Key Points
- The upcoming expiry of Bitcoin Options on 27th December could significantly influence Bitcoin’s price action.
- Despite market volatility, Bitcoin’s bullish sentiment indicates a potential new all-time high.
The Options market for Bitcoin (BTC) is currently in a state of anticipation, as the high-stakes expiry on 27th December approaches.
Bulls are eyeing the $100k target following a surge in capital flow post-election, leading to a skyrocketing Open Interest of $50 billion.
Challenges in Maintaining the $100k Mark
Reaching and maintaining the $100k mark are two different challenges. The current bullish sentiment suggests a potential new all-time high.
However, the Options market must be kept under close scrutiny as the $11.8 billion worth of end-of-year call and put orders set to expire could significantly influence Bitcoin’s price action.
Call Order Dominance in Bitcoin Options
Bitcoin, at the time of writing, was trading under $90k. In the Options market, Deribit led with a 74% market share, while CME and Binance each held around 10.3%.
According to Coinglass data, calls (bets on the price going up) make up nearly 70% of the orderbook, signaling strong bullish sentiment.
If Bitcoin hits the $100k target, a significant amount of Options contracts (worth $11.8 billion) will expire, creating potential selling pressure.
Maintaining the $100k price level largely depends on how these contracts unfold.
Bitcoin’s Potential to Hit $100k Amid Volatility
Despite a temporary dip due to miner selling, long-term holders continue to maintain their positions. This, even as the market becomes increasingly over-leveraged with derivatives.
As more traders enter the Bitcoin Options market, volatility is hitting new highs each day. Despite this, Bitcoin has continued its upward momentum.
The market hasn’t overextended yet. Despite the RSI being in extreme ‘overbought’ territory, miners offloading, and weak hands exiting for short-term gains, the impact on Bitcoin’s price hasn’t been drastic.
This suggests that the bulls are holding strong, and the $100k target is within reach. However, a shadow of uncertainty still looms in the Options market where $11.8 billion worth of contracts will ultimately decide Bitcoin’s fate.