bitcoin remains within a bullish formation but is technically under pressure, as shown on the daily chart. In spot rates, there are signs of weakness, especially given that buyers failed to break above $72,000.
More than $4.7 billion of btc options expire in 24 hours
However, a CEO of a crypto company twitter.com/nicrypto/status/1795745478413275212″ target=”_blank” rel=”noopener nofollow”>think This is about to change. On May 30, over $4.7 billion in options contracts will expire at 8:00 am UTC, possibly triggering a rally that will push prices above $70,000, starting a continuation of the uptrend. .
In a post on Due to this positioning, there appears to be a strong contingent of investors betting on bitcoin to expand above the psychological settlement line of $70,000 in the next 24 hours.
While this could be successful, raising confidence and perhaps generating more demand to confirm the May 20 gains, only time will tell. Under the current deal, the founder said options traders are closely monitoring the “peak pain” price of $65,000. At this level, most options will expire worthless.
Are market makers putting downward pressure on bitcoin prices? What will happen tomorrow?
The chances of btc going down to this level are also high. The analyst said most market makers keep spot prices near the “peak pain point” in the run-up to options expiration dates. Whenever they do this, options traders, as expected, maximize their profits, causing most calls and puts to become worthless.
As structured, options give the holder the right, not the obligation, to exercise them at a predetermined price on a specified date. Calls allow the trader to purchase the underlying asset, in this case btc, at a certain price. The analyst notes that most call options have a strike price (or strike price) greater than $70,000. Only if btc rises above this level can call options traders buy at the strike price and sell immediately for profits.
Currently, btc is trading around the $67,700 level. Therefore, if prices continue to decline, falling towards $65,000, a large portion of the call options will expire out of the money and become worthless. Still, this won't necessarily mean doom and gloom for bitcoin.
Once the expiration period ends, the impact of market makers on prices is likely to diminish. Subsequently, btc prices will likely rise in the inevitable price revision, surpassing the $70,000 resistance level.
As prices expand, the bulls will be incentivized to re-enter, which will further push the coin towards $72,000, confirming the bulls from May 20.
Featured image from Canva, TradingView chart
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