Bitcoin

Bitcoin (BTC) Price Recovery Has Crypto Options Traders Rebounding to $100K

Published

12 months ago

8 May, 2024

Bitcoin (BTC) Price Recovery Has Crypto Options Traders Rebounding to $100K

Bitcoins (BTC) The renewed price recovery has caused options traders to reconsider the possibility of the cryptocurrency reaching the $100,000 level at some point this year.

The leading cryptocurrency by market cap rose more than 12% to $63,470 since Federal Reserve Chairman Jerome Powell discarded Additional tightening or rate hikes as the next policy move last Wednesday, CoinDesk data shows. Friday’s disappointing US nonfarm payrolls (NFP) data validated Powell’s position, accelerating BTC’s rally.

As such, there has been a notable increase in demand for bitcoin call options on major Deribit cryptocurrency exchanges and over-the-counter (OTC) networks. These options specifically target a rally to new highs, potentially surpassing $75,000 and even reaching $100,000.

“We are seeing some follow-through upside in volatility and rates following the recovery from Friday’s reversal and over the weekend. BTC risk reversals were positive (calls are more expensive than puts) and [there has been a] renewed demand for BTC due in September at $75,000 and calls at $100,000,” QCP Capital said in a note on Monday.

A call option gives the right to buy the underlying asset at a predetermined price on or before a specific date. A call buyer is implicitly bullish on the market and a put buyer is bearish.

Institutional OTC cryptocurrency trading network Paradigm made a similar observation on Monday, stating increased demand for out-of-the-money (OTM) calls or those on strikes well above the BTC market rate.

“The options market appeared to anticipate a short-term rally early this morning, with the main BTC and ETH trades on Paradigm consisting of long-sized OTM calls. [expiry] $200,000 call buyer closing his position to buy July 2024 [expiry] US$85,000 strike,” Paradigm said in a Telegram broadcast.

Data from Deribit shows that traders have locked more than $688 million worth of $100,000 strike call options across different expiries. This is the largest amount of notional open interest among all options listed on the exchange.

At the time of writing, more than 150,000 call options contracts worth $9.5 billion are active on Deribit. This is more than twice the amount of open interest in put options, a sign of optimistic market expectations.

Notional open interest refers to the dollar value locked in the number of active or open contracts. On Deribit, an options contract represents one BTC or one Ether (ETH).

Both fundamental and technical analysts are once again united in the idea that the path of least resistance for bitcoin is on the upside.

“Bitcoin continues to be supported by the US election cycle and ongoing deficit spending. This is why we adjusted our ‘line in the sand’ from 68,300 to 62,000 in our May 3 report – the market could trade (tactically) at rally above 62,000,” 10X Research said.

Siwssblock Insights expects the dollar index (DXY) to remain on the defensive unless Powell’s position is challenged. A weaker DXY is generally good for risky assets, including cryptocurrencies. The DXY fell 1.2% to 105.20 since Wednesday’s Federal Reserve meeting.

“The dollar’s weaker position will likely persist as long as economic data continues to support that direction and as long as Federal Reserve officials do not contradict Powell’s position. The labor market is showing signs of easing, but more aggressive voices from the Fed may still push to keep rates higher for longer, which could impact the dollar’s trajectory,” said the latest Swissblock Insights newsletter.

Meanwhile, Elliot wave analysis by John Glover, chief investment officer at Ledn, suggests bitcoin could rise to 92,000.

‘BTC price action continues to track my expected path for Wave 4, as seen in the chart below. While the drop to $56.5K may have completed the correction, I still expect to see a price of $52-55K before Wave 4 concludes. 2/ Once Wave 4 is complete, I expect the momentum from Wave 5 to around $92K occurs,” Glover said in an email to CoinDesk.

Ralph Nelson Elliott introduced Elliot wave theory in 1938 in his book The Wave Principle. The theory assumes that asset price movements can be predicted by observing and identifying a repeating wave pattern.

Trends unfold into five waves, of which 1,3 and 5 are impulse waves, representing the primary trend, while 2 and 4 show temporary pullbacks of previous impulse waves.

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Related Topics:Bitcoin markets Negotiation options

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Bitcoin

What to watch for in the markets

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

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Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

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Bitcoin

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

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Bitcoin

Here’s the next target for BTC before bulls can hold out for $70K

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

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