Bitcoin options worth more than $9.4 billion are set to expire on the Deribit cryptocurrency exchange on March 29. Analysts speculate that Bitcoin’s “max pain” price could be around the $50,000 range. Data shared by Unfolded in a March 27 post reveals that over 134,000 BTC worth of open interest will expire on Deribit at 8 am UTC on Friday, indicating a max pain price of $50,000. The max pain price refers to the strike price with the most open Bitcoin options contracts, at which most option holders would suffer financial losses upon expiration.
According to Ki Young Ju, the founder and CEO of CryptoQuant, Bitcoin could potentially experience a correction to the $51,000 mark if inflows in spot Bitcoin exchange-traded funds (ETFs) slow down. In a March 22 post, Ju highlighted the importance of ETF inflows in determining Bitcoin’s price movement. Last week, spot Bitcoin ETFs saw negative outflows for five consecutive days, but on March 25, they experienced net flows of over $15 million, coinciding with Bitcoin’s highest daily close above $69,000 in the past ten days. On March 26, the ten Bitcoin ETFs had a combined net inflow of $418 million.
Analyst Rekt Capital noted that Bitcoin’s pre-halving price correction aligned with previous historical retracements before the halving event. Rekt Capital suggests that if Bitcoin manages to turn its old all-time high of $69,000 into support, it could potentially break out towards new all-time highs. Bitfinex analysts also believe that last week’s price correction indicates that Bitcoin has either formed a local bottom or is close to doing so.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.