The Strange Signal Behind Bitcoin’s Latest Pullback

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Bitcoin (BTC) slipped below key options positioning levels on May 29 as traders prepared for one of the largest crypto options expiries in recent weeks. More than $7.6 billion worth of Bitcoin and Ethereum (ETH) options contracts are set to expire on this day, which arrives as BTC trades near $72,900 and broader market sentiment remains surprisingly calm. Despite the pullback, derivatives traders are still largely betting that support will hold rather than positioning for a deeper breakdown.

Bitcoin Breaks Key Options Zone Ahead Of $7.6B Expiry

According to the May 28 post by derivatives analytics firm Greeks.Live, Bitcoin has begun trading below the market’s gamma exposure (GEX) concentration zone near $73,300, a level often associated with options-related support and resistance. 

Ethereum has also slipped below its own key GEX level around $2,000.

The latest market data shows Bitcoin trading near $72,900 after spending most of the previous day between $73,000 and $73,700. Specifically, its current price on May 29 stands at $73,074.75, down 0.2% on the day, dropping 5.8% over the week, and losing 6% across the month.

What stands out is that implied volatility remains subdued despite the decline. Greeks.Live noted that implied volatility across maturities remains below 40%, whereas longer-dated volatility continues to trend lower. Even the recent three-day selloff failed to generate a meaningful rise in near-term volatility expectations.

Around 85,500 Bitcoin options contracts worth approximately $6.3 billion expire today. The put-to-call ratio sits at 0.85, which indicates relatively balanced positioning between bullish and bearish traders. Ethereum adds another 650,000 contracts worth about $1.3 billion, which brings the combined expiry value to around $7.6 billion.

Greeks.Live said today’s monthly expiry could significantly reshape the current options structure. However, the firm added that large investors haven’t materially increased hedging activity or downside protection, which suggests the market still expects support levels to hold.

Altcoins Mixed As Traders Wait For Direction

The wider crypto market remains under pressure, and most major assets have been trading lower over the past 24 hours.

Bitcoin and Ethereum both remain in the red, and XRP, Solana (SOL), Dogecoin (DOGE), Cardano (ADA), Chainlink (LINK), Litecoin (LTC), and Sui (SUI)  have also posted losses. The weakness comes after several days of steady selling that has pushed total crypto market capitalization lower throughout the week.

A few pockets of strength remain. Zcash (ZEC) leads large-cap gainers with a 2.7% advance, and Stellar (XLM), Toncoin (TON), Tron (TRX), Hyperliquid (HYPE), and Monero (XMR) continue to post modest gains despite general market weakness.

For now, traders are watching whether today’s expiry removes enough options-related support to trigger another leg lower. The unusual combination of falling prices and muted volatility suggests the market is still leaning toward stabilization, but the post-expiry reaction could provide a clearer signal about where crypto heads next.