Will Bitcoin Break $80K as $24B in Options Expire on Boxing Day?

Bitcoin nears $85K support as $24B in options expire on December 26. Will the price drop to $80K or rebound?

Bitcoin’s price is approaching a crucial support level as $24 billion in options contracts are set to expire on December 26.

As the expiry date draws near, Bitcoin is facing increased volatility. Traders are watching closely to see whether Bitcoin will hold above $80,000 or drop lower due to this event.

Bitcoin Faces Key Support Near $85K Before Options Expiry

Bitcoin has recently dropped toward key support around $85,000, with analysts warning of potential weakness below this level. The price has been trading within a range between $85,000 and $90,000, unable to break through either resistance or support.

This range-bound action suggests that Bitcoin is at a critical point, where any downward pressure could lead to a move toward $80,000.

Analyst Ted highlights that Bitcoin is drifting toward underlying demand zones, which could absorb the sell-side pressure. The $85,000 support level has previously acted as a cushion, causing price rebounds.

However, if Bitcoin fails to hold at $85,000, it may drop to $80,000, completing a Wyckoff accumulation spring, a crucial part of the market cycle.

Despite this potential short-term weakness, this move would not signal a breakdown. Instead, it may mark a phase of consolidation before a possible recovery.

Bitcoin is expected to bounce quickly after reaching $80,000, which would set the stage for future upward movement once the selling pressure subsides.

Options Expiry Adds Short-Term Pressure to Bitcoin’s Price

The expiration of $24 billion in Bitcoin options on December 26 adds an extra layer of complexity to price action. As the expiry date approaches, Bitcoin faces increased volatility, with short-term fluctuations expected.

Analysts believe that these options’ mechanics, particularly the gamma exposure, will impact Bitcoin’s price by forcing dealers to hedge their positions.

Currently, the options market is skewed toward bearish positions, with large put options at $85,000. This creates additional selling pressure, especially as the expiry date draws near.

Once these options expire, this forced buying and selling pressure will dissipate, allowing Bitcoin’s price to respond more naturally to market forces.

The removal of options-related pressure could lead to a more organic market reaction. Bitcoin’s price would then be free to follow the structural signals already present, which may lead to either a significant drop or a strong rally.

Traders are closely monitoring the options expiry for clues on how Bitcoin will behave once the event concludes.

Related Reading: Dormant Bitcoin Whale Moves 400 BTC After 8 Years with $30M Profit

Key Levels to Watch as Bitcoin Approaches Critical Expiry Event

Bitcoin’s price is currently testing important support levels around $85,000, and the $80,000 range is also under scrutiny. If Bitcoin can maintain its position above these levels after the options expiry, it may continue its recovery.

However, a break below $85,000 could lead to further declines, with the $80,000 level acting as the next major support.

The expiration of the $24 billion in options could remove some of the volatility caused by forced hedging. As the market returns to a more natural state, Bitcoin’s price action will likely respond to real buying and selling activity.

This shift could lead to clearer price trends and potentially drive Bitcoin above key resistance levels, such as $90,000.

Ultimately, the price action after the options expiry will be crucial. Bitcoin’s performance around these key levels will help determine whether the current consolidation phase ends with a bullish breakout or a deeper correction.

Traders are watching the $80,000 and $85,000 levels closely as Bitcoin navigates this critical time.

The post Will Bitcoin Break $80K as $24B in Options Expire on Boxing Day? appeared first on Live Bitcoin News.