Bitcoin Max Pain Strengthened the $92K–$94K Resistance

Max pain is an important term in the world of options, representing the estimated Bitcoin price at which the majority of contracts expire without generating a profit for buyers.

Option sellers, including large banks and market makers, always try to 'adjust' the asset price as close as possible to this point at the time of contract expiration to maximise their profits.

Why is it important to be aware of and consistently monitor Bitcoin's max pain? Because, in 80% of cases, market makers, who are option sellers, receive their money. Considering that $3.4 billion worth of contracts expired on Friday, it is clear that Bitcoin's growth was doomed, as max pain was at $91K.

Sellers launched an attack from the $92K–$94K resistance zone. Although this level was quite weak and not obviously indicative of a reversal on the chart, the Bitcoin futures funding rate instantly went into negative territory. This indicates that, despite relatively 'normal' trading volumes, there were almost no bulls left in the market. This is why the bears pushed the price so low, causing it to fall below $89.5k instead of $91k.

The only positive news is the technical failure of BTC. Now, the bulls have a chance to boost the price again.