7.9 billion dollars worth of Bitcoin options expire on Friday! The biggest pain point is at $71k, could a short squeeze show be coming?

Bitcoin is set to see $7.9 billion in options settle, with the market focusing on the battle at $62k and $75k. Currently, the bulls are heavily betting on $75k call options.

The cryptocurrency market is approaching a major turning point. This Friday, nearly $7.9 billion worth of Bitcoin options will expire on the Deribit platform. The latest distribution of open interest shows that market funds are densely positioning around the two key strike prices of $62k and $75k, signaling a tug-of-war between bulls and bears.

According to on-chain data analysis firm Glassnode, $75k is the main hub for the bullish camp’s heavy bets on call options. As of now, open contracts at this strike amount to $395 million.

Image source: Glassnode

More concerning is that at the $75k level, the “Gamma Exposure” shows a deep negative value. In financial markets, this indicates that market makers, for hedging purposes, tend to operate under a “buy high, sell low” logic. When the price rises, they must buy more Bitcoin; when the price falls, they need to sell off more. This force will amplify market volatility, making the $75k level an extremely turbulent “eye of the storm,” where approaching this level could trigger even more intense swings.

On the downside, the open interest in put options, representing downside protection, is concentrated at $62k, with a total contract value of about $330 million. This forms the main support zone for Bitcoin’s retracement.

At the intersection of bullish and bearish forces, the “max pain price” for this expiration is at $71k. The “max pain” point is the price at which the maximum number of traders would suffer financial losses at expiration. Historical experience shows that as settlement approaches, the price tends to gravitate toward this “max pain” level.

Currently, Bitcoin is trading above the max pain point of $71k, and the next test will be whether the bulls can hold onto their gains.

Beyond the options market, the undercurrents in the futures market are also worth noting. The funding rate for perpetual contracts remains persistently negative, indicating a buildup of large short positions. If Bitcoin can hold above the $75k level, these short sellers may be forced to buy back Bitcoin to close their positions, further fueling upward momentum and igniting a “short squeeze” rally.

• This article is reprinted with permission from: “BlockBeats”
• Original title: “$7.9 Billion BTC Options Expiring! Market Focuses on ‘2 Key Levels,’ Max Pain at $71k”
• Original author: Block Sister MEL