Bears take control of Bitcoin options market

A total of 15,530 Bitcoin (BTC) options contracts will expire on June 4. The value of the open positions of these contracts is 575 million dollars. The bulls are still at a disadvantage due to the current 37 percent correction in May, which has resulted in most call options becoming worthless.

Despite the correction in price, Bitcoin’s active supply has hit its lowest level in the last five months. 45 percent of Bitcoin supply has not been moved in the past two years. This shows that investors who bought BTC until 2019 are reluctant to sell at current price levels.

Bitcoin miners also avoid selling below $40,000. Miners’ BTC sales hit the lowest level in the last seven months.

On the other hand, technical analysts point to strong support at the 50-week exponential moving average, which is around $34,000.

The market is giving quite mixed signals at the moment and everyone is trying to catch various clues to predict what the next move will be.

Bears dominate the options market

While bears dominate Friday’s expiration date, put options mostly focus on the $32,000 gold.

Total open position of bitcoin options. Source: Bybt

At first glance at the options market, it can be seen that the buy/sell ratio is 0.84 and therefore the situation is in favor of the bears. However, this ratio considers all options contracts at the same value. However, with BTC hovering around $39,000 less than 24 hours before expiry, call options above $46,000 have become worthless.

The same is true for put options under $28,000. Therefore, in order to better understand the effect of Friday’s expiry date, it is necessary to focus on contracts in the $32-42k range.

There are 3,080 call options with a strike price of up to $42,000, and the open interest of these contracts is worth $114 million. On the other hand, there are 4,680 put options up to $32,000 and their open interest is $173 million.

The $60 million difference in favor of the bears is not expected to have a major impact on the BTC price.

The opinions and views expressed here are those of the author alone and do not necessarily reflect those of Cointelegraph. Every investment involves risk. Do your own research before making a decision.

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