von Bulletpoints:
– Bitcoin options traders have revised their expectations to $30,000 by the end of March according to Glassnode data.
– Bitcoin has recorded seven consecutive green daily closes, which took it 25% higher and recaptured $20,000.
– Options traders have become more bullish due to the recent bullish tone in the crypto market.
Bitcoin options traders have become more bullish in the crypto market due to recent price action that has taken a decidedly bullish tone. According to Glassnode data analyzed by CryptoSlate, Bitcoin options traders have re-evaluated their expectations for the cryptocurrency and are now eyeing a price of $30,000 by the end of March.
In the second week of the new year, Bitcoin recorded seven consecutive green daily closes, resulting in an increase of 25% and recapturing $20,000 for the first time since the FTX collapse roughly nine weeks ago. This buoyant price action has caused a shift in sentiment among options traders.
Previously, research had highlighted a bullishness among Bitcoin and Ethereum options traders, as denoted by the prevalence of open interest calls, over puts, in both instances. Calls and puts refer to the buying and selling, respectively, of options. These derivative products give holders the right, but not the obligation, to buy or sell the underlying asset at some future point for a predetermined price. At that time, for Bitcoin, the range between $15,000 and $20,000 was favored due to the relatively even spread of calls and puts within this spread.
However, due to the recent bullish tone in the market, Bitcoin options traders have adjusted their outlook and are now eyeing a price of $30,000 by the end of March. This increased bullishness indicates confidence in the cryptocurrency’s price action over the coming months. It is yet to be seen whether this sentiment will hold, or if the market will take a turn for the worse.
