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In the high-stakes world of cryptocurrency, price is just the tip of the iceberg. The real story — the one that predicts where prices are going, not just where they are — is hidden deep within the derivatives market. This week, the options flow on <a href="https://power.trade/" rel="noopener noreferrer nofollow">PowerTrade</a> is screaming one message loud and clear: The Bulls are back, and they are betting big on a year-end rally.
If you are just trading spot or simple perps, you are missing the full picture. Here is your weekly deep dive into the “Smart Money” flow, the key levels to watch, and how you can use capital-efficient options strategies to hedge your portfolio or amplify your gains.
<h3 id="the-macro-view-the-santa-rally-isreal">🌊 The Macro View: The “Santa Rally” is&nbsp;Real</h3>
This week, the dominant narrative isn’t about Fed minutes or regulatory rumors; it’s about expiration positioning.
Our data shows a massive concentration of Open Interest (OI) targeting the December 26, 2025 expiry. This is the “Christmas Expiry,” and it is currently holding over $234 Million in notional value.
What does this mean? Traders are looking past the short-term noise and positioning for a decisive move by the end of the year. The market structure is heavily skewed towards Call Options, specifically in Bitcoin, suggesting that institutions are expecting fireworks before we ring in 2026.
However, it’s not all “up only.” We are seeing sophisticated hedging in Gold tokens ($PAXG) and specific supports on BTC, indicating that while the outlook is bullish, traders are paying for insurance. This is the classic “Wall of Worry” that bull markets love to climb.
<h3 id="bitcoin-btc-the-race-to-110k">🚀 Bitcoin ($BTC): The Race to&nbsp;$110k</h3>
Bitcoin remains the undisputed king of the options market, commanding 94% of yesterday’s trading volume. But where is the money actually going?
<h3 id="the-flow">The Flow</h3>
Sentiment is decisively Bullish. Yesterday alone saw nearly 2x more buying volume in Calls than Puts. We witnessed “Whale” entities stepping in to buy the $94,000 Strike Calls for mid-December, a clear bet on immediate upside momentum.
<h3 id="key-levels-towatch">Key Levels to&nbsp;Watch</h3>
The Open Interest “Heatmap” reveals the psychological battlegrounds for the week:
<ul>
 <li>Resistance ( The Magnet): $110,000.</li>
 <li>There is a massive “Call Wall” at the $110k strike, with over **$80 Million** in Open Interest sitting there. In options theory, large call walls often act as magnets. Market makers who sold these calls may be forced to buy spot BTC to hedge as price approaches, potentially fueling a “gamma squeeze” that accelerates the move upward.</li>
 <li>Support (The Floor): $108,000.</li>
 <li>Interestingly, the nearest major Put support is high — at $108k. This tight range between $108k support and $110k resistance suggests traders expect a breakout above these levels, or they are using $108k puts to lock in profits on entries from lower levels.</li>
</ul>
Strategy Insight: If you are long BTC, the data suggests holding for the $110k test. If you are cautious, consider buying Put Spreads at the $108k level to protect against a sudden rejection, financing the trade by selling further out-of-the-money calls (a strategy known as a “Collar”).
<h3 id="ethereum-eth-the-altcoin-landscape">💎 Ethereum ($ETH) &amp; The Altcoin Landscape</h3>
While Bitcoin grabs the headlines, the “Smart Money” is quietly building positions in Ethereum and select altcoins.
<h3 id="ethereum-eth-the-3-500pivot">Ethereum ($ETH): The $3,500&nbsp;Pivot</h3>
ETH is currently coiled like a spring. The data shows a unique convergence: $3,500 is both the largest Call Strike and the largest Put Strike.
<ul>
 <li>Interpretation: This is a “Straddle” zone. The market is undecided on direction but expects volatility to explode away from $3,500. A move away from this level could be violent.</li>
 <li>Outlook: Watch for a daily close above $3,550 to trigger a run to $4,000.</li>
</ul>
<h3 id="the-contrarian-hedge-gold-paxg">The “Contrarian” Hedge: Gold&nbsp;($PAXG)</h3>
Here is a true Alpha signal. While crypto is pumping, the most bearish sentiment on the platform is found in PAXG (Gold).
<ul>
 <li>The Signal: PAXG has a Put/Call Ratio of 14.6. For every $1 bet on Gold going up, nearly $15 is betting on it going down or hedging long positions.</li>
 <li>Why? This is likely a “Risk-On” signal. Capital is rotating out of defensive assets (Gold) and into high-beta crypto assets. When Gold dumps and Crypto pumps, it confirms a high-conviction liquidity cycle.</li>
</ul>
<h3 id="educational-corner-why-options-and-whynow">🛡️ Educational Corner: Why Options? (And Why&nbsp;Now?)</h3>
You might be asking, “Why complicate things? Why not just buy the token?”
The answer is Capital Efficiency.
In a bull market, capital is your most scarce resource. Tying up $100,000 to buy 1 BTC (hypothetically) is inefficient when you could control that same upside with a fraction of the capital using Options.
<h3 id="the-power-of-leverage-without-liquidation-risk">The Power of Leverage without Liquidation Risk</h3>
When you buy a Call Option, you get unlimited upside exposure (just like holding the coin), but your risk is capped strictly to the premium you paid. Unlike futures, you cannot be liquidated on a long option position if the price wicks down temporarily.
<h3 id="hedging-sleepsoundly">Hedging: Sleep&nbsp;Soundly</h3>
Are you sitting on massive gains from this cycle? You don’t have to sell and trigger a tax event to protect your profit.
<ul>
 <li>The Move: Buy a Put Option.</li>
 <li>The Result: If the market crashes 20%, your Put Option gains value, offsetting the loss in your portfolio. It’s like homeowners insurance for your crypto bags.</li>
</ul>
<h3 id="powertrade-flexibility">PowerTrade Flexibility</h3>
At <a href="https://power.trade/" rel="noopener noreferrer nofollow">PowerTrade</a>, we specialize in Portfolio Margin and capital-efficient structures. This means we calculate your margin requirement based on your total risk, not just individual positions. This frees up collateral, allowing you to run more sophisticated strategies (like Iron Condors or calendars) that generate yield even if the market goes sideways.
<h3 id="the-week-ahead-what-toexpect">📅 The Week Ahead: What to&nbsp;Expect</h3>
Monday — Wednesday: Expect chop and volatility as traders adjust positions for the mid-week expirations. Watch the $94k level on BTC. A clean break here opens the floodgates to the $100k+ psychological barriers.
Thursday (Dec 12): This is a key expiration date highlighted in our data. If BTC is holding above $94k by Thursday morning, expect a “gamma unclenching” that could propel us toward that $110k magnet by the weekend.
The “News” Filter: Ignore the FUD on Twitter. The flows are telling you that institutions are buying. The only news that matters this week is Flow. And the flow is Green.
Ready to trade with the Smart Money? Don’t just watch the charts — trade the levels that matter. Experience the best execution, deepest liquidity, and most capital-efficient options platform in crypto.
👉 <a href="https://power.trade/" rel="noopener noreferrer nofollow">https://power.trade</a>
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Options trading involves risk.

Crypto Options Weekly: The Smart Money is Positioning for a $110k Christmas - Are You?

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