Cryptocurrency

Buoyant price action has Bitcoin options traders eyeing $30,000

Hull Invest

Bitcoin options traders overwhelmingly revised their expectations to $30,000 by the end of March, according to data analyzed by Glassnode. crypto slate.

The recent price action took on a decidedly bullish tone in the second week of the new year.

Since January 8th, BTC has recorded 7 consecutive green closes, gaining 25% and regaining $20,000 for the first time since FTX collapsed about 9 weeks ago.

As a result, options traders’ sentiment has become more bullish.

Bitcoin Sentiment Becomes Even More Bullish Among Options Traders

Previous research has highlighted a bullish trend among Bitcoin and Ethereum options traders, as evidenced by the prevalence of open interest calls over puts in both cases.

Calls and puts refer to buying and selling options respectively. These derivative instruments give the holder the right, but not the obligation, to buy or sell the underlying asset at a specified price at some point in the future.

Call and put spreads at various given (or strike) prices indicate general market sentiment.

At the time, the preferred range for Bitcoin was between $15,000 and $20,000. This is because the call and put spreads within this spread are relatively even.

However, recent strong price action has made Bitcoin options traders even more bullish.

Strike Price Call at $30,000

The chart below shows updated Bitcoin open interest data following recent price movements. Again, calls are well ahead of puts, and this time he favors the $16,000-$18,000 range.

Nonetheless, the revised open interest data showed that $30,000 had the most call activity, followed by $21,000 calls by the end of the quarter, by a wide margin. The most significant put interest was the $15,000 strike price.

Bitcoin options trike price
Source: Glassnode.com

Macro uncertainty remains, but the predominance of calls on open interest in bitcoin options suggests some distance from broader uncertainty, at least in the short term.

Posted In: Bitcoin, Research

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