The Options Market Remains Positive Despite Bitcoin’s Struggles
The mood in the options market remains positive even as the cryptocurrency struggles to build upside momentum on the back of a bullish U.S. inflation report. Traders are constantly reading between the lines to gauge what’s coming next, and when a rising market fails to respond to positive news, it’s usually seen as a sign of a trend reversal. However, Bitcoin’s options market shows that traders remain confident in its price prospects despite the choppy action following the U.S. CPI data. The call-put skews on the dominant crypto options exchange, Deribit, are still positive across all timeframes, signaling a persistent bullish bias.
Key Points:
– The call-put skews on Deribit remain positive, indicating a bullish outlook.
– Bitcoin calls expiring in December were snapped up after the post-CPI price drop.
– The options market turned bullish after BlackRock’s application for a bitcoin ETF.
– Analysts believe the rally will resume once prices exceed $31,000.
– Paradigm suggests that prices could rise to $35,000-$37,000.
Bitcoin’s inability to respond positively to the CPI figure has confused many observers, but some attribute it to a large movement of coins seized from Silk Road. Despite this, analysts are confident that the rally will continue with more demand flowing in once prices surpass $31,000. According to Richard Usher, head of OTC trading at BCB Group, a move above $31,400 and a close above $31,000 are needed to unlock further demand and gains. Paradigm also believes that prices could reach $35,000-$37,000 if the $31,000 resistance is meaningfully broken.
By
By
By
By
By