• Crypto & Funx
• 30 May, 2024

Bitcoin's options data shows a bearish sentiment with a put-to-call ratio of 1.09, suggesting the possibility of a brief price correction.

Analyst Ali Martinez forecasts a potential dip to $97,085, though a close above $100,470 could invalidate this bearish outlook.

Ethereum options expiry is also imminent, with a bullish market sentiment indicated by a put-to-call ratio of 0.66.

Just as the cryptocurrency market is heading for a weekly expiry, Bitcoin price has rallied to its new all-time high of $99,502 with its market cap at $1.95 trillion. A total of $2.86 billion in Bitcoin options will expire today hinting at crypto market volatility ahead.

The substantial expiration event could trigger short-term price volatility, especially as markets eagerly anticipate Bitcoin reaching the $100,000 milestone.

A Look into the Bitcoin Options Expiry Data

Data from Deribit shows that 28,905 Bitcoin options contracts are set to expire on Friday, featuring a put-to-call ratio of 1.09 and a maximum pain point of $86,000.

The put-to-call ratio, which measures market sentiment, currently stands above 1, signaling bearish sentiment despite recent growth fueled by Bitcoin whales and long-term holders.

Courtesy: Deribit

While everyone is expecting a Bitcoin price breakout above $100K, there could be a brief correction ahead before it finally happens. According to crypto analyst Ali Martinez, the TD Sequential indicator has flashed a sell signal on Bitcoin’s 4-hour chart, suggesting a potential correction toward $97,085.

Courtesy: Ali Charts

However, if Bitcoin manages a candlestick close above $100,470, it could invalidate the bearish pattern. In such a scenario, BTC may climb to targets of $102,656 or $104,343, noted Martinez.

Ethereum Options Expiry and Analyst Predictions

A total of 164,687 Ethereum options contracts are set to expire today, with a put-to-call ratio of 0.66 and a maximum pain point of $3,050. The lower put-to-call ratio reflects a generally bullish sentiment in the ETH market.

As of press time, Ethereum is trading at $3,389. Analysts at Greeks.live suggest Ethereum could see continued upward momentum in line with the bullish put-to-call ratio, while Bitcoin appears poised for a potential correction. They :

“With about 8% of positions expiring this week, the big rally in Ethereum has led to a significant increase in ETH major term options IV [implied volatility], while BTC major term options IV has remained relatively stable. The market sentiment remains extremely optimistic at this point”.

“With about 8% of positions expiring this week, the big rally in Ethereum has led to a significant increase in ETH major term options IV [implied volatility], while BTC major term options IV has remained relatively stable. The market sentiment remains extremely optimistic at this point”.

Analysts highlight that despite Bitcoin’s risk of a correction, the broader market rally may prevent a significant pullback. This could be due to the substantial capital inflows into ETFs, particularly BlackRock’s newly launched IBIT options. Yesterday, BlackRock’s IBIT clocked $5 billion in trading volumes.

Also, the total inflows into spot Bitcoin ETFs yesterday crossed over $1 billion with IBIT alone contributing more than $600 million.