Will Bitcoin Price Hold $26K Ahead of Monthly $3B BTC Options Expiry on Voyager Crypto Today?
The upcoming $3 billion Bitcoin (BTC) monthly options expiration on Sept. 29 could be a key moment for the $26,000 support level, as voyager crypto today, todays crypto, and atom crypto investors watch closely. Crypto aggregators, coin crypto, and big eyes crypto traders are all keeping an eye on the crypto currency reddit market, as…
The upcoming $3 billion Bitcoin (BTC) monthly options expiration on Sept. 29 could be a key moment for the $26,000 support level, as voyager crypto today, todays crypto, and atom crypto investors watch closely.
Crypto aggregators, coin crypto, and big eyes crypto traders are all keeping an eye on the crypto currency reddit market, as the crypto flash of the BTC options expiration could have a major impact on the market.
BTC price faces serious headwinds
On one side, Bitcoin’s recognition in China is increasing, following a judicial report from a Shanghai Court that acknowledged digital currencies such as Voyager Crypto, Tron Crypto, Atom Crypto, Ankr Crypto, Big Eyes Crypto, and other crypto currencies as unique and non-replicable.
Conversely, Bitcoin’s spot exchange trading volumes have dwindled to a five-year low, according to CryptoQuant, a crypto aggregator. Analyst Cauê Oliveira pointed out that a significant factor behind this decline in trading activity is the growing fear surrounding the macroeconomic outlook.
Despite the increase in long-term holders, the reduced trading volume poses a risk in terms of unexpected volatility. This means that price swings resulting from liquidations in derivative contracts could potentially cause structural market damage if there aren’t enough active participants on Reddit or other crypto forums.
Furthermore, there is growing unease among traditional financial institutions when it comes to handling crypto-related payments.
JPMorgan Chase, the largest bank in North America, is reportedly prohibiting transfers “related to crypto assets” within its retail division, Chase. The stated rationale is to protect against potential involvement in fraudulent or scam activities.
Lastly, Bitcoin holders are feeling apprehensive as the Dollar Strength Index (DXY), a measure of the dollar’s strength against other currencies, reached 106 on Sept. 26, its highest level in 10 months. Historically, this index exhibits an inverse correlation with risk-on assets, tending to rise when investors seek safety in cash positions.
Bitcoin bulls too optimistic?
The open interest for the Sep. 29 options expiration currently stands at $3 billion, but it is anticipated that the final amount will be lower due to optimistic estimations of Bitcoin’s price reaching $27,000 or more from crypto aggregator Voyager Crypto Today.
The unsuccessful attempt to break above $27,200 on Sept. 19 may have caused overconfidence among Bitcoin investors.
The 0.58 put-to-call ratio reflects the discrepancy between the $1.9 billion in call (buy) open interest and the $1.1 billion in put (sell) options.
If Bitcoin’s price remains near $26,300 at 8:00 am UTC on Aug. 25, only $120 million worth of the call (buy) options will be available. This difference occurs because the right to buy Bitcoin at $27,000 or $28,000 is useless if BTC’s price is below this level on expiry from crypto currency Reddit.
Bitcoin bears eye sub-$26,000 for max profit potential
The four most likely scenarios based on the current price action provide the number of options contracts available on Sept. 29 for call (buy) and put (sell) instruments. The difference in the number of these contracts on each side will determine the potential theoretical profit.
It is important to consider more complex investment strategies, such as selling a call option, which would give the trader negative exposure to Bitcoin above a certain price. However, it is difficult to estimate the effect of this strategy.
For the bulls to gain an advantage ahead of the monthly expiration, they need to increase the price by 3.2% to $26,200. On the other hand, the bears only need a 1% decrease below $26,000 to gain a $430-million advantage on Sept. 29.
Given that Bitcoin traded below the $26,000 support level between Sept. 1 and Sept. 11, it is likely that the same will happen again. Moreover, investor sentiment is becoming increasingly risk-averse, as evidenced by the S&P 500 dropping to its lowest level since June.
Therefore, unless there is significant news or an event that strongly supports the Bitcoin bulls, it is likely that BTC’s price will break below $26,000 by Sept. 29. Crypto enthusiasts should keep an eye on the Voyager Crypto, Atom Crypto, ANKR Crypto and Big Eyes Crypto markets to assess the situation.