As we continue to live the last days of 2023, Bitcoin The market continues to closely monitor options expiring on December 29. Increasing volatility and speculation have brought to light predictions about the movements that the BTC price may make in the near future.
The zone, also called the “call wall”, currently points to $40,000. It is so named because of the preponderance of call options that will expire at this particular price point.
When we examine the numbers, it can be seen that the current options are holding strong at 177,000 BTC. However, it is the allocation within these assets that is important. Surprisingly, 106,000 BTC is tied to call options, while 70,000 BTC is tied to put options. This dichotomy indicates a put/call ratio of 0.66, an established barometer of market sentiment. In particular, a ratio below one traditionally indicates an upward trend and indicates that the market expects an upward trajectory in prices.
The most important detail that draws attention in the current data is that the nominal value of these positions is approximately 7.7 billion dollars. This is one of the clearest evidence of its impact on the market.
The options market appears to be leaning firmly towards pegging $40,000 as a fair valuation level for Bitcoin. This is clearly visible in the option data, which reflects the common opinion of many traders.
While the options market provides invaluable information about sentiments and potential price trajectories, it is important to note that it is not the sole determinant of Bitcoin’s trajectory. External factors such as regulatory changes, macroeconomic trends and technological developments continue to have an impact on the crypto space.