With over 85.3k BTC options set to expire today, here’s everything you need to know
The biggest mystery for any investor is to know the best entry points in a current market cycle. For a Bitcoin maximalist, the $34,000 range was the most rewarding point of entry for opening long positions.
Notably, in the market-wide capitulation event on 24 February 2022, the weak hands gave in to FUD. Simultaneously, high net worth individuals resorted to accumulating.
At the time of writing, the king coin was resting well in its psychological level, up by about 8.75% over the last seven days. As the overall sentiment for BTC makes a bullish shift, the dominance of FOMO in the coming days can’t be ruled out. Well, only if the BTC crosses its one-month-long resistance at the $45,000 mark.
Now, the most pertinent question for a profit-seeking investor is- Should one enter the market at the current price level?
Interestingly, the derivative market and the on-chain metrics have the answer.
Curiously, over 85.3k BTC options open interest contracts are set to expire on 25 March 2022. Out of which a little over 50k contracts are calls options. This presents an interesting scenario. At the time of writing, BTC was changing hands at $44,115 with an increase of 2.60% over the last day.
Source: skew
In fact, out of the 17.9k option contracts at $40k strike price, 10k call option contracts – which shows a number of large option players are in losses. Now, investors excited about BTC reaching the $44,000 mark can take a little cautious approach.
Primarily because call option sellers at a $40,000 strike price wouldn’t easily want to book losses at this expiry. Interestingly, depending on this factor BTC’s price can go either north or might side with the bears. So basically, there is a possibility of a drop in Bitcoin prices until the
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