Bitcoin options traders were hoping for a $ 60,000 monthly close, but the balance between purchases and sales suggests that the expiry of the period would not be an event.
Bitcoin’s (BTC) 2021 performance has been impressive, but traders waiting for a record-breaking monthly candle will likely be disappointed this week.
After rising to $ 64,900 on April 14, there was a 27% correction, causing the BTC price to drop to $ 46,000.
This downward move eliminated more than $ 9 billion long-focused BTC futures contracts in a swift action previously unthinkable for most investors.
Although the bitcoin price has recovered to $ 5,800 in the past 48 hours, the bulls in the options markets could not surprise the bears because both sides are almost balanced for the 30 April expiry.
The open position of total Bitcoin futures was $ 11 billion just three months ago, but this record was set at $ 27.7 billion on April 13. Nevertheless, this shows how significant the recent price correction effect is.
Meanwhile, options markets operate on a different basis as the contract buyer pays the premium upfront. Therefore, there is no risk of forced liquidation for the bearer. The call (buy) option provides top price protection to the buyer, while the sell option does the opposite.
Therefore, those looking for bearish-neutral strategies will rely primarily on sales options. On the other hand, the buying options are mostly used for bull traders.
While some exchanges offer weekly options contracts, monthly ones generally attract larger volumes. April will be no different for the expiry of the 72,000 BTC option contract worth $ 3.9 billion from the current $ 54,500 price.