Bitcoin (BTC) Options Traders Maintain Caution Ahead of Friday's Expiry, BTC Price Slips Under $56,000

As the Bitcoin options traders gear for Friday’s expiry, the BTC traders maintain a cautious stand ahead of the US jobs data release.

Bitcoin options traders are treading cautiously as a batch of short-term U.S. dollar-denominated options is set to expire on Friday, while BTC bears are piling on the selling pressure.

At press time, Bitcoin’s price is changing hands at a loss of over 2% on the day at a price of $55,880. The world’s leading cryptocurrency slipped below the key level of $56,000 as traders remain cautious ahead of the U.S. jobs data release.

Bitcoin options traders remain cautious

Nearly 14,000 Bitcoin options are set to expire today, according to data from Deribit exchange. The total notional value of the expiring options is pegged at $760 million.

The latest Bitcoin options expiration data shows a put-call ratio of 0.81, with a max pain point of $59,000.

While the put-call ratio is below 1, the total open interest in BTC options has declined this week. The open interest dropped to $18.35 billion from over $20 billion earlier.

The options data reflects the weakness in the broader market. Furthermore, the implied volatility for Bitcoin options is also rising, suggesting a bearish sentiment for BTC and the wider crypto market.

Historically, September has been a bearish month for Bitcoin and the broader crypto market.

In light of this, BTC bears are likely to have the upper hand, with top market analysts like Peter Brandt predicting a Bitcoin price crash to $46,000.

The view is also supported by trends in the Bitcoin options market, where investors are seen hedging against the volatility risks tied to the upcoming U.S. Non-Farm Payroll report on Friday, Sept. 6, as well as the Fed rate cut scheduled later this month.

Bitcoin price crash likely amid strong bear action

With the Bitcoin price already slipping below $56,000 levels, some of the top market analysts are predicting the BTC price to correct another 12-15% from here onwards.

BitMEX CEO Arthur Hayes also joined the BTC bear camp expecting sub $50K level by this weekend.

$BTC is heavy, I’m gunning for sub $50k this weekend. I took a cheeky short. Pray for my soul, for I am a degen.

On the technical chart, the Bitcoin price continues to form lower highs and lower lows while showing a possible crash to $49,000 levels.

On the other hand, the Bitcoin ETF outflows have also surged, showing the lack of institutional participation currently in the market.

Crypto analyst Rekt Capital pointed out that Bitcoin flipped the key support level of $58,286 into a resistance, breaking down from the below channel pattern.

If Bitcoin fails to close above this resistance in this week’s closing it would confirm a bearish action moving ahead signaling growing concern as the market awaits further direction.

#BTC As things stand, Bitcoin has turned both the blue Higher Low dating to July and the black Channel Bottom into new resistance

Bitcoin needs to rebound soon to shake-off this potential breakdown confirmation before the new Weekly Candle Close$BTC #Crypto #Bitcoin https://t.co/8TDyBO9eR1 pic.twitter.com/fgih0WYBbD

Lastly, the Bitcoin whale activity has also been discouraging recently reduced confidence in the asset class in the near term.

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