Bearish Pressure Could Worsen for Bitcoin Ahead of $565M Options Expiry

Cryptocurrency enthusiasts must brace for potential bearish pressure in the markets this week. Bitcoin (BTC) options expiring on Friday, May 28, could trigger further losses, given the amount due for settlement.

It is estimated that a total of some $565 million options are set to expire on Friday — a figure that dwarfs this month’s previous expirations on May 21 and May 14.

The influx of long positions was significant in the lead-up the expiries this month, indicating that traders are expecting some sort of a positive outcome. Combined with the typical monthly expiry volatility and the current resistance of $35,000 — this week could be a decisive turning point for Bitcoin’s medium-term price trajectory.

As prices hover around the $35K mark, significant calls and puts are due this week, including $7 million in calls at $28,500, $8 million adjacent to the same figure at $38,000, and $20 million in puts at $32,000. This could mean that a clear outcome could eventually be determined as the week draws to a close.

On the other hand, any sort of bullish will take a considerable amount of buying pressure to actually manifest in a significant uptick in the spot market.

For instance, Bitcoin reclaimed $36K earlier today pushed primarily by the futures and options close — however, strong selling pressure forced prices back below the $34.5K support.

Should the current bearish sentiment deteriorate during the week, investors must pay particular attention to the options expiry as a deterrent from bearish pressure. With that in mind, prices may begin to stabilize if buyers start to take stances above the $35,000 mark.

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