A major event is on the horizon with the imminent expiration of 29,000 Bitcoin (BTC) options and 270,000 Ethereum (ETH) options, according to data provided by Greeks.live. This event, which will take place on March 8, covers options with a total nominal value of more than $3 billion.
A major event is on the horizon with the imminent expiration of 29,000 Bitcoin (BTC) options and 270,000 Ethereum (ETH) options, according to data provided by Greeks.live. This event, which will take place on March 8, covers options with a total nominal value of more than $3 billion.
The cryptocurrency market has been notably volatile, experiencing its biggest fluctuations in almost a year, with Bitcoin reaching a new all-time high above $69,000 before experiencing a sharp 10% drop.
The surge in options trading, fueled by the cash-driven spot bull market in the United States, shows growing investor interest.
Understanding Options Expiration
An options contract offers the buyer the right to buy (in the case of a call option) or sell (in the case of a put option) the underlying asset at a predetermined price, known as the strike price, before The contract expires on a specific day. date (expiration date).
The put-call ratio is a key indicator used to measure market sentiment. It is calculated by dividing the number of put options traded by the number of call options traded.
A ratio less than 1, such as 0.86 for BTC and 0.55 for ETH, suggests that more calls (bets that the price will rise) are traded than puts (bets that the price will fall), which indicates a generally bullish sentiment among investors. . However, a value less than 1 also suggests a level of caution, as the market is not overwhelmingly bullish.
The concept of “peak pain point” refers to the price level at which the greatest number of options (both calls and puts) would expire worthless. For investors who own these options, it represents a worst-case scenario, where they gain nothing from their investment in the options contracts.
In this context, the maximum weak points are $60,000 for BTC and $2,950 for ETH. Traders and market analysts often pay attention to these levels as options approach their expiration dates because a significant number of traders may act to avoid the peak pain point.
Bitcoin Price Consolidation
Bitcoin’s price trajectory is in the spotlight, with market analysts and top traders like Jake Wujastyk predicting its willingness to set new all-time highs.
After a rapid V-shaped recovery following a recent sharp decline, Bitcoin price has stabilized, showing strong signs of an upcoming bull run. The cryptocurrency is currently trading around the $67,000 level, with the market capitalization reaching a new high of $1.33 trillion, reflecting growing investor confidence and adoption.
The ABC pattern formed during its consolidation phase suggests a solid foundation for possible price jumps, with forecasts suggesting a reach towards the $76,000 mark.
