Bitcoin Hits Yearly Max Pain With $2.2 Billion Options Expiring

Expiring Bitcoin Options. Source: Deribit

According to Greek.live analysts, recent price declines, and external factors, such as the upcoming US elections, have led to a slight uptick in implied volatility (IV). However, they observe that BTCs max pain point is at a yearly high, with very good trading opportunities now available in the market.

“Bitcoin hit $73,500 this week, just $100 away from a new all-time high, but then went into high gear, back below $70,000. Maxpain point reached a new high for the year this week, while Ether instead struggled near a new low for the year, and Maxpain point also fell this week. The main market thread this week is the US election, and now that the BTC ATM IV on 8 November is close to 70%, and BTC is oscillating near new highs, there are very good trading opportunities in all views,” analysts said.

According to BeInCrypto data, Bitcoin is currently trading at $69,268, while Ethereum is at $2,503. This places BTC above its max pain point, while ETH remains below it. The Max Pain theory suggests that options prices tend to converge toward strike prices with the highest concentration of contracts set to expire worthless, known as max pain points.

For Bitcoin, this implies a potential pullback toward its $69,000 max pain point, likely sparking short-term market volatility. While options expirations often cause temporary price swings, markets generally stabilize soon afterward.

With todays high-volume expiration, traders should anticipate similar fluctuations that may shape short-term crypto trends. Price pressure on BTC and ETH will ease after Deribit settles contracts at 08:00 UTC on Friday.

Read more: 9 Best Crypto Options Trading Platforms.

Markets should also brace for volatility due to todays nonfarm payrolls (NFP) on the first Friday of November. This US macro data, coupled with the US elections on Tuesday, could also set the next trend.

“We have NFP tomorrow and the US election next week, so do not force any trades until then. Watch the market, and only take clear A+ setups – anything less is not worth it anyway,” a trader on X wrote.

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