Here's Why Bitcoin Price Could Hit $21,000 Before Friday's $510M BTC Options Expiry
The bears are currently better positioned for the $510 million BTC options expiry this week, but their overconfidence could give bulls a chance to flip the table.
Market analysis
Bitcoin (BTC) has been trying to break above the $20,500 resistance over the past 35 days, with the last attempt failing on October 6th. Meanwhile, the bears showed strength four times after BTC tested levels below $18,500 during this timeframe. period.
Bitcoin/USD Price Index, 12 Hours chart. Source: TradingViewInvestors are still unsure if $18,200 was really at the bottom as the support level weakens each time it is tested. That's why it's important for the bulls to maintain momentum as the $510 million options expire this week.
The October 21 options expiry is particularly relevant, as Bitcoin bears can profit $80 million by removing BTC below $19,000.
The bears placed their bets at $19,000 and belowOpen interest for the October 21 options expiry is $510 million, but the actual figure will be lower as the bears were overly bullish. These traders completely missed the mark by placing bearish bets at $17,500 and below after BTC fell below $19,000 on October 13.
Bitcoin options accrue open interest for the October 21 Source: CoinGlassCall-to-put ratio of 0.77 shows dominance of $290 million open interest over call (call) options of $290 million. Nonetheless, as Bitcoin sits near $19,000, most bearish bets will likely become worthless.
If the price of Bitcoin remains above $19,000 at 8:00 UTC on October 21, only 4% of these put options will be available. This difference occurs because a right to sell Bitcoin at $18,000 or $19,000 has no value if BTC is trading above that level at expiry.
Bulls can still flip the table and get a profit of $150 millionBelow are the four most likely scenarios based on current price action. Number of
The bears are currently better positioned for the $510 million BTC options expiry this week, but their overconfidence could give bulls a chance to flip the table.
Market analysis
Bitcoin (BTC) has been trying to break above the $20,500 resistance over the past 35 days, with the last attempt failing on October 6th. Meanwhile, the bears showed strength four times after BTC tested levels below $18,500 during this timeframe. period.
Bitcoin/USD Price Index, 12 Hours chart. Source: TradingViewInvestors are still unsure if $18,200 was really at the bottom as the support level weakens each time it is tested. That's why it's important for the bulls to maintain momentum as the $510 million options expire this week.
The October 21 options expiry is particularly relevant, as Bitcoin bears can profit $80 million by removing BTC below $19,000.
The bears placed their bets at $19,000 and belowOpen interest for the October 21 options expiry is $510 million, but the actual figure will be lower as the bears were overly bullish. These traders completely missed the mark by placing bearish bets at $17,500 and below after BTC fell below $19,000 on October 13.
Bitcoin options accrue open interest for the October 21 Source: CoinGlassCall-to-put ratio of 0.77 shows dominance of $290 million open interest over call (call) options of $290 million. Nonetheless, as Bitcoin sits near $19,000, most bearish bets will likely become worthless.
If the price of Bitcoin remains above $19,000 at 8:00 UTC on October 21, only 4% of these put options will be available. This difference occurs because a right to sell Bitcoin at $18,000 or $19,000 has no value if BTC is trading above that level at expiry.
Bulls can still flip the table and get a profit of $150 millionBelow are the four most likely scenarios based on current price action. Number of
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