Key Points
- Bitcoin’s hold on the $60K range-low is at risk due to the expiration of $6.6 billion options.
- Despite expected volatility, QCP Capital believes Bitcoin will maintain the $60K support.
Bitcoin’s [BTC] hold on the $60K range-low is currently under threat due to the impending expiration of $6.6 billion in options.
This marks the fifth time BTC has revisited this level, having previously retreated to $56K and $58K.
Options Expiry and Market Volatility
About $10 billion of crypto options are set to expire on June 28th, with $6.6 billion being BTC options.
This could lead to increased market volatility and potentially break BTC’s range-low support.
The max pain for BTC options is currently at $57K. This is the level that presents the least financial risk to market makers before the options expiry.
Market makers often drive prices towards the max pain level to minimize losses.
QCP Capital’s Stance
Despite the expected volatility, crypto trading and hedge firm QCP Capital is confident that BTC will defend the $60K support.
The firm points to easing sell pressure from the German government and an increase in inflows on US BTC ETFs as reasons for their optimism.
However, if BTC prices fall further, short-term investors holding BTC at a loss may panic sell, potentially denting this optimistic outlook.
A CryptoQuant analyst also noted that BTC had dropped below the short-term realized price of $62.6K, which could increase sell pressure.
Despite potential market manipulation towards $57K, the data suggests that BTC could reclaim $60K and retest $62.6K.