ApeWatcher News
  • Home
  • Advertise
  • Headlines
  • Crypto
    • News
    • Bitcoin
    • Ethereum
    • Altcoin
    • View All
  • DeFi
  • NFT
  • Metaverse
  • Guides
  • Rates
  • Videos
  • Listing Platform
  • BSC
  • ETH
  • Listing Platform
  • BSC
  • ETH
What's Hot

El Salvador’s Volcano Energy Secures $1B in Commitments for 241 MW Bitcoin Mine

June 6, 2023

The Lightning Network Doesn’t Fix Everything Wrong With Bitcoin

June 6, 2023

61 cryptocurrencies are now seen as securities by the SEC

June 6, 2023
Twitter Telegram
  • Listing Platform
  • Home
  • BSC
  • ETH
Advertise
Twitter Telegram
ApeWatcher News
  • Headlines
  • Crypto
    1. News
    2. Bitcoin
    3. Ethereum
    4. Altcoin
    5. View All

    El Salvador’s Volcano Energy Secures $1B in Commitments for 241 MW Bitcoin Mine

    June 6, 2023

    The Lightning Network Doesn’t Fix Everything Wrong With Bitcoin

    June 6, 2023

    61 cryptocurrencies are now seen as securities by the SEC

    June 6, 2023

    US CFTC Chair Behnam, Coinbase Chief Legal Among Others To Testify at House Hearing

    June 6, 2023

    Maybe Bitcoin didn’t bottom? SEC lawsuit against Binance shakes BTC bulls’ confidence

    June 5, 2023

    Bitcoin and Crypto To Rise Again As Fed Poised To Resume Money Printing: InvestAnswers

    June 5, 2023

    Bitcoin price will get ‘another test’ of 200-week trend line — analyst

    June 5, 2023

    Willy Woo Says Bitcoin (BTC) Could Be Ready To Rip in June if Signal Plays Out – Here’s His Outlook

    June 5, 2023

    Here’s How Retail FOMO Could Come Flooding Back to Bitcoin, According to Crypto Strategist

    June 5, 2023

    Ethereum gas fees cool down after May memecoin frenzy

    June 5, 2023

    Google searches for ‘crypto’ fall to 2020 levels as BTC sentiment neutral

    June 5, 2023

    US debt ceiling, declining trust in banks send ETH staking to record highs

    June 2, 2023

    Popular Analyst Says Litecoin on the Edge of Breaking Out, Updates Outlook on Ethereum – Here Are His Targets

    June 6, 2023

    Ethereum Rival Takes Hit As Institutional Investors Sell-Off Crypto Holdings: CoinShares

    June 5, 2023

    About Half of Crypto Hacks and Exploits in May Targeted BNB Chain, According to DappRadar

    June 5, 2023

    Bitcoin price chart flashes a bullish sign that could lead to breakouts in ADA, QNT, RNDR and RPL

    June 4, 2023

    El Salvador’s Volcano Energy Secures $1B in Commitments for 241 MW Bitcoin Mine

    June 6, 2023

    The Lightning Network Doesn’t Fix Everything Wrong With Bitcoin

    June 6, 2023

    61 cryptocurrencies are now seen as securities by the SEC

    June 6, 2023

    US CFTC Chair Behnam, Coinbase Chief Legal Among Others To Testify at House Hearing

    June 6, 2023
  • DeFi
  • NFT
  • Metaverse
  • Guides
  • Rates
  • Videos

    Crypto News: Ethereum Worries, Atomic Wallet Hack, INJ, LDO, & MORE!!

    June 5, 2023

    BlackRock CEO Larry Fink is a SECRET POLYGON CRYPTO WHALE! 🐳

    June 4, 2023

    BULLISH on Optimism? (Price Prediction Department)

    June 4, 2023

    Explain BITCOIN to Complete Beginners: Ultimate Guide!!

    June 4, 2023

    4 Crypto Projects Coinbase Ventures is BUYING NOW!

    June 4, 2023
  • jeet-detector-botJDB(JDB)
    $0.00-0.61% 24H
    JDB
    24H : -0.61%
    Volume : $0.00
    Marketcap : $0.00
  • bitcoinBitcoin(BTC)
    $0.00-1.46% 24H
    BITCOIN
    24H : -1.46%
    Volume : $0.00
    Marketcap : $0.00
  • ethereumEthereum(ETH)
    $0.00-1.03% 24H
    ETHEREUM
    24H : -1.03%
    Volume : $0.00
    Marketcap : $0.00
  • usdex-stablecoinUSDEX(USDEX)
    $0.00-0.47% 24H
    USDEX
    24H : -0.47%
    Volume : $0.00
    Marketcap : $0.00
  • tetherTether(USDT)
    $0.00-0.15% 24H
    TETHER
    24H : -0.15%
    Volume : $0.00
    Marketcap : $0.00
  • binancecoinBNB(BNB)
    $0.00-1.30% 24H
    BNB
    24H : -1.30%
    Volume : $0.00
    Marketcap : $0.00
  • usd-coinUSD Coin(USDC)
    $0.00-0.12% 24H
    USD COIN
    24H : -0.12%
    Volume : $0.00
    Marketcap : $0.00
  • rippleXRP(XRP)
    $0.00-3.25% 24H
    XRP
    24H : -3.25%
    Volume : $0.00
    Marketcap : $0.00
  • cardanoCardano(ADA)
    $0.00-1.87% 24H
    CARDANO
    24H : -1.87%
    Volume : $0.00
    Marketcap : $0.00
  • staked-etherLido Staked Ether(STETH)
    $0.00-0.98% 24H
    LIDO STAKED ETHER
    24H : -0.98%
    Volume : $0.00
    Marketcap : $0.00
  • jeet-detector-botJDB(JDB)
    $0.00-0.61% 24H
    JDB
    24H : -0.61%
    Volume : $0.00
    Marketcap : $0.00
  • bitcoinBitcoin(BTC)
    $0.00-1.46% 24H
    BITCOIN
    24H : -1.46%
    Volume : $0.00
    Marketcap : $0.00
  • ethereumEthereum(ETH)
    $0.00-1.03% 24H
    ETHEREUM
    24H : -1.03%
    Volume : $0.00
    Marketcap : $0.00
  • usdex-stablecoinUSDEX(USDEX)
    $0.00-0.47% 24H
    USDEX
    24H : -0.47%
    Volume : $0.00
    Marketcap : $0.00
  • tetherTether(USDT)
    $0.00-0.15% 24H
    TETHER
    24H : -0.15%
    Volume : $0.00
    Marketcap : $0.00
  • binancecoinBNB(BNB)
    $0.00-1.30% 24H
    BNB
    24H : -1.30%
    Volume : $0.00
    Marketcap : $0.00
  • usd-coinUSD Coin(USDC)
    $0.00-0.12% 24H
    USD COIN
    24H : -0.12%
    Volume : $0.00
    Marketcap : $0.00
  • rippleXRP(XRP)
    $0.00-3.25% 24H
    XRP
    24H : -3.25%
    Volume : $0.00
    Marketcap : $0.00
  • cardanoCardano(ADA)
    $0.00-1.87% 24H
    CARDANO
    24H : -1.87%
    Volume : $0.00
    Marketcap : $0.00
  • staked-etherLido Staked Ether(STETH)
    $0.00-0.98% 24H
    LIDO STAKED ETHER
    24H : -0.98%
    Volume : $0.00
    Marketcap : $0.00
ApeWatcher News
Home » Bulls or bears? Both have a fair chance in Friday’s Bitcoin options expiry
Bitcoin

Bulls or bears? Both have a fair chance in Friday’s Bitcoin options expiry

Coin TelegraphBy Coin TelegraphJuly 21, 20221 ViewsNo Comments
Share
Facebook Twitter LinkedIn Pinterest Email

Bitcoin (BTC) briefly broke above $24,000 on July 20, but the excitement lasted less than two hours after the resistance level proved more challenging than expected. A positive is that the $24,280 high represents a 28.5% increase from the July 13 swing low at $18,900.

According to Yahoo Finance, on July 19, the Bank of America published its latest fund managers survey, and the headline was “I’m so bearish, I’m bullish.” The report cited investors’ pessimism, expectations of weak corporate earnings and equity allocations being at the lowest level since September 2008.

The 4.6% advance on the tech-heavy Nasdaq Composite Index between July 18 and 20 also provided the necessary hope for bulls to profit from the upcoming July 22 weekly options expiry.

Global macroeconomic tensions eased on July 20 after Russian President Vladimir Putin confirmed plans to reestablish the Nord Stream gas pipeline flow after the current maintenance period. However, in the course of the last few months, data shows that Germany has reduced its reliance on Russian gas from 55% to 35% of its demand.

Bears placed their bets at $21,000 or lower

The open interest for the July 22 options expiry is $540 million, but the actual figure will be lower since bears have been caught by surprise. These traders did not expect a 23% rally from July 13 to Ju20 because their bets targeted $22,000 and lower.

Bitcoin options aggregate open interest for July 22. Source: CoinGlass

The 1.09 call-to-put ratio shows the balance between the $280 million call (buy) open interest and the $260 million put (sell) options. Currently, Bitcoin stands near $23,500, meaning most bearish bets will likely become worthless.

If Bitcoin’s price remains above $22,000 at 8:00 am UTC on July 22, only $30 million worth of these put (sell) options will be available. This difference happens because the right to sell Bitcoin at $22,000 is useless if BTC trades above that level on expiry.

Bears aim for $24,000 to secure a $235 million profit

Below are the four most likely scenarios based on the current price action. The number of options contracts available on July 22 for call (bull) and put (bear) instruments varies, depending on the expiry price. The imbalance favoring each side constitutes the theoretical profit:

  • Between $20,000 and $21,000: 900 calls vs. 3,000 puts. The net result favors the put (bear) instruments by $60 million.
  • Between $21,000 and $22,000: 2,400 calls vs. 3,000 puts. The net result is balanced between bulls and bears.
  • Between $22,000 and $24,000: 6,600 calls vs. 500 puts. The net result favors the call (bull) instruments by $140 million.
  • Between $24,000 and $26,000: 9,400 calls vs. 0 puts. Bulls take total control, profiting $235 million.

This crude estimate considers the put options used in bearish bets and the call options exclusively in neutral-to-bullish trades. Even so, this oversimplification disregards more complex investment strategies.

For example, a trader could have sold a put option, effectively gaining positive exposure to Bitcoin above a specific price, but unfortunately, there’s no easy way to estimate this effect.

Related: Bitcoin may hit $120K in 2023, says trader as BTC price gains 25% in a week

Bears have until Friday to turn things around

Bitcoin bears need to pressure the price below $22,000 on July 22 to avoid a $140 million loss. On the other hand, the bulls’ best-case scenario requires a slight push above $24,000 to maximize their gains.

Bitcoin bears just had $222 million leverage long positions liquidated from July 17 to 20, so they should have less margin required to drive the price higher. In other words, bulls have a head start to sustain BTC above $22,000 ahead of the July 22 options expiry.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.



Read the full article here

Follow us on Google News to get the latest Updates

 
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Maybe Bitcoin didn’t bottom? SEC lawsuit against Binance shakes BTC bulls’ confidence

June 5, 2023

Bitcoin and Crypto To Rise Again As Fed Poised To Resume Money Printing: InvestAnswers

June 5, 2023

Bitcoin price will get ‘another test’ of 200-week trend line — analyst

June 5, 2023

Willy Woo Says Bitcoin (BTC) Could Be Ready To Rip in June if Signal Plays Out – Here’s His Outlook

June 5, 2023

‘$31K was not the end’ — 5 things to know in Bitcoin this week

June 5, 2023

Bitcoin Ordinals rolls out upgrade to rectify ‘Cursed Inscriptions’ issue

June 5, 2023
Add A Comment

Leave A Reply Cancel Reply

Top Articles

El Salvador’s Volcano Energy Secures $1B in Commitments for 241 MW Bitcoin Mine

June 6, 2023

The Lightning Network Doesn’t Fix Everything Wrong With Bitcoin

June 6, 2023

61 cryptocurrencies are now seen as securities by the SEC

June 6, 2023
ApeWatcher News
Twitter Telegram
  • Privacy Policy
  • Sources
  • Terms and Conditions
  • Contact
  • Advertise
© 2023 Ape Watcher News

Type above and press Enter to search. Press Esc to cancel.