Bitcoin bulls set prices above K 58K before Friday’s $ 820M option expires

Everyone is now talking about the six-digit bitcoin (BTC) price as the digital asset has come out of its many-month downward trend and confirmed that a bright trend is underway.

If Bitcoin enters a parabolic move towards $ 110,000, it will eventually match PlanB’s stock-to-flow model forecast. According to pseudonym analysts, the lack and evaluation of gold and other precious metals and a few factors are responsible for the last five months for 50% or more errors in the “Elon Musk’s Energy FUD and China Mining Crackdown” model.

The bull’s hope mostly clings to one Exchange-traded funds are approved by the U.S. Securities and Exchange Commission. Currently, there are multiple requests for review from 18 October to 1 November, but the regulator may suspend its final decision.

The expiration date of the 15 830 million option on October 15 was affected by the 20% price rally starting October 4, which probably eliminated 92% of the put (sell) option.

Bitcoin prices in Coinbase in USD. Source: Tradingview

An important event in the aftermath of China’s mining crackdown that could boost investor sentiment, and studies have shown that the bitcoin hash rate is .45. %% in the United States.

In addition, as Cointelegraph reports, Texas and Ohio in the United States are expected to receive additional large-scale bitcoin mining centers, which will effectively boost U.S. crypto market share.

Oct The October term was profitable for bulls

After an estimated net profit of 37 370 million from the expiration of the BTC option last week, the bulls had more firepower and this was evident in Friday’s 2020 million expiration. This advantage explains why the call (buy) option is 43% larger than the open interest neutral-to-bearish put option.

Bitcoin Options Total Open Interest for October 15th. Source: BBT

According to the data above, the Bears had placed a 335 million bet for Friday’s expiration, but it turns out they were surprised, as the put (sell) option is likely to become 92% worthless.

In other words, if Bitcoin is above 56 56,000 on October 15, neutral-to-bearish put options worth only 36 36 million will be activated after Friday’s 8:00 UTC expiration.

There is reason to push the price of BTC above 58 58,000

Below are four possible scenarios for the October 15 deadline. The imbalance on both sides represents theoretical gain. In other words, depending on the expiration price, the amount of the activation call (buy) and hold (sale) contract varies:

  • Between $ 52,000 and 54,000: 3,140 calls vs. 2,110 pts. The net result is পক্ষে 55 million in favor of the bull (bull) machine.
  • Between 54,000 and 56,000: 3,700 calls vs. 1,240 pts. ফলাফল 130 million in favor of net result call (bull) instrument.
  • Between 56,000 and 58,000: 4,850 calls vs. 680 pts. The net result is পক্ষে 235 million in favor of the bull (bull) machine.
  • Above 58,000: 6,230 calls vs. 190 pts. The net result is complete dominance, with the bulls gaining $ 350 million.

These raw speculation call options are exclusively used in bullish bets and consider options in neutral-to-bearish trades. However, investors can use more complex strategies that typically include different expiration dates.

7% price correction is required to reduce bear losses

In each scene, the bulls have complete control over this Friday’s expiration and there are several reasons to keep the price above ৫ 556,000 for them. On the other hand, Bear needs a 7% negative move below $ 54,000 to avoid losses of $ 235 million or more.

Nonetheless, traders must consider that, when running a bull, the amount of effort required to price a seller is substantial and generally ineffective. The analyzes point to a significant advantage over call (purchase) options, which provide even more bullish bets in the coming weeks.

The opinions and views expressed here are only their opinions Author And don’t necessarily reflect Cointelegraph’s opinion. Every investment and trading move involves risk. You should do your own research when making decisions.