Bitcoin Could See Gains After $24B Options Expiry Relieves Price

TLDR

• Bitcoin options expiry worth $24B set to bring volatility and potential price surge after the holiday season.
• Bitcoin remains rangebound between $85K-$90K as traders await market shifts and a post-expiry breakout.
• Record $24B Bitcoin options expiry could trigger 5-7% price swings, with a $100K target post-expiry.
• Bitcoin holding steady at $86K support ahead of $24B options expiry, setting up potential for upward momentum.

Bitcoin has remained rangebound over the holiday period, frustrating traders who hoped for significant movement. However, a record $24 billion options expiry event is expected to remove the “lid” on Bitcoin’s price, potentially setting the stage for upside. This expiry could lead to volatility, and analysts believe that Bitcoin could see a price surge after this event, with a post-expiry target of $100,000.

Bitcoin’s Price Action Stalls Between $85K and $90K, Waiting for Market Shifts

Bitcoin has been rangebound between $85,000 and $90,000 for several weeks, showing little movement. This stagnation is expected to continue as market participants wait for external factors to drive price action. For now, it seems like a waiting game, with many analysts speculating that Bitcoin’s next move depends on the peak of commodities and the Nasdaq breaking to a new all-time high.

Many traders are anticipating a shift in Bitcoin’s price next week, once the holiday period concludes. As the final trading day of the year approaches, risk-off behavior is expected to influence commodities, which are heavily skewed to the upside. In this environment, Bitcoin is holding steady around its current levels, with $86,000 serving as key support. If Bitcoin can maintain this support, it may begin to grind back toward $90,000, setting the stage for a crucial breakout upward.

Record $24 Billion Bitcoin Options Expiry Expected to Drive Volatility

A major event on the horizon is the expiry of $24 billion worth of Bitcoin options, scheduled for Friday. This event is expected to bring increased volatility to Bitcoin’s price, as it includes around 300,000 Bitcoin option contracts, representing $23.6 billion in total. Over half of the open interest on major exchange Deribit will be impacted by this expiry. QCP Capital, a trading firm, noted that the “max pain” level for this expiry is set at $95,000, and the outcome could set the stage for future price movements.

Historically, Bitcoin has experienced 5-7% price swings during the Christmas period, often linked to year-end options expiries. This pattern suggests that Bitcoin could see significant movements after the options expiry. As market participants adjust their positions, Bitcoin’s price structure could change, with many analysts expecting a price breakout once the options expiry concludes.

Post-Expiry Outlook: Bitcoin Targeted for $100,000

Following the expiry, many traders are looking toward a potential price surge for Bitcoin. David Eng, a crypto executive, previously stated that the options expiry acted like a “lid” on Bitcoin’s price. He suggested that after the expiry, the structure of the market could change, potentially leading to an increase in price. Eng gave an initial target of $100,000 for Bitcoin following the expiry, emphasizing the volatility suppression before the event and the possible surge after.

Despite the relatively flat price action in the weeks leading up to the expiry, analysts believe Bitcoin has the potential to move higher once the options contracts are cleared. This could set a new path for Bitcoin’s price trajectory, possibly pushing it towards higher levels. Bitcoin’s long-term outlook remains positive, with many traders expecting a strong rally once the market adjusts post-expiry.

As Bitcoin’s options expiry approaches, the market is poised for increased volatility. Investors will be watching closely to see whether the expiry leads to a breakout or continued consolidation.

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