The weekly expiration date for Bitcoin (BTC) options this Friday currently includes an open interest of $ 330 million. In light of the recent struggle to regain $ 32,000 support, the event is an important test of the cops’ willingness to show signs of reversal.

On July 21, Alameda Research announced that the company had made Bitcoin purchases under $ 30,000, and Sam Trabucco, the company’s quantitative trader, mentioned that the BTC narrative had broken down due to constant fear, uncertainty, and doubt (FUD ) caused by China could become a trend for BTC Mining Ban, Unlocking and Grayscale GBTC Recovery on the exchange.

The graph above shows that the current downtrend channel, which started three weeks ago, could invalidate if price breaks above the USD 32,200 resistance. The move appears to have been triggered by Elon Musk’s claim that his company SpaceX also holds Bitcoin.

During a meeting with Cathie Wood and Jack Dorsey on July 21, Musk said that despite the rumors, he completely opposes recent speculation that Tesla has sold some of its Bitcoin positions.

Elon Musk clarifies that Tesla did not sell Bitcoin after triggering the sell-off https://t.co/jPxK5jBm3m pic.twitter.com/4uA5xB8OwB

– The New York Post (@nypost) May 17, 2021

It’s worth noting that the rumors have some support just because Musk has been giving conflicting signals on social media. in addition, Tesla previously sold 10% of its Bitcoin holdings in the previous month.

The $ 32,000 support is crucial for the bulls

The options expiration date on Friday could be the first test of strength in this latest rally. If the bulls are looking to place $ 32,000 in support, there is no better way than to inflict as much damage as possible on neutral to bearish sell (sell) options.

The first signal that the bears are trying to dominate is the deal rate. The 0.81 index reflects a smaller number of neutral to bullish call (buy) options for the July 23rd expiration date.

However, the bears may have set a trap as 96% of the put options used the actual price of $ 32,000 or less. If Bitcoin manages to maintain this level on Friday at 8:00 a.m. UTC, only $ 8 million in call options will expire.

Connected: Bitcoin price hits $ 32,000 but derivative indicators are still showing signs of weakness

On the flip side, there are $ 29 million call options with an actual price of $ 32,000. That $ 21 million difference favors the cops. Although small, it is in stark contrast to a durability of less than $ 32,000.

If $ 32,000 doesn’t hold up, the bears have a $ 9 million head start as only 9% of calls are placed at $ 31,000 or below.

None of the results are of extreme importance, but the gains can be used towards larger monthly options that expire on July 30th. This is the main reason the bulls have to hold their ground to maintain current momentum.

The views and opinions expressed here are those of author and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risks. You should do your own research when making a decision.