Bitcoin’s price momentum has stalled as traders closely watch the upcoming monthly options expiry, a massive $14 billion event scheduled for this Friday. After failing to maintain the $89,200 level reached earlier in the week, Bitcoin’s price dropped on Tuesday, settling below $88,000 and increasing the tension ahead of the settlement.

The current setup appears to favor neutral-to-bearish strategies. A significant portion of the call (buy) options have strike prices above $91,000, putting pressure on bulls to push the price higher. If Bitcoin fails to rally past these levels by Friday, these bullish bets will expire worthless.

Despite the immediate headwinds, some traders are maintaining a long-term positive outlook. Data shows a recent increase in year-end call option positions, with traders targeting the $100,000 to $112,000 range. This suggests that while short-term weakness is a concern, optimism for a significant price increase persists.

The $89,000 Pivot Point

Analysis of the open interest reveals that the $89,000 mark is a critical pivot for the November expiry. An expiry price below this level would heavily favor put (sell) instruments. For instance, a settlement between $85,000 and $87,000 would result in a $1.9 billion net outcome for bears. If the price settles between $87,001 and $88,000, the advantage for put options shrinks to $800 million.

Conversely, a push above $89,000 would shift the balance significantly. A settlement just above this level, in the $89,001 to $90,000 range, would give call (buy) instruments a $600 million advantage. An even stronger rally into the $90,001 to $92,000 zone would extend the bulls’ net gain to a substantial $3.8 billion.

Ultimately, the outcome of this major options expiry remains uncertain. While the current price action creates a challenge for bulls, investor sentiment is still heavily influenced by macroeconomic conditions and the potential for future stimulus measures from global central banks.

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