BTC Price- Bitcoin’s Max Pain Price vs. Current Trading Gap Widens
BTC Price– Bitcoin (BTC) maintained a modest gain of 1.29%, trading just above the $100,000 mark this month. However, with approximately $3.04 billion in BTC options set to expire today, market calm may soon give way to increased volatility.
Max Pain Level vs. Current Price
According to AMBCrypto, the Max Pain price for Bitcoin options is $107,000, yet BTC is currently trading below that level at around $104,682. This gap indicates potential losses for traders holding large option positions, particularly those expecting prices near the Max Pain point, while short sellers might benefit.
Traders dominating a large portion of the notional value are likely to face significant losses.
This dynamic typically leads traders to open additional short positions to hedge losses or take profits, and recent data confirms this trend.
Over the past 24 hours, Bitcoin’s Options Open Interest (OI) increased by 3.88% to $46.06 billion, with trading volume doubling to $7.06 billion—a 107.64% surge. Such activity amid a falling price and major expirations suggests bearish sentiment is growing among traders.
Liquidation data reveals longs suffered a loss of $422.89 million in the last day, whereas shorts lost only $28.63 million. The Long/Short Ratio of 0.929, below 1, further confirms sellers currently dominate the market.
Spot Investors Remain Resilient
Despite bearish pressures, spot investors show strong accumulation. Over 24 hours, $150.70 million worth of BTC moved into exchanges, while weekly accumulation surpassed $651 million. Additionally, Bitcoin spot ETFs saw $86 million in purchases, contributing to nearly $982 million in buy-ins over three days.
While these large inflows could positively influence sentiment, a swift price rebound—specifically a $3,000 recovery before options expiration—appears unlikely. If no reversal occurs, Bitcoin may face further downward pressure.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
