Take Advantage Of Massive Bitcoin Options Expiration And Explosive Volatility With PrimeXBT


On June 19, 2020, a “quadruple witching” took place across the stock market. Major turbulence is expected in the days following.

The event signifying the expiration of four types of stock contracts is named after the late-night “witching hour” known for causing madness and hysteria.

Contract expiration in such a large cluster causes an increase in trading volume. This uptick in trading volume can also trigger unexpected volatility, adding to the ominous naming convention.

What happens then, when the largest cryptocurrency by market cap – a market known for unmatchable volatility – sees the largest chunk of Bitcoin options contracts to ever expire all at once?

Massive Bitcoin Options Expiration Expected This Friday

Come June 26, 2020, 60% of all current open interest across the entire cryptocurrency market is set to expire all at once. Open interest, due to how long Bitcoin has traded sideways for, has reached record highs recently.

Open interest spiking, while Bollinger BandWidth and other indicators measuring volatility reach unusual lows for the asset class are a sign that an explosive move is coming.

This explosive move could be triggered by a witching-like expiration in the Bitcoin space.

Data Shows Bitcoin Moves 20% Or More From Consolidation

According to data, over the last two years of bear market, Bitcoin price has consolidated for 5 weeks or more only ten times.

The only time that the asset traded sideways longer than that, was prior to the November 2018 crash that took Bitcoin to its bottom at $3,000.

All other times, lasted less than six weeks. Bitcoin has now traded sideways for five total weeks this time around, so if data remains accurate, it won’t make it another week before a breakout one way or the other.

The same data also shows that Bitcoin price, when it does finally break out from consolidation, pumps in price seven out of the remaining nine times. When it does breakout, it typically results on average a move of 20% or more each time.

A 20% move from current levels, would take Bitcoin price to either $7,500 or $11,250. A fall below would give crypto investors a chance to buy Bitcoin at lower prices for perhaps the last time before a new uptrend begins.

A break above $10,000 would be a signal that the uptrend has already begun, and could cause a wave of FOMO similar to that which was seen in mid-2019 when Bitcoin rose from $3,000 to $14,000.

Take Advantage Of The Breakout In Volatility With Award-Winning PrimeXBT

To take advantage of the explosive move that is expected any day in the cryptocurrency market, traders should consider PrimeXBT, an award-winning Bitcoin margin trading platform.

The advanced trading platform offers both long and short positions, even simultaneously so traders can profit from whichever way the market turns next, and ensure they don’t miss out on the next bout of volatility in crypto.

Built-in charting tools for technical analysis can help traders prepare further by setting a stop-loss order by clicking directly on the chart itself to trade. A take profit order can be set in case Bitcoin moves faster than expected.

PrimeXBT is a respected and reliable Bitcoin-based platform, offering CFDs for crypto, forex, stock indices, commodities, and more. All accounts are denominated in BTC, so any winning trades go right back to building up your base BTC holdings.

Registration takes just 60 seconds. Sign up today.

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