Bitcoin Options Hint at Bull Market
An explosive interest in Bitcoin options by large investors could mean the cryptocurrency is poised for a long-awaited bull run. Bitcoin is currently testing highs that it has not seen since the final months of 2017.
The open interest on Bitcoin options stands at $2.9 billion. This comes just five short days after the close of October option interest. Some $400 million was liquidated heading into the new option period.
The renewed interest in Bitcoin options has increased market optimism among investors who have been patiently waiting for a new Bitcoin bull market to be confirmed. $2.9 billion in open interest is a record for Bitcoin options since many cryptocurrency exchanges began to offer them.
There has been significant growth in the Bitcoin options market over the past six months. Interest has increased three times its previous numbers. Using a technical indicator known as a Delta Skew, market analysts believe that the new numbers paint a rosy picture for Bitcoin investors through the final months of 2020.
Why do Bitcoin options matter? Experts understand that options numbers reflect the interest and approach of big investors who have the ability to move the market. As a general rule, increase in option interest means that there are expectations for the market based on solid technical indicators.
Those indications all seem to be pointing toward a positive, bullish movement. This type of move is also supported by the price of Bitcoin breaching critical resistance levels throughout 2020. There have been pullbacks, but overall the momentum of the market continues to move upward.
Investors are still waiting for the continuation of the 2017 bull run which saw the value of Bitcoin move beyond $20,000. Some investors believe that an ultimate value of $100,000 for the crypto token is not an unreasonable expectation.