Key Points
- 21,000 Bitcoin options are set to expire, potentially influencing the cryptocurrency’s price.
- Bitcoin is facing strong resistance at $71,000, with its price largely consolidating between $69,000 and $71,000.
The largest cryptocurrency in the world, Bitcoin (BTC), has experienced significant volatility this week.
At the time of writing, BTC’s price is up 6% on the weekly chart, trading at $70,922 and boasting a market cap of $1.4 trillion.
Bitcoin Options Expiry
Data from Greeks.live reveals that 21,000 Bitcoin options, with a notional value of $1.5 billion and a put call ratio of 0.62, are set to expire.
The max pain point for the expiry stands at $69,000.
The cryptocurrency market, including Bitcoin, has faced increased volatility due to higher than expected US CPI data and inflation.
However, implied volatility has declined, suggesting that if there are volatile price movements, the BTC price could drop below $70,000.
Greeks.live data also indicates that sell calls have dominated Bitcoin trading over the past month, with optimism around Bitcoin halving seeming to fade.
With a slowdown in Bitcoin ETF inflows, BTC may lack the momentum to continue its rally.
Price Consolidation and Resistance
Currently, the Bitcoin (BTC) price has been largely consolidating between $69,000 and $71,000.
Analysts suggest it could continue to consolidate up to halving without showing any major price movements.
Over the past two weeks, the Bitcoin (BTC) price has struggled to surpass $71,000, indicating a strong bearish grip in the market.
Critics speculate that the recent decline of the S&P 500 from its peak could signal an economic downturn.
Given Bitcoin’s strong correlation with stocks, which was over 80% last month, its price might initially decline if market troubles persist.
The BTC futures market continues to show signs of neutrality, indicating a healthy demand for leverage calls compared to the situation at the end of March.
However, any excessive leverage remains a concern, with the Bitcoin futures open interest currently standing at $34.3 billion.
On-chain data provider Santiment reports that if the Bitcoin price moves towards its all-time high levels soon, a surge in Bitcoin halving mentions could serve as a FOMO indicator, hinting at a temporary peak.
Conversely, if the BTC price starts to retrace toward $67,000 amid a surge in halving discussions, it could signal FUD, presenting strong buying opportunities.
