Options Expiry on September 25 Could Unlock Bitcoin's Next Move
Bitcoin's price has been stuck between $85,000 and $88,000 due to heavy options positioning, according to DeFi strategist Penguin X. The current level of $85,000 holds the most money in the options market, making it a crucial point for Bitcoin's price action.
Every 1% drop toward $85,000 triggers roughly $142 million in buying, equivalent to about 1,650 Bitcoin, which acts as a cushion holding the price up. However, another $58 million is positioned to work against the price if it actually falls below $85,000, turning that same level from a floor into an accelerant for further downside.
On the upside, there are two resistance walls stacked up at $88,000 and $90,000. The first wall has $103 million in seller positioning, while the second one grows to $123 million. Beyond that, the next major seller doesn't show up until $95,000, meaning a break above $90,000 could open a relatively clear path higher.
The current situation is set to change on Friday, September 25, when major options contracts expire. The biggest concentrations of these contracts sit at exactly $85,000 and $90,000. Once the expiry hits, the wall currently holding price near $85,000 disappears, removing the anchor that's been keeping Bitcoin range-bound.