Bitcoin’s recent price rally to $35,000 earlier this week has made investors bullish and optimistic allowing traders to take more risks. On the other hand, traders are closely watching the developments with the Bitcoin Options expiry later today.

On-chain data provider Santiment reported that there has been a notable surge in future and open positions for Bitcoin, with open interest increasing by $922 million in the past week. However, it’s important to keep an eye on potential FOMO (Fear of Missing Out) in the market, it adds.

BTC Price Retracement on the Cards?

Over the last two days, the Bitcoin price has seen some partial retracement. At press time, BTC is trading 1.81% down at a price of $34,118 with a market cap of $666 billion.

Popular crypto market analyst Ali Martinez noted that Bitcoin seems poised for a retracement before making further upward moves. On the hourly chart, BTC seems to have developed an ascending triangle. As BTC is currently trading below the diagonal line, there’s an increased likelihood of a 5% correction towards the $33,000 level.

Another popular analyst Rekt Capital also stated that when a retracement unfolds in the forthcoming months, it should be viewed as a chance for re-accumulation.

He also added that market cycles are lengthy, marked by both breakout surges and pullbacks. Thus, investors could get an opportunity to add on the dips going ahead.

Bitcoin Options Expiry

After a strong start to the week, Bitcoin traders are closely watching the options data for the expiry later today, October 27. As per the data from Greeks.Live, 87,000 BTC options are set to expire, with a Put Call Ratio of 0.88, a max pain point at $29,000, and a total notional value of $2.98 billion.

BTC took the lead, reaching $36,000 at one point on the 24th, marking a new annual high. This move drove a surge in the full-term implied volatility, nearing its peak for the year. Consequently, the option delivery price this week will be notably distant from the max pain point.

However, it’s important to note that a significant whale has primarily been selling during the latter part of the week. While market sentiment has notably improved, it may not be sufficient to sustain the ongoing bull market. Thus, Bitcoin continues to face a major test ahead of the launch of the Bitcoin ETF.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.