The crypto market has been lacking in volatility lately. Over the past two weeks, Bitcoin price has mostly hovered around $19,000. After recording just 0.4 percent daily gains, the top coin was currently trading at $19,200.
Bitcoin options expire
In one day, nearly $538 million worth of Bitcoin will expire. Currently, most traders are in a downtrend as sales dwarf calls. The open interest (OI) call to expire on Thursday, October 21 is currently stuck at 12,272.4 BTC. Put options amounted to 15,728.8 BTC. As a result, the buy/sell ratio remained at 0.78, ie below 1. As shown below, most bearish bets were placed at the 19,000 and lower price levels. Call options were made upwards.
What does this mean?
Bitcoin has been trading below all major daily averages since the beginning of this month. Large, small and medium-sized investors continue to increase their HODLing. However, the price remains stagnant. According to experts, metrics like the RSI are currently neutral. This points to sluggish demand. Therefore, if no purchases take place during the night, the price was expected to remain stable around $19,000. However, BTC is currently below $19,000.
Therefore, according to analysts, if Bitcoin trades below $19,000, it will be very difficult for traders who bought the put option to resist using the option to sell their own money. If that happens, there will be traders in the driver’s seat with a bearish trend. According to experts, in such a case, the price of the asset could drop to $18.5k in the short term. On the upside, however, the path to $21,000 looks challenging given the middle hurdles and the current market situation.
BTC drops below $19,000
At this stage, it’s worth noting that Bitcoin’s spot market dominance has been on the rise lately. A recent tweet from CryptoQuant CEO Ki Young Ju highlighted that BTC spot trading volume for all exchanges has increased 20x over the past six months. Options, on the other hand, have not seen a big slop. Therefore, it is possible that there will be no change in price.
BTC, the largest cryptocurrency by market cap, is changing hands at $18,979 at the time of writing. It fell 0.8 percent in the last 24 hours. The fact that the cryptocurrency is trading below $19,000 indicates the density of options for selling. As we reported on Kriptokoin.com, the overall cryptocurrency market followed BTC. In the last 24 hours, the overall market cap has dropped 1.4 percent.
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