The crypto market pulled back sharply during the US session, wiping out earlier gains as traders brace for the largest options expiry of the year. Bitcoin slipped below $87,000 after touching $89,000 earlier, while major altcoins like BNB, Dogecoin, and others fell more than 3 percent in 24 hours.
This move followed weakness in US equities, with the Dow Jones dipping as holiday conditions kept trading volume thin across both markets 🎄📊.
Why this options expiry matters 🧠
Roughly $28 billion in crypto options are set to expire on Deribit, including over $23 billion in Bitcoin options and more than $4 billion in Ethereum options.
Bitcoin options show a bullish bias, with more calls than puts and heavy interest clustered between $100,000 and $116,000. The maximum pain level sits near $96,000.
Ethereum options also lean bullish, with strike concentration around $3,000 to $3,100 and a pain point near $3,000.
Historically, major expiries like this often trigger sharp price swings, especially when liquidity is low like it is now.
Bitcoin technical outlook 📉
Bitcoin’s higher time frame chart is flashing warning signs. A rising wedge and bearish pennant are forming, both patterns that often precede downside moves. The gap between key moving averages is also narrowing, hinting at a potential bearish crossover.
If selling pressure continues, Bitcoin could revisit the $80,000 zone. A deeper drop may open the door toward $75,000.
Why Bitcoin may still be worth buying 🪙✨
Despite near term risk, options data shows long term optimism remains strong. Large traders are positioning for much higher prices over time, not lower. If volatility around expiry triggers a dip, it could present a strategic accumulation opportunity for investors who believe in Bitcoin’s long term role as digital gold.
In short, expect volatility first 😬 but for patient buyers, fear driven pullbacks can offer value 🚀
