A total of 42,850 Bitcoin (BTC) options contracts ($1.7 billion) will expire on Friday, July 30. Friday marks the first weekly expiry day since May 21, when bulls can take advantage of $40,000 call options.
Bitcoin’s latest rally was triggered by a rumor that Amazon would accept crypto payments, but BTC remained strong despite the e-commerce giant’s denial of the rumor.
Regardless of the reason behind the market strength, options markets offer several reasons for bulls to defend the $40,000 level.
At first glance, the analysis shows that call options that reflect neutral or bullish prospects have a 21 percent advantage over the buy and sell rate. However, the vast majority of these call options have a strike price of $45,000 or more.
The control is entirely in the bulls.
Bears who are overconfident in monthly options placed as much as 87 percent of neutral or bearish put options at $39k and below. If the bears can push the price below this level by expiration, another $105 million worth of put options will be available.
Call options with a transaction price of less than $39,000 have a value of $320 million. So the bulls have a $215 million advantage over the bears.
The value of the open positions of the bulls will increase by $140 million if the price holds above $40,000. This difference seems to be reason enough to defend $40,000.
So in the current situation, the options market reveals that the bulls have a serious advantage, at least in the short term.
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