Bitcoin above 120k as $4.3B options set to expire

Bitcoin climbed back above $120,000 on Friday, but the rally faces a near‑term test as more than $4.3 billion in cryptocurrency options expire, adding potential for forced rebalancing and renewed volatility. Onchain metrics and institutional flows point to easing sell pressure and a possible accumulation phase, but traders say the market is perched at key technical levels that will likely determine whether the move can extend to fresh highs or reverse into a deeper correction.

Data from options platform Deribit show roughly $3.36 billion of Bitcoin contracts are set to expire Friday, with total open interest of 27,962 contracts and a put to call ratio of 1.13, a modestly bearish skew. The so‑called max pain level for these expiries is around $115,000, a price that could act as a magnet for dealers seeking to hedge, analysts said. Ethereum has about $974 million in options expiring the same day, where lower implied volatility has led some traders to rotate capital into Bitcoin.

Multiple onchain indicators signal that selling pressure has moderated during the recent rally. Metrics tracking buy versus sell activity slipped into an "opportunity" zone, and the number of sending...