Bulls aim to reclaim $40K ahead of Friday’s $520M BTC options expiry

The Bitcoin options market saw a large spike in trading activity this week, with many companies and traders aiming to eke out a profit ahead of Friday’s $520M bitcoin options expiry.

Bitcoin is on track to hit a new record high this weekend. The cryptocurrency is currently trading around $6,500, but is sitting at a price of $7,500 at the time of writing. And, if it reaches those levels, the virtual currency could make a massive move higher. That’s because the options market is set to expire this Friday, April 13th, and while this isn’t the biggest expiry, it’s still large enough to provide a ton of stimulus to the cryptocurrency. The expiration is part of a $500,000 contract between two traders, one of which is incredibly bullish on the price, while the other is very bearish. The contracts expire around 5:15 PM GMT,

Bitcoin (BTC) proponents have little to cheer about with the 25% increase in the past nine days. After he was killed on the 8th. After testing the $31,000 support level in June, optimism among key traders has waned and even the recent high of $41,000 has not raised their expectations. Contrary to market sentiment, the UK Financial Conduct Authority has noted a significant increase in the number of cryptocurrency holders in the country. A consumer survey shows that 2.3 million UK adults now own crypto assets, up from 1.9 million last year. Another theory that has been proven wrong is the assumption that whales sell out, which is why the price of bitcoin stayed below $47,000 for 31 days. Contrary to this claim, Santiment’s data shows that addresses that held between 100 and 10,000 BTC increased their positions by $367 billion during this period. Regardless of the bullish sentiment of long-term investors, the market expires on the 18th. June at 8:00 GMT options on BTC worth $520 million. Although the first overview shows that neutral-bullish call options lead the way with a 20% advantage, a more detailed analysis shows a different picture. Bitcoin 18. Cumulative expiry of options per exercise point in June. Source: Bybt An off-balance sheet call option (call) offers buyers protection against a price increase, while the reverse is true for put options (put). By measuring the risk of each price level, traders can get an idea whether their positions are bullish or bearish. The total number of signed contracts at 18. The maturity in June is $13,400, or $520 million at the current bitcoin price of $39,000. The Bulls lead with 1,240 contracts, which equates to $48 million, but it all depends on what the price of bitcoin is on Friday morning.

Bulls have a $60 million lead over 38,000

While the initial picture looks bullish, keep in mind that the $44,000 calls (calls) are worth virtually nothing as they are less than sixteen hours from expiration. A more balanced situation is created when these increasing contracts are not taken into account. Less than 2,200 call options were placed at $38,000 or less, representing $84 million in open interest. At $40,000, another 1,000 bullish neutral options become active, bringing open interest to $128 million. In contrast, protective put options, priced at $38,000 or more and consisting of 750 contracts, are worth $28 million. This gives the bulls a comfortable $60 million lead and an incentive to push the price above $40,000, bringing the difference to $120 million. In this case, 99% of the protection puts become worthless. Related: Traders expect the bitcoin price to end the day at $41,000 to confirm an upward trend.

Bears have to wait until the last minute to save their position

The option contracts on Deribit, OKEx and Bit.com close at 8:00 sharp, so there’s no point in trying to manipulate the price before then. But the bears may have thrown in the towel and are setting their sights on the monthly expiration on the 25th. June. Bulls, on the other hand, have a strong incentive to take profits on the 17th. June. The views and opinions expressed herein are those of the author and do not necessarily reflect those of Cointelegraph. Every investment and every stage of trading involves risk. You should do your own research before making a decision.

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