Attention across the cryptocurrency sphere is firmly fixed on tomorrow’s Bitcoin options expiration, which marks the largest event of its kind ever recorded.
Market analyst Murphy highlighted that nearly $23.6 billion worth of Bitcoin options are set to expire simultaneously, a development expected to trigger heightened short-term price fluctuations for BTC.
Murphy explained that as market makers unwind their hedging strategies during this expiration, the temporary support and resistance levels established by these options may become ineffective. This scenario could lead to swift and pronounced price swings in Bitcoin until traders adjust their positions and a new equilibrium in funding rates emerges.
The report suggested that if Bitcoin’s value dips back toward its previous low zone—specifically between $80,000 and $82,000—it might open up speculative chances for a brief price rebound. Murphy stressed that intense volatility caused by liquidity constraints does not necessarily indicate the onset of a sustained market crash.
Conversely, early signs of “bullish divergence” have started appearing on shorter timeframes. This phenomenon occurs when prices fall faster than capital exits the market, hinting at potential corrections or temporary recoveries amid downward trends.
The indicator known as “Price and Capital Inflow Gradient” measures changes in Bitcoin’s price momentum relative to actual capital movements. Historically, rapid declines paired with slowing capital outflows have often preceded bounce-back rallies.
The analysis pointed out that four distinct bullish divergence signals observed during 2021–2022 and 2024–2025 led to various degrees of recovery or even trend reversals for Bitcoin. Nevertheless, since overall sentiment remains within a phase characterized by recovery from bearish conditions, any upward movement is likely to be limited and short-lived this time around.
This content does not constitute financial advice.