Bitcoin and Ethereum Face $2.04 Billion Options Expiry Test

Bitcoin and Ethereum Face Crucial Test with $2.04 Billion Options Expiry

Today marks a significant event in the cryptocurrency market as approximately $2.04 billion worth of Bitcoin (BTC) and Ethereum (ETH) options are set to expire. This expiration often leads to notable price volatility, making it a crucial test for both cryptocurrencies.

Expiring Bitcoin options have a notional value of $1.62 billion, with a put-to-call ratio of 0.76 and a maximum pain point of $98,000. On the other hand, Ethereum has 153,608 contracts with a notional value of $421.97 million, a put-to-call ratio of 0.48, and a max pain point of $2,700.

At the time of writing, Bitcoin trades at $98,215, a 1.12% increase since Friday's session opened. Ethereum trades at $2,746, marking a 0.20% decrease. The put-to-call ratio below 1 for BTC and ETH suggests a prevalence of purchase options (calls) over sales options (puts). However, according to the max pain theory, both cryptocurrencies could gravitate toward their respective strike prices as the expiration time nears, causing most options to expire worthless and inflicting "max pain".

Analysts at Greeks.live noted a cautiously bearish sentiment in the market, with low volatility frustrating traders. They suggest ongoing concern among traders and investors, particularly around Bitcoin, with traders closely monitoring key price points.

Bitcoin trades around $98,243, hovering above a critical demand zone between $93,700 and $91,000. This area has previously acted as strong support, indicating buyers may step in to defend these levels. A key supply zone is positioned at around $103,991, where selling pressure has historically been significant. BTC has struggled to break past this level, making it a major resistance to watch.

From a price action perspective, BTC has been forming lower highs and lower lows, suggesting a short-term bearish trend. However, the recent price movement hints at a possible