Crypto Options Traders Anticipate Major Upswing in Bitcoin Price to $100K
The recent rebound in Bitcoin has led to increased demand for out-of-the-money call options targeting strikes from $70,000 to $100,000. Analysts suggest that the path of least resistance for Bitcoin price prediction is on the higher side.
Bitcoin’s renewed upswing has traders reconsidering the possibility of the cryptocurrency reaching the $100,000 level this year. Since Federal Reserve Chairman Jerome Powell ruled out additional tightening or rate hikes, Bitcoin has seen a surge of over 12%, reaching $63,470, according to CoinDesk data.
Demand for Out-of-the-Money Calls
The rise in Bitcoin’s price has spurred demand for call options on leading cryptocurrency exchange Deribit and over-the-counter networks. These options target a rally to new highs, possibly surpassing $75,000 and reaching up to $100,000.
QCP Capital reports seeing increased demand for Bitcoin call options at $75,000 and $100,000 strikes, signaling bullish market expectations. A call option grants the right to purchase the underlying asset at a predetermined price on or before a specific date.
Increasing Notional Open Interest
Data from Deribit shows over $688 million in $100,000 strike call options across different maturities. This is the highest notional open interest among all options listed on the exchange. With more than 150,000 call option contracts worth $9.5 billion active on Deribit, it suggests a strong bullish sentiment among traders.
Analysts’ Bullish Predictions
Both fundamental and technical analysts predict a continued upward trend for Bitcoin. Swissblock Insights suggests a weaker dollar could benefit risk assets, including cryptocurrencies. Meanwhile, Elliot wave analysis by Ledn’s chief investment officer, John Glover, forecasts Bitcoin could rise to $92,000.
While the recent rebound in Bitcoin’s price has led to positive sentiment among traders and analysts, it’s important to remember that cryptocurrency markets are highly volatile. Nevertheless, with current trends pointing to a bullish market, a Bitcoin price prediction of $100,000 could become a reality in the near future.
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Bitcoin Price Prediction: FAQ
- What is the current focus of crypto options traders in the Bitcoin market?
- Crypto options traders are currently focusing on out-of-the-money call options targeting Bitcoin strikes from $70,000 to $100,000.
- What is the significance of the recent Bitcoin rebound?
- The recent rebound in Bitcoin’s price has led to increased demand for call options at higher strikes, indicating a bullish sentiment among traders and analysts.
- What level of Bitcoin price prediction are traders anticipating?
- Traders are considering the possibility of Bitcoin reaching $100,000 this year due to the market’s current trajectory and renewed upswing.
- What does a call option represent in the Bitcoin market?
- A call option grants the buyer the right to purchase Bitcoin at a predetermined price on or before a specific date. This indicates a bullish outlook on Bitcoin’s future price. This indicates a bullish outlook on Bitcoin’s future price.
- How is notional open interest significant in understanding market sentiment?
- Notional open interest represents the dollar value locked in active call option contracts. High notional open interest in $100,000 strike options suggests strong bullish expectations for Bitcoin’s future price.
- What are analysts saying about Bitcoin’s future price?
- Both fundamental and technical analysts are bullish on Bitcoin’s future price, with predictions ranging from $92,000 to potentially surpassing $100,000.
- What impact does the dollar’s strength have on Bitcoin?
- A weaker dollar is generally positive for risk assets like Bitcoin. Analysts suggest that unless Federal Reserve officials challenge Jerome Powell’s stance, the dollar’s weaker position may persist.
- What does Elliot wave analysis suggest about Bitcoin’s future trend?
- Elliot wave analysis suggests that after a temporary dip, Bitcoin’s price could rise to $92,000 as part of a larger upward trend.
