Following the FOMC meeting earlier this week, Bitcoin and altcoins have seen selling pressure as the crypto market faces a monthly options expiry on Oct. 31. Nearly $13.5 billion in Bitcoin options, and another $2.5 billion of Ethereum options will expire today, as the market braces for strong volatility ahead.
On the weekly chart, Bitcoin price action shows strong movement from the highs of $116,000 to the lows of $106,000. Furthermore, the flows into spot Bitcoin ETFs have moved into the negative territory, showing waning institutional sentiment.
In the last 24 hours, BTC price has scooped the downside liquidity at $106,000 and surged from there onwards, again closer to $110,000. According to the data from crypto derivative…
Following the FOMC meeting earlier this week, Bitcoin and altcoins have seen selling pressure as the crypto market faces a monthly options expiry on Oct. 31. Nearly $13.5 billion in Bitcoin options, and another $2.5 billion of Ethereum options will expire today, as the market braces for strong volatility ahead.
On the weekly chart, Bitcoin price action shows strong movement from the highs of $116,000 to the lows of $106,000. Furthermore, the flows into spot Bitcoin ETFs have moved into the negative territory, showing waning institutional sentiment.
In the last 24 hours, BTC price has scooped the downside liquidity at $106,000 and surged from there onwards, again closer to $110,000. According to the data from crypto derivatives platform Deribit, a total of 124,171 Bitcoin options contracts, valued at $13.59 billion, are set to expire in the upcoming cycle.
Data from Deribit shows a put-to-call ratio of 0.70, signaling a mildly bullish market sentiment. Of the total open interest, 73,001 are call options and 51,171 are put options, reflecting stronger trader positioning on the upside.
The max pain point is positioned at $114,000. Historically, the BTC price moves to the max pain point as the expiry approaches. However, it first needs to break some important resistances in the mid-way.
Crypto analyst Ali Martinez has identified $112,340 as the key resistance level currently facing BTC. Martinez noted that breaching this level could determine the next major directional move for the leading cryptocurrency.
Ethereum price has slipped under $4,000 level amid continuous selling pressure as bears take the upper hand. As of press time, ETH price is trading at $3,837 levels with 646,902 contracts worth $2.49 billion set to expire.
The max pain level is positioned at $4,100, slightly above the current spot price. Similar to Bitcoin, Ethereum’s put-to-call ratio stands at 0.70, signaling a mildly bullish market sentiment. However, data from Deribit indicates a more defensive tone among traders.
Call open interest totals 381,462 contracts, exceeding the 265,440 put contracts. This suggests that while traders maintain upside exposure, others are simultaneously hedging against potential downside risks.
Read original story $16 Billion of Bitcoin and Ethereum Options to Expire on Oct. 31, Major Volatility Ahead? by Bhushan Akolkar at Coinspeaker.com