18,000 Bitcoin Options Expiring with Max Pain at $62K Amid Weak Market

Bitcoin and Ethereum are on the verge of witnessing significant options expiries amid weak market conditions.

Specifically, on October 11, approximately 18,000 Bitcoin options are set to expire, with a put-call ratio of 0.91. The max pain point for Bitcoin is $62,000, while the total notional value of the options expiring reaches $1.1 billion.

Simultaneously, Ethereum faces the expiry of 212,000 options, with a put-call ratio of 0.4 and a max pain point of $2,450. The notional value of these Ethereum options is $510 million.

The impending expiry occurs during a period of overall market weakness. Bitcoin is trading close to the crucial $60,000 level, a price that has become increasingly contested. Ethereum is also hovering near its long-term support line of $2,300.

These levels are drawing attention from traders and analysts as the market seeks to find its next direction. With both Bitcoin and Ethereum in a critical phase, the potential for a market shift is becoming more pronounced.

Options Market Sentiment Remains Depressed

The options market reflects the broader sentiment, with the current positioning showing a marked decline. The total open interest in options has fallen to its lowest point since 2023. This downturn is a reflection of the sluggish market conditions that have dominated the first two weeks of the fourth quarter.

Despite the weak sentiment, the options market still presents opportunities for traders. Notably, implied volatility for Bitcoin options expiring on November 8 is at just 50%. This low level of volatility creates an environment conducive to building medium-to-long-term call positions at favorable prices.

Block call trading, in particular, has been more active this week, suggesting that traders are positioning themselves for potential volatility in the near future. As the U.S. election approaches, there is a good chance that market dynamics will shift, presenting fresh opportunities for both long and short-term traders.

Bitcoins Longest Sideways Movement

The current market conditions have also placed Bitcoin on the verge of its longest sideways movement in a halving year. Bitcoin has now gone over 30 weeks without reaching a new all-time high, a rarity in halving cycles.

Typically, by this point in previous halving years, Bitcoin has experienced significant upward momentum. However, in 2024, the cryptocurrency has remained largely stagnant.

This extended period of sideways movement raises questions about whether Bitcoin will follow its historical pattern of strong growth during halving cycles. While past cycles, such as 2020, saw cumulative returns of nearly 4x by this stage, Bitcoins current return index hovers around 1.5x.