Bitcoin Bulls Eye Options Expiry: Will BTC Hit $106K or Tumble?

Bitcoin bulls are gearing up for the $20 billion monthly options expiry. Will they maintain momentum above $106,000, or will bears drag the price down?

Bitcoin Bulls Eye Options Expiry: Will BTC Hit $106K or Tumble?

Bitcoin's upcoming $20 billion monthly options expiry on June 27th has traders on high alert. After a recent price recovery, can the bulls solidify support and aim for new highs, or will the bears seize control?

The Bullish Setup

Currently, call options outweigh put options ($11.2 billion vs. $8.8 billion), giving bulls a distinct advantage. A significant portion of put options have strike prices at $101,000 or lower, further bolstering the bullish sentiment.

Powell's Dovish Tone and Market Sentiment

Federal Reserve Chair Jerome Powell's recent comments about potential interest rate cuts have fueled optimism. Coupled with gains in the S&P 500, Bitcoin bulls believe investors may shift from short-term government bonds to riskier assets like BTC in search of higher returns.

Probable Scenarios and Key Price Levels

Here's a breakdown of potential outcomes based on price ranges:

• $100,000 - $101,500: Balanced result
• $101,500 - $102,500: Calls favored by $235 million
• $102,500 - $104,500: Calls favored by $750 million
• $104,500 - $106,000: Calls favored by $1.41 billion
• $106,000 - $108,000: Calls favored by $2.1 billion

The Bearish Counterattack

For bears to minimize losses, they need to push Bitcoin below $101,500 by June 27th, a 5% decline from current levels. Increased uncertainty, potentially stemming from a drop in hashrate or geopolitical tensions, could aid their cause.

The ProCap Factor

Anthony Pompliano’s ProCap BTC LLC is merging with Columbus Circle Capital Corp. I, aiming to become a publicly traded Bitcoin-focused treasury business. This move, backed by substantial committed capital, signals further institutional interest and potential bullish momentum for Bitcoin.

Options Expiry and Market Volatility

With a massive $14 billion in Bitcoin options contracts expiring on Deribit, expect heightened volatility. The “max pain” point sits at $102,000, where option buyers would suffer the most. Market flows suggest a neutral bias with a slight bullish tilt, with traders eyeing the $100K-$105K range.

Final Thoughts

So, will Bitcoin bulls maintain their grip, or will the bears crash the party? Only time will tell! Buckle up, folks, because it's gonna be a wild ride!