Bitcoin rebounded above $84,000 after a report that U.S. and Iranian negotiators are exploring a phased plan to reopen the Strait of Hormuz. The bounce comes just before an $18 billion Bitcoin and Ethereum options expiry, the largest of the year, while long traders have already absorbed heavy liquidations over the past two days.
Bitcoin bounces on reported Hormuz plan
Bitcoin rebounded above $84,000 after tumbling to an intraday low near $83,000, trading around $84,300. A Reuters report cited by CoinGape said U.S. and Iranian negotiators are exploring a phased plan to end the war, including reopening the Strait of Hormuz and ending the U.S. blockade, though neither side has yet agreed to give up leverage first.
The standoff has kept Brent crude above $105, with diesel prices also at new highs, feeding inflation that is running above the Fed's 2% goal. The Fed raised rates last week for the first time since 2023, and the odds of a further October hike have been climbing as the Hormuz talks drag on without a deal.
An $18 billion options expiry looms
A separate volatility trigger sits just ahead: more than $18 billion in Bitcoin and Ethereum options are set to expire on September 25, the largest expiry by value this year. Bitcoin accounts for over $14 billion of that total, with a put/call ratio of 0.76 that points to a bullish skew, while its max pain price sits near $78,000.
The broader sell-off tied to the geopolitical standoff wiped out over $1 trillion in the U.S. market, spilling into crypto. More than $400 million in long positions were liquidated on September 23, but Bitcoin spot ETFs still absorbed over $350 million in inflows that day, and bitcoin held near $85,000, a drop of only 2%.
Traders split on the next move
Separately, $80 million of a $110 million leveraged liquidation wave came from bitcoin long positions, after the price slid from $87,000 to an intraday low of $82,870 before recovering to $84,830. Bitcoin's month-to-date gain still stands at just over 6%, with its market capitalization near $1.69 trillion.
Technical traders point to an inverse head-and-shoulders pattern, with its left shoulder near $61,000 and head near $54,000, that could open a path toward $100,000 if bitcoin breaks above $86,000. Bearish traders counter that bitcoin has twice been rejected near $87,300, and warn a breakdown below $80,000 could send the price toward $73,000 to $74,000, and possibly $62,000, before any recovery above $90,000.
Sources: CoinGape, AMBCrypto, Bitcoin News
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