and continuing the uptrend. The founder of a crypto firm pointed out that most of these contracts are bullish call options with strike prices exceeding $70,000. This indicates a strong contingent of investors betting on Bitcoin’s expansion above the psychological $70,000 liquidation line within the next 24 hours.
Are Market Makers Pushing Bitcoin Prices Lower: What Happens After Tomorrow?
The odds of BTC drifting lower to the “max pain” price of $65,000 are elevated. Market makers often keep spot prices near this level leading up to options expiry dates to maximize their profits, rendering most call and put options worthless. As structured, options give the holder the right, not the obligation, to exercise at a pre-determined price by a given date. Calls allow the trader to buy BTC at a given price, and most calls have a strike price above $70,000. If BTC soars above this level, call options traders can buy at the strike price and sell for a profit.
Conclusion
As the expiry period ends, the price impact from market makers is likely to subside. Subsequently, BTC prices may edge higher in the inevitable repricing, breaking above the $70,000 resistance level. As prices expand, bulls will be incentivized to re-enter, driving the coin toward $72,000 and confirming the bullish sentiment from May 20.
