Bitcoin’s recent price increase
Bitcoin’s recent price appreciation has been driven by a decrease in BTC options open interest at specific strike prices, according to an analyst. Gordon Grant, a crypto derivatives trader, suggests that the reduction in open interest at the $40,000 level is encouraging the uptick in Bitcoin’s price. This decrease in open interest means that there is limited supply from hedgers to offset any downward pressure on the price. The expiration of end-of-month options on January 26 resulted in a significant decrease in open interest for short-dated Bitcoin derivatives, particularly options.
Bitcoin open interest focused on $50,000
The largest volume of Bitcoin open interest for upcoming expiry dates is now concentrated on calls with a strike price of $50,000. This indicates a bullish market sentiment among traders, as they anticipate that the price of Bitcoin will rise above $50,000.
Market observers predicted price correction
Contrary to the predictions of some market observers, the Bitcoin price has remained above $42,000 over the past 24 hours. Market analysts and leading crypto experts had anticipated a price correction to around $33,600, but this has not materialized so far. BitMEX Co-Founder Arthur Hayes previously predicted a 30% correction for Bitcoin, which would bring it down to the $33,600 level and establish a new support zone between $30,000 and $35,000.
Hot Take: Bitcoin defies expectations
The recent surge in Bitcoin’s price has defied market expectations of a significant correction. Despite predictions of a decline to around $33,600, Bitcoin has held strong above $42,000. This unexpected resilience suggests that bullish sentiment remains strong among traders and investors. As we continue to see open interest focused on higher strike prices, such as $50,000, it indicates a positive outlook for Bitcoin’s future performance. It will be interesting to see if the price can maintain its upward trajectory and break through key resistance levels in the coming days.
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