On March 25, concerns surrounding the record-breaking $6.1 billion (BTC) options expiry this Friday sparked an overnight sell-off that dropped Bitcoin price to $50,400. The downturn was not a surprise for many traders and some called for a possible test of the $47,000 support level. Despite Bitcoin's loss of bullish momentum, several derivatives indicators, including a bullish futures premium and a neutral skew, suggest that the price may not drop below $50,000. While technical indicators paint a mixed picture of Bitcoin's short-term price action, the asset retains strong fundamentals today media reported that sovereign wealth funds have begun inquiring about …

Earlier this week, Cointelegraph reported the importance of the upcoming $6.1 billion Bitcoin (BTC) options expiry on March 26. The article made clear that bulls were in control if one excluded the put (sell) options below $47,000, which is likely the case as BTC currently hovers above $50,000. As the expiry date draws closer, it's less likely that traders will be willing to pay for the right to sell BTC at $47,000. The same could be said for the ultra-bullish call (buy) options at $60,000 and above. Therefore, the $6.1 billion total open interest is heavily inflated by worthless options. …

Bitcoin (BTC) is showing tenacity above $50,000 on March 25. The 10% drop over the last 24 hours happened despite Tesla allowing customers to buy vehicles using BTC in addition to CEO Elon Musk affirming that it will not be converted to fiat currency. On March 22, the United States Federal Reserve chair, Jerome Powell, stated that Bitcoin was too volatile, "backed by nothing," and more of an asset for speculation. Curiously, on that same day, BTC lost its $56,000 support, which became a resistance. Traders worry that the pump might have been news-driven, while the downtrend movement shall prevail. …

Bitcoin’s (BTC) price has been in retreat, down 20% since the recent all-time high at $62,000 in mid-March. As crypto markets are frequently volatile, this may very well be another normal pullback within the current bull cycle. Corrections are needed to generate strength for further upward momentum as markets can’t go up in a straight line. Additionally, a record $6 billion expiration of options is expected on March 26, which often brings some volatility. It is also quite common for the market's momentum to shift momentum once the options expiration date comes and goes. $53K level has to become support …

Bitcoin's (BTC) upcoming March 26 options expiry might become the largest ever, with $6.1 billion open interest on the line. With less than 4 days ahead of the settlement date, pro investors will have already set up strategies for the next month. As BTC price has already surged 72.7% since February, most traders are skeptical of another rally taking place over the next couple of weeks. Nevertheless, the $55,000 support has shown strength and is a signal that the uptrend is intact. Whales and arbitrage desks are somehow optimistic, as reflected by the futures contracts premium and top traders' long-to-short …

Bitcoin (BTC) briefly reclaimed the $60,000 level on March 18 as concerns over the strength of the equities market mounte due to rising U.S. Treasury yields. Data from Cointelegraph Markets and TradingView shows that the price of Bitcoin began increasing in the late-night trading hours on March 17, and it briefly crossed above $60,150 before meeting overhead resistance. According to Ben Lilly, an analyst and co-founder of Jarvis Labs, momentum from stablecoin issuance has translated into good price action for BTC over the past two days. This is in contrast to the stop-and-go action in new issuance seen earlier in …

Betting on an $80,000 Bitcoin call options for June doesn't seem outrageous given BTC's bullish performance over the past few weeks. This was not the case a couple of months ago when BTC peaked at $42,000 on Jan. 8 and subsequently dropped to the $30,000 level. At that time, a 150% upside was needed from the $32,000 price on Jan. 26, and this seemed quite far-fetched. Therefore, the June $80,000 BTC call (buy) options traded at Deribit for $2,240, or 0.07 BTC. Less than two months later, as BTC reached $61,700 on March 13, the same call option peaked at …

Over the past two months, the open interest on Bitcoin options increased by 60% to reach $13.5 billion as the BTC price rose to a new all-time high. The result of Bitcoin's price appreciation and the rising options open interest resulted in a potentially historic $6.1 billion expiry set for March 26. Most exchanges offer monthly exposures, although a few also hold weekly options for short-term contracts. Jan. 29, 2020, had the largest expiry on record as $3.5 billion worth of option contracts expired. This figure represented 36% of all open interest at that time. The above data shows that …

The most basic Bitcoin (BTC) options contracts involve buying a call which gives the holder the opportunity to acquire the asset at a fixed price on a set date. For this privilege, the buyer simply pays an upfront fee, known as a premium, to the contract seller. Although this is a great way to use leverage while avoiding the liquidation risk that comes from trading futures contracts, it comes at a cost. The options premium will rise during volatile markets, causing the trade to require even further price appreciation to generate a reasonable profit, so the premium is a metric …

With BTC again edging toward all-time highs, a large volume of money is flowing into the Bitcoin derivatives markets. According to crypto market data aggregator Glassnode, outstanding futures contracts pushed into new all-time highs on March 11, with open interest across exchanges approaching $20 billion. More capital is flowing into the derivatives markets, as the amount of outstanding #Bitcoin futures contracts reaches another ATH. Open interest across major exchanges is currently sitting at the verge of the $20B mark. Chart: https://t.co/ygoffzMSJW pic.twitter.com/BiJIpyTKDD — glassnode (@glassnode) March 11, 2021 Options have also surged to see record volumes in 2021, with Derebit …

Bitcoin (BTC) price might have re-established $50,000 as a support, but the optimism of professional traders is nowhere near the levels seen before the 26% drop to $43,000 on Feb. 28. The current scenario is far from bearish, but derivatives indicators do not reflect the substantial purchases from institutional clients, including Microstrategy, Meitu, and most recently, Aker ASA, a Norweigian oil conglomerate. The longer Bitcoin stays above a certain threshold, the more confident investors get. For example, the last daily close below $45,000 was 28 days ago. Therefore it might take a couple of weeks until a more robust support …

Historical data shows that it is nearly impossible to consistently predict Bitcoin’s price action and many traders that attempt this end up losing money. Now that Bitcoin trades near $50,000, the ultimate goal for most traders is to hold on to their current holdings and incrementally add to them in a way that is not terribly risky. Options strategies provide excellent opportunities for traders who have a fixed-range target for an asset. For example, using leveraged futures contracts might be a solution for a scenario where one expects a price increase of up to 28% over the next month. Of …