Bitcoin Price Hangs on Expiration Day
Bitcoin's price has been stuck between $85,000 and $88,000, unable to break either level.
According to DeFi strategist Penguin X, this is not random but rather the result of heavy options positioning that's boxing in the price.
The analysis shows that $85,000 holds the most money in the options market, with every 1% drop triggering roughly $142 million in buying, equivalent to about 1,650 Bitcoin, acting as a cushion holding the price up.
However, there's a catch: another $58 million is positioned to work against the price if it falls below $85,000, turning that same level from a floor into an accelerant for further downside.
Above the current price, two resistance walls are stacked up at $88,000 and $90,000, with $103 million and $123 million in seller positioning respectively.
The support on the downside thins out quickly, dropping to just $57 million at $84,000 and $37 million at $83,000, before a larger gap emerges below $80,000.
This situation changes on Friday, September 25, when major options contracts expire, with the biggest concentrations sitting at exactly $85,000 and $90,000.
Once that expiry hits, the wall currently holding price near $85,000 disappears, removing the anchor that's been keeping Bitcoin range-bound.