$2.19 Billion Options Expiry Fuels Bitcoin's Path to $105K

Notably, the options expiry occurs following a rally in the spot market, with the Bitcoin price exceeding $100,000 again.

Yesterday saw the expiry of $2.19 Billion in Bitcoin (BTC) options, amounting to a total of 22,000 BTC options. The contracts that expired had a put/call ratio of 0.94.

Moreover, an expiry-related upmove saw the Bitcoin price extend its rally toward $103K, with a max pain price of $96,000. Similarly, on the same day, Ethereum (ETH) options valued at $617 Million expired. The token had a put/call ratio of 0.36 and a maximum pain price of $3250.

Notably, the options expiry follows a rally in the spot market, where the Bitcoin price crossed the 100K mark again. This helped to dispel the somber mood that often takes over the market at the end of the week.

Furthermore, this brought more energy to the overall cryptocurrency market. At press time, the Bitcoin price was trading at $103,289, seeing an increase of over 1.27% in the past 24 hours. Its market cap rose to $2.04 Trillion, and its trading volume jumped by over 20% intraday.

The key question that arises is whether the price will be able to sustain its upward trajectory beyond the 100K mark. Will it continue to rise before Donald Trump takes office?

With a massive OI of over $1.3 billion at a $110,000 strike price, it appears that the bulls are maintaining a strong positioning at that level. That price could serve as immediate support in the event of volatility in the upcoming sessions.

Prior to the expiry event, crypto analyst Captain Faibik outlined his bullish thesis in his post. According to the analyst, the BTC price has been on a strong uptrend and looks bullish on the daily chart.

With the current trend, a new ATH toward 114K might be seen by late January. However, a chance of a short-term pullback needs to be watched for a good entry to chase the rally toward 114K.

Ethereum Options Expiry Contributes to Bullish Market Sentiment

In addition to Bitcoin, Ethereum’s options market also saw significant activity. By the end of the day, 182,000 Ethereum options had been granted, totaling around $617 Million.

This optimism in the options market is fueled by Ethereum’s inability to sustain crucial resistance levels, suggesting that the impact of the expiring options might be less for the token as compared to Bitcoin.

As depicted in the chart above, the ETH price faced resistance at around $3500 and failed to cross the supply region. It was trading at $3292 at press time, indicating a decrease of over 2.37% in the past 24 hours.

From the daily chart analysis, the Ethereum crypto forms a falling wedge pattern and faces higher-level resistance. It made a bearish engulfing candlestick yesterday, and the ETH price slipped below the $3320 support zone.

While the Bitcoin price kicked off the 100K barrier and outperformed the market, Ethereum’s performance has been lackluster in comparison, stalling around the $3400 level.

This article is intended for informational purposes only and does not provide financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please conduct your own research before making any financial decisions.