Bitcoin options with a notional value of $1.47 billion expired on October 16 while worries over possible U.S. military strikes against Iran lingered. Greeks.Live described cautious buyers, and a wider pullback in financial markets weighed on sentiment.
Bitcoin stayed under negative sentiment on October 16 as $1.47 billion in options came up for renewal. The expiry coincided with a wider pullback in financial markets, which held back Bitcoin's recovery.
Options data points to caution
According to Greeks.Live, 18,000 Bitcoin options contracts expired on Friday, representing 4.5% of the total volume of positions. The put call ratio stood at 1, and the maximum pain price was $83,000.
The analytics platform said US stocks pulled back sharply this week on poor macroeconomic data, and digital assets mostly followed. It also flagged a lack of volatility expectation. Implied volatility fell to a level where, the platform said, 35% is a floor with little room for further decline.
Greeks.Live added that elevated volatility has yet to return to major options markets, even after the summer recovery. According to the platform, buyers stayed cautious: "Buyers remain very cautious and are unwilling to pay a premium to take on risk,"
Gamma exposure is now increasingly concentrated around $90,000, according to Greeks.Live, with put options starting to attract gamma at the $80,000 level.
Iran bombing report adds pressure
Geopolitics added another risk for crypto investors. CBS News reported that the White House and Pentagon had plans ready to drop a MOAB bomb on an Iranian military installation if President Donald Trump gave the go-ahead.
The White House did not confirm the reported plans. It said Trump has all options in front of him to stop Iran from getting a nuclear weapon.
On the weekly chart, Bitcoin is taking a step toward recovery from the $60,000 lows to $82,000. The MACD indicator has entered positive territory, and the support zone of $76,000 to $80,000 remains important.
Crypto analyst Michaël van de Poppe said Bitcoin needs to hold its present weekly support level. He added that after a relatively strong bounce upward in the markets, he does not expect much more downward momentum.
Source: CoinGape
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