Bitcoin Options are nearing expiration, with significant pressure weighing on BTC prices
Bitcoin options are expected to expire, with a 'maximum pain' point at 105,000 USD, while the support level near 100,000 USD is facing increasing pressure.
Will the decrease in cash flow and leveraged short positions cause BTC to drop below 100,000 USD as the expiration approaches?
If you think that Bitcoin's 7% drop last week indicates that volatility has calmed down, reconsider.
In the past 24 hours, BTC has decreased by 1.19%, hitting 102,446 USD, while triggering over 105 million USD in long liquidation orders.
Although the 100,000 USD level remains intact, reflecting strong interest from buyers and the absorption of downward liquidity, this restructuring may only be the front end of the overall story.
The BTC market prepares for a vital options expiration
Since May, the market seems to be stuck in a 'bubble' of high expectations about Bitcoin.
Despite continuous capital inflow from large institutions, with seven purchases of BTC from MicroStrategy and large whales accumulating, Bitcoin has yet to demonstrate sustainable upward momentum after reaching new record highs.
The indifference of individual investors, along with macroeconomic factors causing instability, keeps cautious cash flow sustained, limiting long-term upward momentum. This is an advantage for derivative traders to manipulate the market based on fear psychology.
At the end of May, Open Interest (OI) for Futures and Options contracts reached record levels, as traders increased leverage and the put/call ratio rose, indicating strong interest despite stagnant spot prices.
Source: Deribit
Currently, over 4 billion USD in BTC options will expire on June 21, with a 'maximum pain' point at 105,000 USD.
In which, put contracts are concentrated around the 102K and 105.5K USD levels, indicating that the bears have started to push BTC towards this maximum pain threshold.
The put/call ratio is 1.19, indicating a negative sentiment, putting pressure on the bulls to defend the current price level and avoid liquidity withdrawal from the market.
Next week could become a time of intense volatility, as the bears attempt to keep BTC below the 'maximum pain' point, paving the way for high-leverage short positions to profit.
Bitcoin options are about to test the 100K USD support level
According to TinTucBitcoin, liquidity based on derivatives will test Bitcoin's ability to hold price around 100,000 USD.
With a larger expiration on June 27, approximately 14.2 billion USD in options contracts (equivalent to 137K contracts) will expire, with the 'maximum pain' point still at 100,000 USD.
If BTC prices maintain above this level at the time of expiration, it will trigger a buying spree to offset short positions and hedging moves from brokers, driving a late-month rally.
Source: Deribit
In the market's steady trend in Q2, Bitcoin is likely to bounce off the accumulation zone and enter Q3 with clear upward momentum.
However, as volatility increases and new cash inflows are about to emerge, closely monitoring derivative flows is an essential task to predict market trends more accurately.
Source: https://tintucbitcoin.com/khi-nao-quyen-chon-bitcoin-dao-han/
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