A total of 106,000 bitcoin futures and options (BTC) contracts were entered into today, and this beeps the investor's interest in how the price of BTC reacts, leading to expiration and beyond.

The Bears did not anticipate the recent increase to $ 11,000, especially after two months of side business activity, and a 52% increase in overall open interest in futures in July indicates that sellers are either too confident or using them primarily for hedging and arbitration . . possibilities.

The data above shows that open-interest futures peaked at $ 5.2 billion, down 3% from the highest ever high in mid-February. While this may sound horrible, it is true that less than $ 500 million has been spent today.

Options for Bitcoin were a little more worrying as they increased 32% from the day before to $ 2.1 billion of total open interest. Unlike the futures markets, there is no significant gain from options trading in recent trading days.

The alternatives are the winners who take everything in the market since they are worthless underwater. When it comes to the $ 1.4 billion open interest rate that has not ended today, the big question is to know how the bullish / beard is set up.

Interest rate futures open evenly after the 18% rally
The average leverage on BitMEX is over 20 times, which means that a move of 10% should be enough to eliminate 60% of traders due to insufficient margin to cover the risk.

The chart above shows only $ 115 million on July 27 acquisitions despite a 12% price increase, indicating unusually high margins for these sellers. This is really a bullish sign, as most sellers in future contracts seem to be secured.

Today, the potential for bitcoin options has fallen by $ 690 million, leaving 60% of the remaining $ 1.4 billion for August and September. The most important thing is that you must understand the effect of the buy / sell relationship. This scale provides an excellent measure of professional traders’ confidence.

According to the chart above, the purchase / sale price ratio on July 30 was 63% and expired thereafter. This indicates that the open (bearish) interest was 37% less than the bullish (bullish) option. Original data shows that the index is currently 69%. While it remains in the rising region, open interest in the remaining calendar is less optimistic.

The expiration result can be neutral
The futures markets are naturally more balanced because long positions and trousers always have the same exposure. By observing recent winding-up activities, it can be concluded that most sellers are fully insured. Around $ 500 million has been spent today, which is less than 10% of the total interest.

At this point, it seems that the BTC option markets are favoring bulls, and as we mentioned earlier, the recent increase in Bitcoin (BTC) prices has created a lot of bears.

Investors should pay close attention to the 25% deletion options and contango futures mentioned earlier in the Cointelegraph. Each of these indicators indicates whether upward activity is possible.

Source: CoinTelegraph