7.10 The biggest pain point of option delivery! Can Bitcoin reverse the situation?
In the previous two articles, we mentioned that Bitcoin may form a double bottom at this key point of the daily level. From the current situation, if it is a double bottom, the price has broken through the neckline position and can be chased!
Then in yesterday's article, we also mentioned that the bottom presents a triangular convergence pattern, and we analyzed the situation at the daily level and believed that this short-term triangle pattern is likely to break upward, because we are still bullish at the daily level, so the short-term triangle pattern should tend to break upward.
Then there is an important news today, I think we need to pay attention to it, that is, $1.8 billion of Bitcoin and Ethereum options expire and are delivered on Friday this week. Today is Wednesday and there are still two days before delivery. The biggest pain point of Bitcoin is $58,000.
Let me briefly explain this biggest pain point. Generally speaking, we are the buyers of options, and the sellers of options are generally the market makers. We definitely buy call options and put options when we buy options. The biggest pain point is the point where all the people who buy call options and put options lose the most overall. That is to say, before Friday, the price remained at $58,000. This is the favorite point of the market makers who sell options, and the point where they make the most money!
And we say that the market makers who sell options are powerful, and I believe they should find a way to push the price to $58,000, which is their biggest profit point. So, if the price continues to break through in the next two days, the market makers may bring the price down. If the price goes down, the market makers will pull the price up instead.
That is to say, the price may remain volatile in the next two days, but if you regard this point as a box from the daily level, it happens to be a form that after breaking the box, the bottom of the box cannot be tested. It is a very standard decline and retracement to continue to fall. So I currently think that the price needs to break through and return to this box to break this conclusion!
