As the Bitcoin options traders gear for Friday’s expiry, the BTC traders maintain a cautious stand ahead of the US jobs data release. Ahead of today’s expiry, the BTC bears have been putting further selling pressure with the Bitcoin price slipping under $56,000 as of press time.
Bitcoin Options Traders Maintain Caution
As per Deribit exchange data, nearly 14,000 Bitcoin options are set to expire today with a notional value of $760 million. The Bitcoin options expiration data shows a put-call ratio of 0.81 along with a max pain point of $59,000. Although the put-call ratio is under 1, the BTC options open interest has been on a decline dropping to $18.35 billion from over $20 billion earlier this week.
Thus, the options data largely reflects the weakness in the broader market. Furthermore, the implied volatility for Bitcoin options is also on the rise hinting at a bearish sentiment for BTC and the broader crypto market.
Historically, September has been a bearish month for Bitcoin and the broader crypto market in usual. As a result, BTC bears are likely to have the upper hand with top market analysts like Peter Brandt predicting a Bitcoin price crash to $46,000.
Trends in the Bitcoin options market also support this view with investors hedging against the volatility risks tied to the macroeconomic events such as the upcoming U.S. Non-Farm Payroll report on Friday, Sept. 6, as well as the Fed rate cut scheduled ahead this month.
Bitcoin Price Crash Likely Amid Strong Bearish Action
With the Bitcoin price already slipping under $56,000 levels, some of the top market analysts have been predicting the BTC price to correct another 12-15% from here onwards. BitMEX CEO Arthur Hayes also joined the BTC bear camp expecting sub $50K level by this weekend.
On the technical chart, the Bitcoin price continues to form lower highs and lower lows while showing a possible crash to $49,000 levels. On the other hand, the Bitcoin ETF outflows have also surged showing the lack of institutional participation currently in the market.
Crypto analyst Rekt Capital also pointed out that Bitcoin flipped the key support level of $58,286 into a resistance, breaking down from the below channel pattern. If Bitcoin fails to close above this resistance in this week’s closing it would confirm a bearish action moving ahead signaling growing concern as the market awaits further direction.
Lastly, the Bitcoin whale activity has also been discouraging recently reduced confidence in the asset class in the near term.
