Bitcoin’s recent surge above $52,000 has sparked a frenzy among traders, with many setting their sights on even higher price targets. One notable trend is the increased interest in call options for Bitcoin at “ambitious” strike prices, particularly above $60,000. This surge in call option buying indicates a strong bullish sentiment among investors, with some even betting on Bitcoin reaching $80,000.
QCP Capital, a renowned crypto asset trading firm, highlighted the concentrated buying activity in these high-strike call options with various expiry dates. According to their analysis, there has been a significant uptick in the purchase of Bitcoin call options with strike prices above $60,000, spanning from April to December expiries. This suggests a long-term bullish sentiment among investors.
Deribit, the leading crypto derivatives exchange, corroborates this trend, reporting a substantial concentration of open call options at $65,000 and higher. The December expiry call option cluster even targets a $100,000 strike price, displaying some traders’ ultra-bullish expectations for Bitcoin’s year-end valuation.
The end of March sees a significant volume of Bitcoin options calls at a $60,000 strike, revealing the immediacy of some traders’ bullish outlooks. With over 1,273 contracts set for expiry on March 29, the notional value of these bets exceeds $67 million, indicating the substantial capital being placed on these optimistic market predictions.
This options trading activity aligns with bullish Bitcoin price forecasts, such as the identification of a “Cup and Handle” pattern on the Bitcoin price chart, suggesting a potential rally to $75,000. Additionally, QCP Capital analysts foresee Bitcoin reaching new all-time highs before the end of March 2024.
This collective optimism is also reflected in the Ethereum market, where there is a notable accumulation of call options around the $4,000 strike price for mid-year expiries, indicating a broader positive sentiment across major cryptocurrencies.
As Bitcoin continues to climb, crossing the $52,000 threshold with a nearly 20% increase in the past week, the market’s bullish sentiment is palpable. However, it’s important to conduct thorough research and understand the risks before making any investment decisions in the volatile cryptocurrency market.