Bitcoin whales brace for a $13B options expiry — position for a crypto pullback
Thesis
Large options expirations act like a magnet for stock and crypto prices, and right now, the biggest traders are positioning for the price of Bitcoin to fall. With the Federal Reserve talking about raising interest rates again next month, borrowing money gets more expensive, pushing investors away from risky bets like crypto. With Bitcoin struggling to stay above $63,000, this sets up a classic short opportunity to bet against the price as it loses its footing.
Strategy approach
Build a mean-reversion/breakdown strategy that enters short on BTCUSDT on the 4-hour (H4) timeframe when the price breaks and closes below the $63,000 support level with volume higher than the 20-period average. Place a stop loss at $65,000 and set a take profit at the next major support level or a 5% drop.