- $ 3 billion in crypto options expired on May 16, but next week’s positioning was somewhat bullish.
- For June, option traders expected that BTC would collect up to $ 110k $ 125k with a $ 95k as a floor price.
On May 16, at 8:00 AM UTC, $ 3 billion in crypto options went. Bitcoin [BTC] was good for $ 2.6 billion of fictional value, while Ethereum [ETH] Had $ 252 million.
According to data from Deribit, BTC had a maximum pain of $ 100k and the ETH level was $ 2,200. Max Pain is a level that most options fall worthless and sometimes act as a price magnet.
On the positioning front, Deribit stated”
“BTC Schew is neutral, ETH weigh a little heavier than the calls. Price promotion can become interesting.”
Source: Deribit
The positioning was reflected by the well/call ratio. A value above 1 indicates more Putten (bearish bets) than calls (bullish bets), while values under 1 tend to the side of the bulls.
Simply put, ETH had more bearish bets prior to Friday’s decline, while BTC was at 1 – neutral.
Reaction after the Friday Fine Market market
At the time of writing, about 2 hours after the expiry date of 15 May, BTC was appreciated at $ 103.8k, with 2% from the donut point of $ 101k on Thursday.
For ETH it was traded at $ 2.6k, an increase of 6% compared to the low point of Thursday of $ 2.4K.
This showed that Eth was relatively volatile Dan BTC, and the course of $ 3B did not stir up much retracement as was feared earlier.
Looking ahead, Ambergates 25RR (25-Delta Risk Reversal) was positive for the expiry date of the following Friday (May 23) and the end of May (30).
The positive reading of the metric meant that the calls surpassed (more bullish than bearish bets), which reflects a positive market sentiment for the last part of May.
However, there was no strong macro or crypto-centric catalyst to push BTC higher after the trade agreement in the US china had increased to more than $ 100k the last week.
Whether the expectations of the FED rate will stimulate in the future can still be seen. However, the most popular call purchases in the last 24 hours were aimed at $ 110k $ 120k for the end of June.
The $ 107K option was also popular before the May 23 decline. However, the $ 95k for the decline of June appeared as the likely floor price in the early summer.
In general, the positioning showed that option dealers expected a potential BTC of all time (ATH) at the end of May or June with a downward risk head of $ 95k.
Cryptoquant analyst Axel Adler repeated a similar projection, entry That BTC was currently undervalued from the MVRV meter of the STH (short-term holder).
He emphasized that if there is no negative market catalyst, BTC pressure could increase $ 118k in June.
“The current STH MVRV is 1.09. The first significant wave of sales pressure is expected around 1.25 (price target ≈ $ 118k), with a stronger probably at 1.35 (≈ $ 128k)” “” “”
Source: Axel Adler/X