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Bitcoin’s meteoric 55% surge: Traders eye options expiry for market clues

In this post:

  • Bitcoin’s 55% surge and impending options expiry create a volatile crypto market.
  • Put Call Ratios and Max Pain points offer valuable indicators for traders.
  • Fake news, like the SEC’s Bitcoin ETF tweet, continues to impact market dynamics.

Bitcoin has experienced a remarkable surge of 55%, breaking out of a smaller broadening wedge. Options traders brace for the expiry of 36,000 BTC options, while the market remains susceptible to fake news-induced volatility.

Bitcoin, the world’s leading cryptocurrency, has seen a substantial surge in its price, with a notable 55% increase in recent trading sessions. This surge comes as crypto trader Mags highlighted the breakout of Bitcoin from a smaller broadening wedge pattern.

 As Bitcoin enthusiasts closely monitor its price movements, Mags suggests that the cryptocurrency may have a mid-term target set on the upper trendline resistance of a larger broadening wedge.

BTC options expiry insights

Amid this impressive Bitcoin rally, the options market is buzzing with anticipation as 36,000 BTC options are set to expire. Greek. live, a platform for options traders, recently shared critical insights into this impending expiry. 

According to their tweet, the Put Call Ratio for these Bitcoin options stands at 0.9, reflecting the sentiment in the market.

One key point of interest is the Max Pain point, which is noted at $45,000 for Bitcoin. This level is significant as it represents the price at which the maximum number of options contracts expire worthless, potentially influencing market dynamics. The notional value of these Bitcoin options set to expire is a substantial $1.68 billion.

Ethereum (ETH) options are also set to expire, with 262,000 ETH options in the mix. The Put Call Ratio for Ethereum options is reported at 0.64, indicating a slightly different sentiment compared to Bitcoin. The Max Pain point for Ethereum options is $2,400, with a notional value of $680 million.

Bitcoin spot ETF and market volatility

While Bitcoin has been surging, the market has not been immune to the effects of fake news and breaking developments, contributing to frequent and sharp volatility.

 Greek. live traders have advised market participants to consider “LONG GAMMA” strategies as they are expected to be cost-effective during this week’s developments.

A previous tweet by Greek. live highlights the impact of fake news from the SEC on Bitcoin markets. 

A fake Bitcoin ETF approval tweet from the SEC created significant uncertainty in the market, leading to dramatic price fluctuations. 

The data analysis reveals that while sharp volatility increased realized volatility (RV), implied volatility (IV) experienced a slight decrease.

The fake news surrounding the SEC’s stance on Bitcoin ETF approval generated a rollercoaster ride in the short-term dynamics of Bitcoin. Investors responded by reducing leverage, trimming positions, and engaging in early sell-offs as they attempted to navigate the uncertainty caused by SEC-related news fluctuations.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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