The expiration of over $9.4 billion worth of Bitcoin (BTC) options on the Deribit cryptocurrency exchange is approaching on March 29. Some analysts speculate that Bitcoin’s “max pain” price could be around $50,000.
According to data shared by Unfolded in a March 27 post on X (formerly Twitter), there is over 134,000 BTC worth of open interest set to expire on the Deribit exchange at 8 am UTC on Friday. This suggests a max pain price of $50,000. The max pain price refers to the strike price with the most open Bitcoin options contracts (puts and calls), at which most option holders would experience financial losses upon expiration.
Ki Young Ju, the founder and CEO of CryptoQuant, stated in a March 22 X post that if inflows in spot Bitcoin exchange-traded funds (ETFs) were to slow down, Bitcoin could potentially see a correction to the $51,000 mark. Last week, the spot Bitcoin ETFs experienced five consecutive days of negative outflows. However, on March 25, they saw over $15 million worth of net flows, coinciding with Bitcoin’s highest daily close above $69,000 in the past ten days. On March 26, the ten Bitcoin ETFs saw a combined net inflow of $418 million.
Analyst Rekt Capital noted in a March 25 X post that Bitcoin’s pre-halving price correction aligns with previous historical retraces leading up to the halving. If the old all-time high of $69,000 is flipped into support, Bitcoin price could potentially break out towards new all-time highs, according to Rekt Capital’s March 26 video analysis.
Bitfinex analysts, in a research note shared with Cointelegraph, suggest that last week’s Bitcoin price correction indicates that the price has already formed a local bottom or is close to doing so.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and assess the risks before making any investment or trading decisions.