This Friday's weekly Bitcoin (BTC) options expiry currently holds $330 million in open interest. Considering the contempo struggle to regain the $32,000 support level, this event is an important exam of bulls' willingness to display reversion signs.

On Wednesday, Alameda Research announced that it had made Bitcoin purchases below $30,000, and Sam Trabucco, the business firm'due south quantitative trader, mentioned that the narrative for BTC could turn bullish because of the ongoing fear, doubtfulness and doubt (FUD) caused by the China BTC mining ban, Grayscale GBTC unlock and recovery in stock markets.

BTC/USD price at Coinbase. Source: TradingView

The chart above shows that the electric current downtrend aqueduct, initiated three weeks agone, might exist invalidated if the price breaks the $32,200 resistance. The movement seems to have been sparked by Elon Musk's statement that his firm SpaceX also holds Bitcoin.

During the Wednesday see-upward with Cathie Forest and Jack Dorsey, Musk said that despite the rumors, he completely opposes contempo speculations that Tesla has been selling some of its Bitcoin position.

It is worth noting that the rumors had some backing simply because Musk gave conflicting signals on social networks. Moreover, Tesla had sold ten% of its Bitcoin holdings in the previous calendar month.

The $32,000 support is crucial for bulls

Friday's options expiry might be the first strength test of this contempo bounce. If bulls want to set $32,000 as a back up level, there's no better style than causing the most harm possible to the neutral-to-bearish put (sell) options.

Bitcoin aggregate options for July 23. Source: Bybt

The first betoken that bears have been trying to dominate is the put-to-phone call ratio. The 0.81 reading reflects a smaller corporeality of neutral-to-bullish call (purchase) options for Friday, July 23's, expiry.

Withal, bears might accept set themselves a trap because 96% of the put options used $32,000 or lower strike prices. If Bitcoin manages to stay in a higher place that level at 8:00 am UTC on Friday, just $8 million in put options will take part in the decease.

Related: Bitcoin price hits $32K simply derivatives metrics still testify signs of weakness

On the other hand, in that location is $29 million worth of phone call options upwardly to the $32,000 strike price. This $21-million difference favors bulls. Albeit small, information technology is completely contrary from an expiry below $32,000.

If $32,000 fails to hold, bears will have a $9-one thousand thousand lead because just ix% of the call options take been placed at $31,000 or lower.

Neither effect is of extreme significance, merely the profits could exist used for the larger upcoming monthly options expiry on July 30. This is the chief reason why bulls need to agree their footing to keep the current momentum.

The views and opinions expressed here are solely those of the writer and do not necessarily reflect the views of Cointelegraph. Every investment and trading motility involves risk. You lot should conduct your own research when making a decision.