The recent rally in Bitcoin price, with it surging to $35,000, has reignited investor confidence and willingness to embrace more risk in the market. However, traders remain vigilant as they keep a close eye on the upcoming Bitcoin Options expiry, set for later today.
Notable Surge in Bitcoin Future and Open Positions
On-chain data provider Santiment reported a significant increase in Bitcoin futures and open positions, with open interest rising by $922 million in the past week. While this growth is encouraging, there is a watchful eye on potential FOMO (Fear of Missing Out) in the market.
In the last two days, Bitcoin has seen a partial retracement. It is currently trading 1.81% down at $34,118, with a market cap of $666 billion.
Crypto market analyst Ali Martinez suggests that Bitcoin may undergo a retracement before making further upward moves. On the hourly chart, BTC appears to have formed an ascending triangle. Given its current position below the diagonal line, there is an increased likelihood of a 5% correction towards the $33,000 level.
Another analyst, Rekt Capital, advises that when a retracement occurs in the coming months, it should be seen as an opportunity for re-accumulation. Market cycles are characterized by both breakout surges and pullbacks, allowing investors to consider adding during dips.
Bitcoin Options Expiry and Market Sentiment
Bitcoin traders are closely monitoring the options data as the expiry date approaches on October 27. Data from Greeks.Live indicates that 87,000 BTC options are set to expire, with a Put Call Ratio of 0.88, a max pain point at $29,000, and a total notional value of $2.98 billion.
Notably, BTC reached $36,000 earlier this week, marking a new annual high. This surge led to a spike in full-term implied volatility, nearing its peak for the year. Consequently, this week’s option delivery price will be notably distant from the max pain point.
Despite improved market sentiment, significant selling activity by a notable whale in the latter part of the week suggests that sustaining the ongoing bull market may be challenging. Bitcoin faces a critical test as it approaches the launch of the Bitcoin ETF.
The recent surge in BTC price has increased risk appetite among investors, but caution prevails as the market awaits the Bitcoin Options expiry. Traders closely observe options data while considering potential retracements and re-accumulation opportunities. Market sentiment has improved, but challenges lie ahead, notably with the upcoming BTC ETF launch.