Bitcoin has managed to stay above the $94,500 threshold following the expiration of options contracts worth $7.2 billion. On Friday, a total of 76,709 contracts came to an end. Despite this significant event, Bitcoin’s value showed resilience, increasing by over 2% after experiencing a dip to $92,000 the previous day.
Are Investors Confident in Bitcoin’s Future?
Data from options trading reveals a continued bullish sentiment among market participants. Notably, 57% of the expired contracts were call options, with dominant trade levels identified at $95,000 and $100,000. Aran Hawker, CEO of CoinPanel, interprets this behavior as a strong indication of long-term optimism.
The put-call ratio was recorded at 0.73, suggesting a lower interest in bearish positions compared to call options. The “maximum pain point,” or the level where the most significant losses occur, was identified at $86,000, illustrating a reduction in hedging against potential declines.
What Factors Contributed to Bitcoin’s Stability?
While major options expirations typically invoke significant volatility, Bitcoin exhibited stability this time around. Recent metrics indicated a slight decrease in implied volatility, signaling that the market remained calm in the short term.
Two major factors contributed to this calmness. Firstly, Bitcoin withdrawals from centralized exchanges reached a two-year peak, indicating that investors are moving their assets to long-term wallets, suggesting a new accumulation phase. Secondly, findings from Glassnode highlighted that large investors, also known as whales, actively acquired Bitcoin during the recent price rally.
- Bitcoin remains resilient above key support levels.
- Long-term bullish sentiment is evident among market participants.
- High demand for upcoming options expirations indicates potential price movements.
- Whales are strategically accumulating Bitcoin, reflecting confidence in its value.
The Bitfinex team noted a reduction in upward resistance after surpassing the $90,000 options barrier, drawing attention to new buy options around $95,000 and $100,000. Moreover, with the upcoming options expiration dates on May 30 and June 27 gaining traction, market participants appear poised for potential upward movement.
