The cryptocurrency market has exhibited a partial recovery. However, leading crypto Bitcoin failed to stay above $67,000. The leading altcoin Ethereum lost altitude. Besides, today is critical for these two giants. Because today, 18,060 BTC options with a nominal value of $ 1.21 billion will expire. Additionally, 270,441 ETH options with a nominal value of approximately $0.89 billion will also expire. QCP Capitals predicts that BTC and ETH prices may recover from lower levels.
Critical day for two giant cryptocurrencies: Expiration of options!
cryptokoin.comAs you follow from, Bitcoin and Ethereum prices go back and forth in volatile market conditions. Traders are mostly staying away from new trades amid uncertainty in the crypto market. Additionally, traders and investors are preparing for over $2 billion worth of Bitcoin and Ethereum options expiring on Friday. The market witnessed one of the largest crypto options deals worth over $15 billion last Friday. After that, the market expects over $2 billion worth of options to expire to clear up some uncertainty.
Maximum pain points for Bitcoin and Ethereum
More than 18,060 BTC options with a face value of $1.21 billion will expire with a put-call ratio of 0.63. The maximum pain point is $68,000. This shows that there is pressure on Bitcoin right now. Although downward pressure on implied volatility (IV) has been lifted, choppy price movements are expected. Traders continue to be bullish on BTC price rising above $70,000 this week.
BTC buying volume in the last 24 hours is higher than the selling volume of 10,817, 8,076. Put-Call ratio is 0.75.
Meanwhile, 270,441 ETH options with a face value of approximately $0.89 billion will expire with a put-call ratio of just 0.38. The maximum pain point is $3,400. This is higher than the current price of $3,287. This suggests that the ETH price could fall further if it cannot rise above the maximum pain point. For further guidance on ETH price directions, it is necessary to keep an eye on trading volumes.
ETH buying volume in the last 24 hours is 155,690 and selling volume is 49,100. Call open positions are higher than put open positions and the put-call ratio is 0.31.
Bitcoin’s latest rally has triggered broad market recovery
Analysts at QCP Capital say BTC price is in a tight situation after falling below $70,000 and there is not enough Bitcoin ETF flows to catalyze price movement in either direction. However, the demand for BTC long positions continues. This, along with some upward momentum in spot Bitcoin ETF inflows, will support the BTC price, according to analysts. There is even a possibility of pushing BTC above $70,000 by the end of the week. ETH/BTC tested a critical support level after falling below 0.05. The big sell-off in ETH calls continues. This reduces volumes and puts some downward pressure on the ETH price.
ETH/BTC is currently at a 2-year low as Bitcoin halving approaches. Analysts are still expecting a bounce from these levels. However, it is useful to be alert for possible further declines.
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