Bitcoin Investors Prepare for $16.5 Billion Options Expiry Amid Market Shift

News

  • Bitcoin’s price drop below $90,000 weakens bullish positions.
  • RSI at 47.53 signals a neutral market sentiment.
  • Bearish MACD momentum points to possible downward movement.

The upcoming March 28 $16.5 billion Bitcoin (BTC) options expiration date continues to draw investor attention. BTC’s unexpected fall below $90,000 after the options expiration creates limited anticipated market changes. The market action has overturned multiple bullish bets while generating potential protection worth $3 billion for Bitcoin bears.

Shift in Market Sentiment and Current BTC Options Open Interest

Bitcoin’s price has fallen below $90,000, resulting in the invalidation of many bullish positions. This decline has shifted market sentiment and presented an important moment for Bitcoin bears. The recent downturn gives them a chance to escape potential losses, which could affect market dynamics in the weeks ahead.

Source: Laevitas.ch

As of now, Bitcoin options open interest stands at a record $16.5 billion. Call (buy) options total $10.5 billion, while put (sell) options lag behind at $6 billion. A closer look reveals that $7.6 billion of these call options are set at prices above $92,000. For these positions to become viable by the March 28 expiry, Bitcoin would need to rise by 6.4%.

The large portion of call options above $92,000 has weakened the advantage for bullish bets. With Bitcoin trading below $90,000, the market faces a substantial hurdle to reach these higher levels before the expiry date. As a result, the potential for bullish positions to profit has diminished, leaving bears with a stronger position.

What is in Play: Bullish or Bearish Trend?

Bitcoin’s price dynamics have sparked investor speculation before the $16.5 billion options expire. Recent analysis focusing on technical indicators reveals the market sentiment. The Relative Strength Index stands at 47.53, signaling an impartial market. 

The RSI is below the 50 threshold, suggesting neither overbought nor oversold conditions. This indicates a balanced market, where Bitcoin is neither in a strong bullish nor bearish trend.

The MACD shows a bearish trend. The MACD line is below the signal line, and the histogram is in negative territory, indicating downward momentum. 

Source: TradingView


The current reading of the MACD stands at 712.51, with a substantial negative value of -1,244.57. Current data shows stronger selling activity exceeds buying power thus indicating a market trend toward lower prices. Bearish MACD momentum will likely impact Bitcoin’s market behavior as $16.5 billion options approach expiry.

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