Analysts at QCP Capital, a digital asset trading and market making firm, reported in a July 3 broadcast that Bitcoin options traders are bullish on the recent sell-off. Bitcoin fell sharply below $58,000 on Thursday morning, however, options traders have held their ground, showing significant interest in buying call options at prices between $100,000 and $120,000.
BTC/USDT Daily Chart | Source: TradingView
Bitcoin Options Traders Expect BTC Price to Rise by Year-End
Options market trading data provides insight into the direction of asset prices and the state of the overall cryptocurrency market. Many analysts look at options data to understand the future price trends of assets.
Bitcoin options traders are bullish on BTC’s recent decline. On Thursday morning, July 4, Bitcoin fell below $58,000, wiping out gains from the last week of June. More than $82 million in Bitcoin long positions were liquidated, according to data from Coinglass. Despite the sell-off and correction, options traders remain steadfast.
QCP Capital has shared details of its interest in purchasing call options at prices between $100,000 and $120,000 by year-end.
The notice reads:
“Despite the sell-off, the options market remains heavily tilted to the upside, suggesting the market is still expecting a rally into year-end.”
Bitcoin traders are facing uncertainty from Mt.Gox creditors’ repayments this month and the German government’s BTC transactions.
Due to this uncertainty, analysts note that Bitcoin could underperform in Q3 2024.
Bitcoin was trading at $57,761 at the time of writing.
You can see coin prices here.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making any investment decisions. We are not responsible for your investment decisions.
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