Bitcoin faces crucial test as $4.9T in options near expiry – Here’s why

Market Overview

Bitcoin has stalled near the $60,000 mark after posting gains earlier in the week. While the top cryptocurrency remains up year-to-date, the recent consolidation hints at growing uncertainty among traders. Daily trading volumes have dipped, suggesting many investors are sitting on the sidelines ahead of a pivotal weekly options expiry.

Options Expiry Pressure

Over $4.9 trillion in notional value of Bitcoin options are set to expire this Friday. Such a massive expiry can amplify volatility as market makers adjust hedges. Large open interest clusters on both calls and puts mean that gamma exposure will be significant: a big move in either direction could force derivatives desks to buy or sell spot BTC to remain delta-neutral.

Liquidation Zones and Price Levels

Data shows two critical liquidation zones looming. A break below $57,500 could trigger stop-loss orders and cascade selling, with potential liquidations in the hundreds of millions. On the upside, cap levels around $63,000 are packed with call open interest that could act as a magnet, drawing price higher—or offering a ceiling as shorts defend their positions.

Altcoins Underperform

Meanwhile, altcoins are lagging behind Bitcoin’s muted range. Ethereum has slipped nearly 4% in the past 24 hours, and tokens like Solana and Cardano have shed 5–6% as traders rotate into perceived safe havens. Lower market caps face more acute downside, and many altcoin rallies have faltered as BTC dominance edges higher.

Technical Indicators to Watch

The 14-day RSI for Bitcoin sits around 52, signalling a neutral stance with room for either further gains or deeper retracements. Bollinger Bands are narrowing on the daily chart, often a precursor to a volatility spike. Key moving averages—particularly the 50-day and 200-day—are converging near current levels, reinforcing the importance of this range.

Conclusion

With nearly $5 trillion in options expiring and two major liquidation thresholds in view, Bitcoin faces a crucial test this week. A decisive move outside the $57,500–$63,000 zone could set the tone for the next major trend. Altcoins may continue to underperform until BTC clarity emerges, so traders should exercise caution and monitor open interest shifts closely.