For this next January 29, the bulls predominate in the sentiment of the traders in the Bitcoin options that will expire. At least that shows some key metrics regarding those options, which have a record $ 4 billion.
It is extremely important to keep in mind the loss of momentum in the price of Bitcoin, especially in recent days. At first glance, this does not seem to favor an optimistic outlook. However, the bullish sentiment (and at least neutral), it seems that it will be the predominant one.
Another important aspect is that of those $ 4 billion that are due on January 29, not all have a uniformly bullish figure. It should be remembered that this amount is divided between call options and put options. In that same respective order, the former are from neutral to bullish and the latter are bearish.
How strong are Bitcoin bulls in options that expire this Friday?
To know how far the capacity of the bulls goes against this expiration of the Bitcoin options, some extremes must be ruled out. In that sense, explains the CoinTelegraph portal, that more than 69% of the purchase options for January 29, were opened at $ 40,000 or more. This price, given the retracement of Bitcoin, must be discarded for the calculation.
On the other hand, options that were opened to the other extreme, to the bearish, and below $ 25,000 should also be discarded. Thus, the latter represent 76% of open participation.
This calculation results in that, of the $ 4 billion due this Friday, some $ 745 million are below $ 40,000. In the other window, the most bearish options (above $ 25,000), amount to about 300 million dollars.
In this way, it can be said that the bulls maintain a certain predominance in the Bitcoin options that are soon to expire. The price falls of the leading cryptocurrency were not contemplated for most traders, however, the recent falls have not been synonymous with panicking.
$ 32,000 Options Strengthen Bearish Sentiment?
Although bulls have the overall advantage in Bitcoin futures options, bears are not far behind. Consequently, the more bearish options have dominated the 32K and 35K closes.
Despite this, as already indicated, the bulls seem to comfortably dominate the expiration of this Friday, January 29. It must be said that the incentives between 29K and 35K are relatively neutral, something that could affect the performance of the bullish sentiment.
An analysis over this whole panorama shows that, despite the dominance of the bulls in these future Bitcoin options, there does not seem to be a determining advantage. In this sense, high volatility should not be expected. In short, it could be said that the January 29 result will not significantly disrupt Bitcoin’s behavior in the short term.
Data to take into consideration
- This Friday the options of Bitcoin futures contracts expire, where the bulls maintain a not very wide dominance.
- This would result in minimal impact on the price of the pioneer cryptocurrency.
- Some $ 4 billion of these options, due to expire on January 29, represent a record number.
- Of this total, $ 3.1 billion is traded on the Deribit exchange platform.