On Friday, June 14, a significant amount of Bitcoin and Ethereum options will expire, which could bring volatility to the cryptocurrency market. Approximately $2.96 billion in options is drawing traders' focus.
Volume of Expiring Options
According to data from Deribit, nearly $3 billion in options contracts will expire at 08:00 UTC. The open interest shows nearly equal amounts of puts and calls with a ratio of 0.95, suggesting a slightly bullish sentiment, although Bitcoin's current price hovers around $104,000, sitting below the max pain point of $107,000.
Max Pain Point
The max pain level is where option holders feel the most financial loss and often acts as a magnetic level in the final trading hours before expiry. For Ethereum options worth $678 million, the put-to-call ratio stands at 1.23, reflecting traders hedging downside risk after recent declines.
Technical Analysis and Possible Scenarios
From a technical perspective, Bitcoin is beginning to show signs of a potential trend shift as the price has slipped below the 20-day moving average. The relative strength index is below the neutral 50 mark, indicating a decline in bullish momentum. If Bitcoin maintains above $101,000 and recovers to $105,000 before expiry, a short squeeze could occur, pushing the price back towards the maximum pain level of $107,000.
The expiry of Bitcoin and Ethereum options could serve as a crucial volatility factor in the cryptocurrency market. Given the current technical indicators and external factors, traders should closely monitor price movements.
