Rallying Bitcoin and Ethereum Prices with Options Expiry Ahead
Bitcoin and Ethereum prices are on the rise, driven by bullish sentiment in the market. The Crypto Fear & Greed Index currently sits at “extreme greed” with a value of 78. As the market braces for the monthly expiry of $6 billion in Bitcoin and Ethereum options on Friday, February 23, traders are making put options bets to protect against potential price drops ahead of Bitcoin halving.
Bitcoin Options Expiry
A total of 71K BTC options with a notional value of $3.7 billion are set to expire on February 23. The put-call ratio stands at 0.76, indicating a profit booking scenario while remaining bullish. The max pain point is $47,000, suggesting potential volatility in the crypto market. Despite currently trading below $52,000, the BTC price remains higher than the max pain price.
- The call volume exceeded the put volume in the last 24 hours.
- The put/call ratio is 0.79, indicating bearish sentiment building in the Bitcoin market.
Ethereum Options Expiry
A total of 792K ETH options with a notional value of $2.3 billion are set to expire. The put-call ratio is 0.46, and the max pain point is $2,500. Traders are optimistic about Ethereum following its recent rally above $3,000, but a pullback is expected before Friday’s expiry.
- The call volume doubled the put volume in the last 24 hours.
- The put/call ratio is 0.40, suggesting bearish sentiment as ETH price fell below $3,000.
BTC and ETH Futures and Price Expectations
The rally in Bitcoin and Ethereum prices is supported by spot Bitcoin ETF inflows and pre-Bitcoin halving sentiment. However, there are headwinds on the horizon, including FOMC Minutes, Fed officials’ speeches, PCE data, and other unforeseen events that may exert pressure on the crypto market in the coming days.
According to the TD Sequential indicator, a Bitcoin sell signal has appeared on the 3-day chart. Previous instances of this signal resulted in a 10% price correction for BTC.
Crypto analyst Michael van de Poppe expects the primary scenario for BTC to remain bullish but anticipates a liquidity flush before any upside continuation. He also predicts a strong continuation for Ethereum until the Dancun upgrade.
Futures Open Interest
According to Coinglass data, total Bitcoin Futures open interest (OI) decreased by over 2.60% in the last 24 hours, with significant decreases on CME and Binance. On the other hand, total ETH Futures open interest (OI) increased by over 2% in the last 24 hours but decreased by 2% in the last 4 hours, indicating short-term bearish sentiment.
Hot Take: Brace for Options Expiry Impact on Bitcoin and Ethereum Prices
With the upcoming expiry of Bitcoin and Ethereum options, the market is likely to experience increased volatility. As an investor or trader, it’s important to stay informed about these events and monitor market trends closely. Keep an eye on the put-call ratios and price movements as they can provide valuable insights into market sentiment. Additionally, be aware of potential headwinds such as FOMC Minutes and other macroeconomic factors that could influence the crypto market. Stay prepared and adjust your strategies accordingly to navigate the potential impact of options expiry on Bitcoin and Ethereum prices.
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