- This will happen at 18:00 Kyiv time
- A downtrend is expected as the rate has risen by 45% from the “bot”
- So far, the price has decreased by only 2.16%
Today, February 24, at 18:00 Kyiv time, the term for options in BTC in the amount of $ 1.8 billion expires. Against this background, open interest in bitcoin is close to a historical maximum. As a result, the situation may render a huge impact on the change in the price of an asset in the short term.
Note that open interest (OI) is the total number of outstanding derivative contracts. At the time of writing, this figure is 309 thousand.
The level of open interest in bitcoin was higher only once in history – on November 11 last year, on the eve of FTX’s bankruptcy. This and some other signs indicate that the market will go down.
According to journalist Colin Wu, the put/call ratio is 0.66. Deribit analysts give a different value – 0.81. A value above 0.7 often means that traders prefer puts (shorts). And this already speaks of the formation of a bear.
For example, in December last year, about 135,000 contracts were liquidated at a time. At that time, the BTC price fell by only 1%, but the rate had “broken through the bottom” anyway, so the effect was insignificant.
Compared to the “bot”, the rate increased by 45%. In addition, the number of pending contracts is higher this time, so the effect will be much more significant.
At the time of this writing, the “bitcoin” is trading at $23,945. During the day, the rate “dipped” by 2.16%. So far, there are no signs of a significant drop, but everything could change by the close of trading.
Earlier, we reported that the price of BTC fell on the back of news about unemployment in the US. More details at the link.