Summary:
$14.27 billion options expiry on December 27 could impact Bitcoin's price significantly.
Traders may see fluctuations around $95,000 due to profit-taking and hedging.
The $90,000 strike options indicate strong bullish sentiment in the market.
A drop below $90,000 could increase selling pressure, affecting Bitcoin negatively.
Bitcoin recently broke out from a falling wedge pattern, signaling potential recovery.
Bitcoin’s Upcoming $14.27 Billion Options Expiry
As Bitcoin approaches a $14.27 billion options expiry on December 27, traders brace for potential price fluctuations around the $95,000 level due to profit-taking and hedging activities. The previously noted “max pain” price of $85,000 is now less relevant as Bitcoin's current price has surpassed that mark.
Market Dynamics at Play
All eyes are on whether Bitcoin can maintain its rally or consolidate around the $95,000 level. The strong bullish sentiment indicated by the $90,000 strike suggests continued optimism in the broader market.
What Happens If Bitcoin Drops Below $90,000?
The $90,000 call options currently hold the highest open interest and would move “out of the money” if Bitcoin trades below this level, resulting in a loss for those betting on Bitcoin staying above it. Traders might refrain from exercising these options, which could reduce buying pressure from market makers hedging their positions. Conversely, a drop below $90,000 would benefit traders holding put options, creating increased selling pressure and potentially amplifying Bitcoin’s downward momentum.
Bitcoin’s Technical Analysis
Bitcoin has recently staged a breakout from a falling wedge pattern, a bullish formation that often indicates a price recovery. This breakout occurred after the price consolidated between converging trendlines, eventually breaching the upper boundary with strong momentum. 
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