Key Takeaways
BTC traders were cautious ahead of Friday’s Options expiry and macro data. But QCP Capital maintained a bullish stance in the near-term.
Traders appeared cautious ahead of nearly $12 billion worth of Bitcoin [BTC] Options set to expire on the 29th of August.
In its latest market update, Options trading platform Deribit noted that positioning was “put-heavy” near $110K-$115K, suggesting that players were actively hedging against any extra downside risk.
“BTC expiry points to persistent demand for downside protection, while ETH looks more neutral. Combined with Powell’s Jackson Hole signal, this expiry may help set the market tone for September.”
At press time, the Put/Call ratio stood at 0.88 – below 1, suggesting that despite the short-term caution, the calls (bullish bets) were still somewhat dominant.
Notably, the Max Pain level, where most Options expire worthless and benefit sellers, sat at $116K. In some cases, the level acted as a price magnet.
Will bulls defend $110K?
Below $110K, players hedged against a move to $106K and $108K.
And by the 26th of August, BTC briefly touched $108.6K intraday, confirming traders’ hedges in play.
Interestingly, the $108K was hit a few hours later on the 26th August after a major whale dumped his BTC holdings for Ethereum [ETH]
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Author: Benjamin Njiri
