Bitcoin

<ul>
 <li><em>Leveraged positions taken by traders grew to new heights.</em></li>
 <li><em>Declining put to call ratio could make sentiment bearish against BTC.</em></li>
</ul>
<p><a href="https://ambcrypto.com/search/Bitcoin" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Bitcoin [BTC]</a> remained stagnant around the $42,000 mark for quite some time, leaving many holders and traders in suspense as to whether the prices will continue to grow or not.</p>
<h4><strong>High on leverage</strong></h4>
<p>Significant developments suggest that approximately $7.6 billion in notional value for Bitcoin options is set to expire.</p>
<p>Notional value refers to the total value of a position or contract, representing the nominal or face value without accounting for factors such as market conditions or fluctuations.</p>
<p>Simultaneously, there’s approximately $4 billion in leverage positioned above current price levels, extending up to $45,000.</p>
<p>These factors could create a scenario ripe for increased market volatility. Traders and investors are likely to closely observe these developments, as they have the potential to trigger substantial price movements in either direction.</p>
<p>The expiration of options may lead to heightened trading activity, with market sentiment swinging based on the outcome.</p>
<p>Additionally, the presence of considerable leverage could amplify the impact of market movements, contributing to a dynamic and potentially volatile environment for Bitcoin in the coming days.</p>
<div id="attachment_361145" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/GCeQWf_XwAAHpS7.jpeg" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-361145" decoding="async" class="wp-image-361145 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/GCeQWf_XwAAHpS7.jpeg" alt="" width="1465" height="833" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/GCeQWf_XwAAHpS7.jpeg 1465w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/GCeQWf_XwAAHpS7-300x171.jpeg 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/GCeQWf_XwAAHpS7-1024x582.jpeg 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/GCeQWf_XwAAHpS7-768x437.jpeg 768w" sizes="(max-width: 1465px) 100vw, 1465px"></a>
 <p id="caption-attachment-361145" class="wp-caption-text">Source: Coinglass</p>
</div>
<p>Coming to the put-to-call ratio for BTC, it was seen that it had declined massively over the last few months.</p>
<h4><strong>Bulls vs the bears</strong></h4>
<p>The put-to-call ratio is a financial metric that compares the number of put options (which give the holder the right to sell an asset at a specified price) to the number of call options (which give the holder the right to buy an asset at a specified price).</p>
<p>It is often used as an indicator of market sentiment.</p>
<p>If the put-to-call ratio declines, it means that there is a decrease in the number of put options relative to call options. This shift suggests a more bullish sentiment among options traders.</p>
<p>A lower put-to-call ratio indicates that investors are more optimistic about the future price of Bitcoin, as they are less inclined to purchase put options as insurance against potential price declines.</p>
<p>Traders and analysts often use changes in the put-to-call ratio as a contrarian indicator. A declining ratio may signal excessive bullishness in the market.</p>
<p style="text-align: center;">Read&nbsp;<a href="https://ambcrypto.com/predictions/bitcoin-price-prediction" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Bitcoin’s [BTC] Price Prediction</a>&nbsp;2023-24</p>
<p>This may potentially indicate an overextended or crowded long position. In such cases, some market participants might interpret it as a warning sign of a potential market correction, as overly optimistic sentiment may precede price reversals.</p>
<div id="attachment_361146" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/open-interest-put-call-ratio.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-361146" decoding="async" class="wp-image-361146 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/open-interest-put-call-ratio.png" alt="" width="2401" height="1260" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/open-interest-put-call-ratio.png 2401w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/open-interest-put-call-ratio-300x157.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/open-interest-put-call-ratio-1024x537.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/open-interest-put-call-ratio-768x403.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/open-interest-put-call-ratio-1536x806.png 1536w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/open-interest-put-call-ratio-2048x1075.png 2048w" sizes="(max-width: 2401px) 100vw, 2401px"></a>
 <p id="caption-attachment-361146" class="wp-caption-text">Source: The Block</p>
</div>
<p><span class="body-1 mrg-s mrg--l mrg--r">At press time, BTC was trading at $42,544.09 and its price had fallen by 1.13% in the last 24 hours. The volume at which it was trading had also fallen during this period.</span></p>
<div id="attachment_361151" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-BTC-12.47.16-29-Dec-2023.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-361151" decoding="async" class="wp-image-361151 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-BTC-12.47.16-29-Dec-2023.png" alt="" width="2560" height="867" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-BTC-12.47.16-29-Dec-2023.png 2560w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-BTC-12.47.16-29-Dec-2023-300x102.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-BTC-12.47.16-29-Dec-2023-1024x347.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-BTC-12.47.16-29-Dec-2023-768x260.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-BTC-12.47.16-29-Dec-2023-1536x520.png 1536w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-BTC-12.47.16-29-Dec-2023-2048x693.png 2048w" sizes="(max-width: 2560px) 100vw, 2560px"></a>
 <p id="caption-attachment-361151" class="wp-caption-text">Source: Santiment</p>
</div>
<div class="change txt-m expl-tooltip svelte-1pprwug" aria-label="24h change">
 <div class="row v-center change svelte-ga49od down"></div>
</div>

Bitcoin: What next for BTC prices as traders make these moves

AMBCrypto

Other articles published on Dec 29, 2023

Offer to Customers from Bankrupt Bitcoin Exchange FTX: Let's Pay Back Your Bitcoins at This Price!

BONK Bucks the Trend with a 96% Trading Volume Surge Amidst Market Turmoil

Analyst Sets Bullish Shiba Inu Price Prediction for 2024, New Meme Coin Also Backed to Surge

Bitfinex’s 2024 Crypto Market Projection: $3.2 Trillion Valuation

Bitcoin Options Data at the End of 2023: What Does It Indicate? Current Situation!

Bitcoin SV (BSV) Price Soars 63% In 24 hours, Hits YTD High

Join our free newsletter for daily crypto updates!