According to AiCoin, data analyst Murphy noted that approximately $23.6 billion in Bitcoin options will expire on December 25, marking the largest BTC options settlement in history. After market makers unwind related hedging positions, the support and resistance formed by the options structure may temporarily fail, potentially increasing BTC volatility in the short term until market capital structure readjusts. Murphy also pointed out that if BTC drops to around $80,000–$82,000, a short-term rebound opportunity may arise. A bullish divergence signal has appeared at smaller price and capital increment gradients, suggesting a potential correction in the downward trend and a rebound demand. Historical data shows that similar signals have often accompanied rebound trends or reversals, though current market sentiment remains bearish, making a rebound more likely.
Historic $23.6B BTC Options Expiry May Intensify Short-Term Volatility
AiCoinShare
Summary
BTC price faces potential short-term turbulence as $23.6 billion in Bitcoin options set to expire on December 25, the largest BTC options settlement ever recorded. AiCoin analyst Murphy noted that unwinding of hedging positions by market makers could temporarily disrupt key support and resistance levels. BTC dominance may shift during this period as the market adjusts. If BTC price dips to $80,000–$82,000, a rebound could follow. A bullish divergence at lower price and capital gradients suggests downward correction may be nearing a turning point.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.