With inflation and the decline of the BCOM index (Bloomberg Commodity Index), traders are finding refuge in safe values. Bitcoin is one of these values, alongside US treasury bonds, cash positions and the famous must-have, gold. As a result, buyers of bitcoin call options are betting on the price rising towards $25,000. Will this pressure be enough to drive up the price of BTC? Let’s analyze all this more closely.
Bitcoin (BTC): a scenario in favor of buyers more likely?
According to the balance of options contracts, there are more call ” that of “whore“. Indeed, the call options amount to $315 million, or the equivalent of 12,610 BTC. This represents $120 million more compared to the put options which amount to $195 million. A bullish scenario is then more likely for bitcoin (BTC), based on just this balance. Why ? Because up bettors far outweigh down bettors. We can therefore expect the price to close above $24,000 this Friday, August 5, for the bulls (buyers) make a total profit of $90 million on bitcoin.
Bitcoin (BTC): bears bet below $22,000
The bitcoin price had to be below $22,000 before the expiration date for the sellers to pocket a profit of $75 million. But a question arises: will the BTC be lowered before this date? There is little chance…
Given the current bitcoin price movement, pressure from bulls (option buyers “call”) andbears(“whore») could end in a draw. That is, the price will close between $22,000 and $24,000 before expiration. However, it should be noted that the price of this crypto is likely to exceed $25,000 in the long term. But what makes the beauty of options contracts but also its limit is its expiration date.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new daily and weekly newsletter service so you don’t miss any of the essential Tremplin.io!
