1 Billion in Bitcoin Options Set to Expire Due to Whale SellOff Whats the Next Move

Coin World reports:
Data indicates that the maximum pain point for BTC is set around $61,000. BTC’s trading price is within the $53,000 range.
Bitcoin (BTC) is poised for a significant expiration of positions in its derivatives market.
This impending event is closely related to recent price trend fluctuations and may lead to increased market volatility.
The anticipated expiration could have a significant impact on market dynamics, as traders adjust their positions in response to the constantly changing price patterns.
Bitcoin Prepares for Options Expiration
According to AMBCrypto’s analysis of Bitcoin options, approximately 18,000 Bitcoin option contracts, with a notional value of about $1 billion, are scheduled to expire on July 5th.
The current put/call ratio in the BTC derivatives market is 0.65, indicating that the expiring bullish (long) contracts are almost twice that of the bearish (short) contracts.
Additionally, the maximum pain point for the greatest loss is set at $61,500. This level is far above the current spot price, especially after the market’s significant drop this week.
Moreover, a substantial amount of open interest remains at higher strike prices. Deribit data shows that $532 million worth of strike prices are at $90,000, and $665 million of open interest is at $100,000.
Furthermore, whale sell-offs have exerted additional downward pressure on market trends, intensifying the impact on prices.
More Bitcoin Options May Expire
AMBCrypto’s research on the distribution of Bitcoin supply indicates that whales have been continuously selling their Bitcoin holdings recently.
Specifically, wallets holding between 100 to 1,000 Bitcoins and 10,000 to 100,000 Bitcoins have seen a significant decline in the past few days.
These whale wallets have collectively participated in the sell-off of millions of dollars worth of Bitcoin.
Currently, the number of wallets in the 100-1,000 Bitcoin range is approximately 13,700, while the number of wallets in the 10,000 to 100,000 Bitcoin range is about 101.
This substantial reduction reflects a broader shift in sentiment among major Bitcoin investors.
Bitcoin Falls into Oversold Territory
AMBCrypto’s examination of the Bitcoin Relative Strength Index (RSI) on the daily timeframe price chart shows that Bitcoin is oversold. The chart indicates that, at the time of writing, it is below 30.
Read Bitcoin’s [BTC] Price Prediction for 2024-25
Moreover, Bitcoin’s trading price is around $53,300, below its long-term moving average (blue line). This blue line was initially a long-term support, but due to the recent price drop, it has become a resistance level.
This shift reflects the current market’s pessimistic sentiment. It plays a significant role in the dynamics of the large volume of Bitcoin options expiring today, which may influence trading strategies and market expectations.