When Bitcoin experiences significant price corrections, traders often look to derivatives markets for an explanation. There has been a recent decline in such discussions due to Bitcoin's consistent price movements, but now that there are talks of a possible trend reversal, it is essential to analyze how large investors, known as whales, are positioned in the Bitcoin derivatives market.

The failure to maintain Bitcoin prices above $65,000 on May 6 led some to blame the weekly options expiry for the market's downward trend. Given this perspective, it is anticipated that there may be further downward pressure before the expiry on May 10.

Despite the significant open interest of $1.35 billion in options, a closer look reveals a different scenario. The majority of open options are on Deribit, accounting for 84% of the market share for the May 10 expiry. When comparing call (buy) and put (sell) options, it is noted that the volume of put options has been lower than call options, indicating a bearish market sentiment.

Although there are optimistic bets by call option buyers, there may not be enough time for these bets to materialize before the expiry on May 10. The open interest for call options below $63,000 is high, but most of these are expected to be worthless unless Bitcoin reclaims $64,000 support.

While bears could have benefited if Bitcoin remained above $65,000, the balance between put and call options at various price levels suggests a fairly neutral impact for the market. There is no overwhelming evidence of bearish strategies through options trading, indicating that the market is poised for stability around the $62,000 price level.

This analysis does not offer investment advice, and readers are advised to conduct their research before making any financial decisions.