Bitcoin Options Expiry: Bullish Setup Ahead

Bitcoins price has been trapped in a narrow range of $85,000 to $90,000 since December, due to derivatives trading. Options contracts, which allow traders to bet on price movements, have created a tight pin on bitcoins price. Dealers hedge their risks by buying or selling bitcoin in the spot market, causing a self-reinforcing trading range. With $27 billion in options expiring on December 26th, the pinning effect is fading, setting up a bullish scenario with almost three times more call options than puts, heavy open interest at strike prices from $100,000 to $116,000, and the max pain point at $96,000. Low implied volatility suggests a likely push toward the mid-ninety-thousands rather than a drop below $85,000.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.