Record Bitcoin Options Expiry Sparks Volatility; BTC Eyes $90.5K–$94K Key Levels
Bitcoin (BTC) volatility surged ahead of a record options expiry, with BTC trading around $88.5K after a spike to about $89.1K on Dec 26. The expiry size was reported at roughly $23.7–$28 billion and is cited as a key driver of short-covering and large intraday swings. On-chain and market data showed a 36% rise in daily BTC volume to about $30 billion, indicating strong participation. Analysts highlighted two phases of the move: an initial short squeeze followed by high-volume breakout buying. Key technical levels to watch: short-term confirmation requires BTC to reclaim and hold above $90,500; broader bullish momentum needs a sustained break above $94,000 to target $100,000. Conversely, a breakdown below $80,000 would shift the outlook bearish. Traders are advised to await clear breakout confirmation given elevated near-term volatility and the potential for sharp price swings as participants reposition around the options expiry.
Neutral
The article describes heightened volatility driven primarily by a very large Bitcoin options expiry ($23.7–$28B) and associated short-covering, followed by genuine high-volume buying. Such expiries typically cause transient, magnitude-variable price swings in either direction as traders delta-hedge, unwind positions and trigger stops. Short-term impact: elevated intraday volatility with quick 5–10% moves possible around the expiry; traders should expect false breakouts and increased bid-ask spreads. Key technical triggers (hold >$90,500 for short-term bullish bias; sustained break >$94,000 for a move toward $100K; breakdown < $80,000 to turn bearish) imply no definitive trend change yet — hence a neutral classification. Historical parallels: past large Deribit expiries have produced sharp intraday reversals (e.g., expiries in 2021–2023) where initial squeezes gave way to reversals once option-induced flows faded. Long-term impact depends on whether price can close and hold above the higher resistance levels; absent that confirmation, the event mainly amplifies short-term risk rather than setting a lasting directional trend.