Bitcoin (BTC) has achieved its first three-week winning streak since February, according to data from TradingView. This upswing has been marked by increased buying activity in call options, indicating a strong bullish sentiment with potential gains above $75,000.
In the week leading up to September 29, Bitcoin saw an over 3% rise, adding to the more than 7% increases recorded in each of the previous two weeks. The cryptocurrency’s upward momentum has been bolstered by significant stimulus announcements from China and substantial inflows into U.S.-listed spot ETFs, equating to more than a month’s worth of newly mined Bitcoin.
As prices climbed, substantial call buying activity emerged at the $75,000 strike price and beyond on the crypto exchange Deribit, according to order flow data from Amberdata. Investors have also been selling put options, which typically indicates a bullish outlook.
“This flow pattern suggests a bullish outlook for spot prices due to the put selling while also anticipating an acceleration in price movement,” noted Greg Magadini, Director of Derivatives at Amberdata, in a statement shared with CoinDesk.
A call option allows its holder the right, but not the obligation, to purchase Bitcoin at a predetermined price at a later date. Buyers of call options generally express bullish sentiment, while put buyers are typically bearish, aiming to hedge against potential price declines.
The current trend of increased call buying and put selling indicates expectations that Bitcoin prices may soon break out of a six-month corrective trend, which veteran analyst Peter Brandt refers to as the “expanding triangle.”
A breakout above the $75,000 mark could signal a resumption of the broader uptrend that began from October 2023 lows below $30,000. Magadini stated, “A break above $75K could lead to a swift rally toward all-time highs near $100K, where the last tranche of call buyer activity is concentrated for the December 27, 2024, expiration.”
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