Analyst Predicts New ATH After $2.5 Billion Options Expiry

Bitcoin experienced its largest price drop of the year on Monday, falling 30% amidst a global market downturn. This decline was triggered due to the economic policy changes in Japan, which triggered the market sell-off, leading to significant losses across various assets.

Despite this significant drop, Bitcoin’s recovery sharply and has grabbed the attention of both crypto enthusiasts and analysts. Michael van de Poppe, a well-known analyst, hints at a “V-Shape recovery for BTC,” likening it to past major market disruptions.

Bitcoin Making V-Shape Recovery

As of now, Bitcoin price is trading positively at around $60,427, reflecting a surge of 5.27% with a market cap of $1.19 trillion. Meanwhile, Michael van de Poppe has noted Bitcoin’s impressive bounce back, which he describes as a “V-Shape recovery.” This term refers to the swift and sharp recovery in Bitcoin’s price following a major dip. 

#Bitcoin did provide a V-Shape recovery, through which this correction and crash due to Jump Trading selling crypto assets is comparable to COVID-19 –> A Black Swan.

As long as Bitcoin holds above $57,500, I think we’re in for a new ATH in September/October. pic.twitter.com/9evOPEa3RB

— Michaël van de Poppe (@CryptoMichNL) August 9, 2024

Van de Poppe compares this recovery to past market disruptions, like the COVID-19 pandemic’s “Black Swan” event, suggesting Bitcoin’s resistance and potential for future gains.

Further, Van de Poppe predicts that Bitcoin could hit a new all-time high (ATH) by September or October if it maintains its current position above $57,500. This forecast indicates that Bitcoin’s fundamental strength is still robust, suggesting potential growth opportunities for investors shortly.

$2.5 Billion in Crypto Options Expiry

Meanwhile, on Friday, August 9, approximately 32,000 Bitcoin options contracts, valued at about $1.9 billion, will expire. This expiration is expected to have a limited impact on spot markets compared to the previous week. 

Aug. 9 Options Data32,000 BTC options are about to expire with a Put Call Ratio of 0.71, a Maxpain point of $60,000 and a notional value of $1.9 billion.206,000 ETH options are about to expire with a Put Call Ratio of 0.96, Maxpain point of $2,950 and notional value of $560… pic.twitter.com/soKryrB4Hw

— Greeks.live (@GreeksLive) August 9, 2024

However, the put/call ratio of 0.71 indicates that more call contracts are expiring than puts, with the max pain point set at $60,000.

Ethereum Options Expiry

Alongside Bitcoin, 206,000 Ethereum options, valued at $560 million, are also expiring. These Ethereum options have a put/call ratio of 0.96 and a max pain point of $2,950, which is significantly higher than current spot prices. 

The combined ideal value of these crypto options expires at $2.5 billion, adding to market volatility.