Bitcoin Option Data: Will the Upside Movement for BTC Price Continue?

• Bitcoin (BTC) made a strong comeback to the $43,000 levels after the US Fed announced three interest rate cuts in 2024 following the FOMC meeting.
• Data shows a significant increase in protective option trading despite the recent pullback in the crypto market, especially with BTC dropping to $40,000.
• Despite the general market pullback, the focus in the options market remains on BTC, with many options expected to expire.

While Bitcoin price continues to move steadily, current option data sheds light on future price levels for BTC.

Bitcoin Option Data – December 15, 2023

The world’s largest cryptocurrency, Bitcoin (BTC), made a strong comeback to the $43,000 levels after the US Fed announced three interest rate cuts in 2024 following the FOMC meeting. Here is a look at Bitcoin option data and what it says about the future price of Bitcoin.

• Option Contracts: 37,000 BTC options are expected to expire.
• Put-Call Ratio: The Put-Call Ratio is 1.02, indicating slightly more put options (bearish bets) than call options (bullish bets).
• Max Pain Point: The Max Pain point is $42,000. Max Pain is the price at which the least amount of option value is lost. In this context, $42,000 indicates a level where most options could become worthless, benefiting option writers.
• Nominal Value: The total nominal value of these options is $1.58 billion.

Data shows a notable increase in protective option trading, especially with the recent crypto market pullback, where BTC dropped to $40,000. Protective options, especially put options, act as a hedge against potential price declines. A Put-Call Ratio greater than 1 for BTC implies a more bearish sentiment in the Bitcoin option market.

Despite general market pullbacks, the focus in the option market remains on BTC, with many options set to expire. Implied Volatility (IV) has been relatively stable for a month, indicating that the market does not expect significant price fluctuations in the near term. The phrase “ongoing major option changes” suggests ongoing adjustments and position-taking in the option market, likely in response to market developments or new information.

BTC Inflows Are Rapidly Increasing

Bitcoin and Ethereum experienced massive inflows within 24 hours after the FOMC meeting that ended on Wednesday. According to a popular crypto analyst, these inflows reached an impressive amount of $20 billion. The last time such significant inflows occurred was in December 2020, when the BTC price surged from $18,000 to $65,000! In the short term, the price of Bitcoin (BTC) is currently fluctuating between $39,575 and $44,800. Both attempts to surpass the upper limit and pullback attempts to the support level face resistance.

Bitcoin’s price is expected to continue fluctuating between $43,500 and $41,700 in the coming days, anticipating a bullish breakout above the year’s highest levels of $44,800. To confirm a bullish trend, it is crucial for the price to remain above $42,510 levels until the daily close; otherwise, bears may strengthen their influence. Banking giant Goldman Sachs expects the BTC price to reach $100,000 by 2024.