Bitcoin nears breakout from the $85,000-$90,000 range as options expiry looms

Source: CryptoNewsNet Original Title: Bitcoin nears breakout from the $85,000-$90,000 range as options expiry looms Original Link: Bitcoin has spent virtually all of December locked between $85,000 and $90,000, while U.S. equities rallied and gold hit all-time highs. That’s left bitcoin investors frustrated, and the explanation lies in derivatives mechanics.

Now, those same mechanics indicate that the largest cryptocurrency could be making a break toward the high end of the range. The more likely outcome after expiry is an upside resolution toward the mid $90,000s rather than a sustained break below $85,000.

The key driver has been a heavy concentration of options around current prices. Options are contracts that give traders the right, but not the obligation, to buy or sell bitcoin at a set price. Call option holders benefit if price rises, while put options benefit if price falls.