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Coinpaprika 2025-02-21 08:46:35

Bitcoin & Ethereum Face Uncertainty as $2B Options Expire, Volatility Looms

A major event is unfolding in the crypto market as $2.04 billion worth of Bitcoin and Ethereum options expire , raising concerns about increased volatility. Bitcoin faces key resistance levels, while Ethereum struggles to maintain its footing, leaving traders uncertain about the short-term direction. Bitcoin and Ethereum options contracts expiring today hold substantial value, with Bitcoin contracts alone reaching over $1.6 billion. Analysts point to a put-to-call ratio below 1 for both cryptocurrencies, suggesting more traders have placed bets on price increases rather than declines. However, the max pain theory suggests that as expiration nears, prices may move toward levels that cause the most options to expire worthless, leading to potential corrections. Bitcoin is hovering near a crucial resistance zone, while support is being closely monitored by traders. If BTC fails to hold its current levels, it could see a rapid drop toward a lower range, as previous support levels have played a critical role in price stability. Analysts warn that despite low volatility appearing to provide some stability, markets rarely remain calm for long. Many traders are keeping an eye on a key price range, watching for signs of a breakout or breakdown. Ethereum, on the other hand, faces a similar challenge. With over 150,000 contracts set to expire, the second-largest cryptocurrency is also at risk of price fluctuations. The put-to-call ratio for ETH is lower than BTC, indicating that a higher number of traders are expecting gains rather than losses. However, just like Bitcoin, Ethereum’s price may adjust as expiration nears, aligning with the strike price that would result in the highest number of expired options. Market sentiment remains cautiously bearish , with traders expressing frustration over low volatility and lack of clear direction. Analysts at Greeks.live pointed out that Bitcoin traders are keeping a close watch on a crucial support zone, as failure to hold above this level could lead to a more significant decline. While some traders expect price stability in the short term, history suggests that crypto markets tend to shift unexpectedly. Bitcoin’s price movement shows a pattern of lower highs and lower lows, suggesting a short-term bearish trend. However, recent attempts to bounce from support levels indicate a possible reversal. If BTC manages to hold above a key demand zone, it could attempt another push toward the next psychological milestone. On the other hand, a failure to hold support could trigger a sharp decline, potentially testing a much lower range. Technical indicators also provide insight into the current market situation. The Relative Strength Index (RSI) remains near a neutral level, signaling neither overbought nor oversold conditions. However, a slight upward movement in RSI suggests that buying pressure may be increasing. Traders are also watching trading volume closely, as a significant concentration of activity near the resistance level indicates strong selling pressure. Meanwhile, a lower volume area near support suggests that if BTC drops below this point, further declines could be accelerated due to the lack of strong buyer interest. As the market reacts to today’s massive options expiry, traders and investors will be watching closely for any signs of major price swings. If Bitcoin and Ethereum manage to maintain support levels, a rebound could be possible. However, if key support zones break, further losses may follow, adding to the uncertainty surrounding today’s high-stakes expiration event.

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