Weekly Bitcoin this Friday (Bitcoin) The option expires and currently holds an open position of USD 330 million. Considering the recent efforts to regain the $32,000 support level, this event is an important test of the willingness of the bulls to show signs of reversal.
On July 21, Alameda Research announced that The company bought less than $30,000 in Bitcoin, The company’s quantitative trader Sam Trabucco mentioned that due to the continuing fear, uncertainty and doubt (FUD) caused by China’s BTC mining ban, the BTC narrative may turn bullish. Grayscale GBTC unlock And the recovery of the stock market.
The above chart shows that if the price breaks through the $32,200 resistance level, the current downtrend channel that started three weeks ago may become invalid. This move seems to be triggered by Elon Musk’s statement that his company SpaceX also holds Bitcoin.
In a meeting with Cathie Wood and Jack Dorsey on July 21, Musk said that despite the rumors, he was completely opposed to recent speculations about Tesla selling some bitcoin positions.
— New York Post (@nypost) May 17, 2021
It is worth noting that these rumors have certain support only because Musk has sent conflicting signals on social networks. and, Tesla has previously sold 10% of its Bitcoin holdings In the last month.
The $32,000 support level is crucial for the bulls
The option expiration on Friday may be the first strength test of the recent rebound. If the bulls want to use $32,000 as support, there is no better way to do the most damage to neutral to put puts.
The first signal that shorts are trying to dominate is the put option ratio. The 0.81 reading reflects a small number of neutral call (buy) options expiring on July 23.
However, shorts may set themselves a trap because 96% of put options use strike prices of $32,000 or lower. If Bitcoin manages to stay above this level at 8:00 AM UTC on Friday, only $8 million of put options will participate in expiration.
On the other hand, call options valued at US$29 million have a strike price of US$32,000. This $21 million difference is good for the bulls. Although small, it is the exact opposite of a maturity date of less than $32,000.
If the $32,000 fails to hold, the short position will lead by $9 million because only 9% of the call options are placed at $31,000 or less.
Neither of these results are extremely important, but the profits can be used for larger monthly options that will expire on July 30. This is the main reason why the bulls need to hold their ground to maintain the current momentum.
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