Bitcoin Options Are Gaining Traction Again: How Might This Affect The Price Of BTC?
The crypto market has perked up noticeably, as evidenced by the growth of open interest in Bitcoin options. Will the bulls can take advantage of this chance, or is it inevitable that the BTC price will roll back below $10,000?
Open interest in Bitcoin options rises
This trading week turned out to be a test for Bitcoin’s stability and its willingness to continue the upward trend. The success of the flagship cryptocurrency turned out to be variable: yesterday, Bitcoin reached a top of $11,093, but in the last 24 hours its price fell by 2.2%. As of today, Bitcoin is trading at $10,860.
The fluctuation in the price of Bitcoin is closely related to the approaching shortening of the expiration date of Bitcoin options. On the last Friday of September, 770,000 options contracts will be closed. The decision that the holders of call and put contracts will make is likely to determine the trajectory of Bitcoin in October.
The Deribit exchange this week was intrigued by the news of rising open interest in Bitcoin options. Some analysts are wary about the return of capital to the flagship cryptocurrency. According to the stock exchange, about 134,000 open contracts have already been concluded.
Given the growing open interest in options, analysts are envisioning a surge in volatility for the flagship cryptocurrency in October. It is difficult to determine whether this will be a serious rollback or, on the contrary, the price reaches new highs. Nevertheless, analysts are optimistic because today Bitcoin repeats the scenario of 2017 when after the second halving the price of the asset soared to almost $20,000.
If Bitcoin follows the path of 2017, the third halving will still boomerang on the crypto market in the form of a parabolic rise in the price of BTC. Traders expect Bitcoin’s price to hit an extremely high 15 months after the halving, by mid-2021.
Deribit experts noted:
What are traders predicting?
Analyzing the market behavior of Bitcoin, traders are divided into two camps. The only thing that unites them is caution in forecasts and announced figures because technical charts show ambiguous data that can be interpreted from both bearish and bullish sides.
Some analysts point out that if there is pressure from buyers, Bitcoin could continue the uptrend or at least return to the $11,100 level. They also provide for the ability to roll back the price of Bitcoin back to further accelerate forward.
Edward Morra, a bitcoin trader, is less optimistic and has made bearish predictions:
Thus, Bitcoin in the short term may be in the consolidation phase from $9,000 to $12,000, its further trajectory depends on the results of the closing of the next trading sessions.