Bitcoin bulls aim for prices above $58K before Friday’s expiry of the $820M options

$820 million in BTC options expire Oct. 15. Data signals that bulls are ready to celebrate another positive week.
Everyone is talking about a six figure Bitcoin (BTC), price now that the digital asset has broken from its multi-month downtrend. This confirms that there is a bullish trend. If Bitcoin makes a parabolic move towards $110,000, it would match PlanB’s Stock to-Flow model prediction. According to the anonymous analyst, the scarcity and valuations of gold and other precious metals, “Elon Musk’s energy FUD and China’s mining crackdown” are some of the factors that have caused the model to be inaccurate for five months. Bulls hope that the United States Securities and Exchange Commission will approve an exchange-traded fund. There are currently multiple requests awaiting review between Oct. 18th and Nov. 1. However, the regulator could delay its final decision. Oct. Source: TradingViewThe $830 million options expiry for 15 was largely affected by the Oct. 4 price rally, which most likely eliminated 92% (put) options. Source: TradingView. The aftermath of China’s crackdown on mining was an important event that may have fueled investor sentiment. Research shows that the U.S. accounts for 35.4% in the Bitcoin hash rate. Cointelegraph reported that the U.S. states Texas and Ohio will receive additional large-scale Bitcoin miners. This is evident in Friday’s $820m expiry. This is why the open interest in call (buy) options is 43% higher than that for neutral-to-bearish options. Source: Bybt. Bears placed $335,000,000 in bets for Friday’s expiry. However, it appears that 92% of the neutral-to-bearish options are likely to be worthless. Below are the most likely scenarios for Oct. 15’s expiry. The theoretical profit is represented by the imbalance favoring one side. The theoretical profit is the difference in the number of active call (buy) or put (sell) contracts depending on the expiry prices. For example, between $52,000 and $54,000, there are 3,140 calls and 2,110 puts. The net result favors the call (bull), which is $55 million. Between $54,000 and $56,000, there are 3,700 calls and 1,240 puts. The net result favors the call (bull), instruments. Between $56,000 and $58,000, there are 4,850 calls vs. 680 put. The net result is $235,000,000 favoring the call bull instruments. Above $58,000: 6,230 called vs., 190 puts. The net result is total dominance with bulls making $350 million. Investors might have used a more complicated strategy, which often involves different expiry dates. Bears require a 7% price correction in order to reduce their loss. In every scenario, bulls have complete control over Friday’s expiry. There are only a few reasons that they should keep the price above $56,000. Bears must make a 7% decline below $54,000 to avoid a loss greater than $235 million. However, traders should remember that during bull runs, the amount required by sellers to push the price down is enormous and often ineffective. Analytics show that call (buy) options have a significant advantage, which will fuel more bullish bets next weekend. Risk is inherent in every investment or trading move. Before making a decision, you should do your own research.

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