Bitcoin traders watch $ 32,000 ahead of Friday’s $ 330M BTC options expiry

Currently, the expiration of the options for Bitcoin (BTC) this Friday contains open interest rates of $ 330 million. Given the recent struggle to restore the $ 32,000 support level, this event is an important test of the bulls’ willingness to show signs of reversal.

On Wednesday, Alameda Research announced that the company had bought bitcoin for less than $ 30,000, and Sam Trabuco, their quantity trader, mentioned that the expectation of BTC could turn into a bull due to ongoing fear, uncertainty and doubt (FUD). caused by the Chinese ban on the extraction, unlocking and recovery of GBTC in Grayscale on the stock markets.

The chart above shows that the current downtrend channel, initiated three weeks ago, could be nullified if the price breaks the resistance of $ 32,200. The move seems to have been triggered by Elon Musk’s statement that his company SpaceX also owns bitcoin.

During a meeting Wednesday with Katie Wood and Jack Dorsey, Musk said that despite rumors, he completely opposed recent speculation that Tesla was selling part of its position in the digital currency.

The $ 32,000 support is crucial for the bulls

The expiration of options on Friday may be the first test of this recent rebound. If the bulls want to set $ 32,000 as the support level, there is no better way than causing as much damage as possible to the neutral to bearish put options.

The first signal that bears are trying to dominate is the call ratio. The 0.81 reading reflects a smaller amount of neutral to bullish call options (purchase) expiring on Friday, July 23rd.

However, bears may have set a trap because 96% of put options used $ 32,000 or lower strike prices. If Bitcoin manages to stay above that level on Friday, only $ 8 million in put options will participate in the expiration.

On the other hand, there are call options worth $ 29 million up to a strike price of $ 32,000. This $ 21 million difference favors the bulls.

If the $ 32,000 level fails to hold, bears will have a $ 9 million advantage because only 9% of call options are set at $ 31,000 or lower.

Neither result is crucial, but the winnings can be used for the longer upcoming month of options, which expires on July 30. This is the main reason why bulls need to hold their position to maintain their current momentum.