Bitcoin Price Action Set to Reset Post Options Expiry
Bitcoin (BTC) saw a notable 2% gain on Friday, with the Asia trading session sustaining the upward move. Data from TradingView highlighted the market’s cautious optimism ahead of a massive Bitcoin options expiry event worth nearly $24 billion, which traders considered a potential reset for price dynamics.
As Cointelegraph reported, market participants viewed the expiry as an opportunity for the hedging pressure compressing BTC’s price to ease. Trader BitBull commented on X: “As these contracts roll off, the hedging pressure that’s been keeping price compressed starts to disappear. After that, price action reflects real positioning again, not derivatives mechanics. That’s when direction usually becomes clearer.” He noted that recent Bitcoin movements lacked an “organic” component due to the influence of options.
Market Outlook and Analyst Insights
Crypto analyst Michaël van de Poppe highlighted improving conditions after the new year, writing on X: “January is a period where asset managers are reallocating their assets… But yes, indices are still fine, and mostly, it’s Crypto and Bitcoin.” Van de Poppe also pointed to continued outperformance in gold and silver, noting record highs on the day. According to Infinite Market Cap, silver had overtaken Bitcoin by market cap to become the world’s third-largest asset, behind gold and Nvidia.
BTC Price Analysis
Short-term Bitcoin movements remained rangebound, with both long and short entries difficult to gauge. A move toward $90,000 triggered over $200 million in liquidations within 24 hours, per CoinGlass data. Analytics account Crypto Ideology emphasized that “the daily close is key,” showing BTC attempting to break a two-month downtrend. “A confirmed breakout opens a move toward $95k, where the real test lies. Acceptance above $95k would likely lead to a move toward the weekly MA50, around the 100k zone.” At the time, BTC’s 50-day SMA and EMA were $91,458 and $92,651, respectively.
Van de Poppe described crypto as “significantly undervalued and mispriced,” predicting a return of liquidity and a potential rematch with all-time highs in the coming months.
