Significant Bitcoin and Ethereum Options Expiry Occurs as Open Interest Approaches Max Pain Levels

A major expiry event for Bitcoin and Ethereum options is taking place, following a significant washout of leverage in the market. With open interest clustering around the maximum pain point, both cryptocurrencies are currently trading just below crucial resistance levels.

Key Takeaways

Approximately 147,000 Bitcoin options contracts will expire on Friday, Nov. 28, which is notably larger than usual.
The Bitcoin options' put/call ratio stands at 0.58, suggesting a preference for long contracts over short ones.
Around 573,000 Ethereum options contracts are also expiring, with a put/call ratio of 0.50.
The cryptocurrency market has been experiencing a stabilization in open interest after a period of volatility.
Bitcoin and Ethereum are currently facing resistance levels that may impact future trading activity.

Bitcoin and Ethereum options expiry chart near max pain levels

Understanding the Current Market Dynamics

As the expiry of significant Bitcoin and Ethereum options approaches, this event comes on the heels of a notable washout of leverage within the market. Data reveals that about 147,000 Bitcoin options contracts are set to expire on Friday, November 28. This figure represents an unusually large expiry event, coinciding with the end-of-month period.

Analyzing the Bitcoin options contracts, we can see that they have a put/call ratio of 0.58, suggesting there are more long positions than short. A significant concentration of open interest is noted on the Deribit exchange, clustered around levels that reflect maximum pain for traders, with additional notable open interest evident at lower strike prices.

Recent economic reports highlighted that U.S. Producer Price Index inflation data exceeded market expectations. Additionally, CryptoQuant informed that the market experienced its most considerable decline in open interest during this cycle, labeling the situation as a significant washout of leverage rather than an early signaling of a bear market.

Market Positioning for Bitcoin and Ethereum

“Positioning seems to have stabilized after recent fluctuations, with open interest gathering around crucial levels, despite ongoing fears,” noted Deribit in a recent report. The exchange also highlighted that heightened interest in call options could indicate an improving sentiment in the market, following bouts of volatility.

In addition to Bitcoin options, Friday will also see around 573,000 Ethereum options contracts expire, which carries a put/call ratio of 0.50. The combined nominal value of crypto options expiring on Friday is substantial across both cryptocurrencies.

Deribit stated, “Following the recent deleveraging in the crypto market, positioning has settled into a more neutral stance around critical support and resistance zones.”

Over the last 24 hours, the overall cryptocurrency market capitalization has remained relatively stable. Bitcoin has attempted to break through resistance levels multiple times but has yet to succeed, trading just below that critical threshold. Meanwhile, Ethereum has fallen below an essential resistance level during trading hours in Asia.