Optimistic Bitcoin Traders Remain Bullish Despite Price Drop
Bitcoin Traders Optimistic
A positive sentiment is evident in the recent trading activity. Despite a 2% decrease in Bitcoin prices, which managed to remain above the crucial $30,000 mark, the majority of options traders are exhibiting bullish behavior, as indicated by the higher number of "calls" compared to "puts."
Typically, options provide traders with the right or obligation to buy or sell an underlying asset at an agreed-upon price before the expiry date. Traders primarily utilize options contracts to mitigate risks. The higher number of "calls" suggests that more Bitcoin traders hold an optimistic outlook, anticipating the cryptocurrency to surpass recent resistance levels.
Recent data reveals a decline in options trading volumes on Deribit. Following a peak of $3.29 billion on October 16, 2021, participation levels have gradually decreased over the past 20 months.
Trading activities remained subdued throughout 2022 due to the bear market, which witnessed Bitcoin's value dropping below $16,000 in November 2022. However, options trading volumes have been on the rise since then, reaching a peak of over $2.3 billion in March 2023. As of July 5, the trading volume has fallen below $1 billion.
Cover image from Canvas, chart from Tradingview
BTCUSD
BUY 30500 - 30800 💯💯
✅ TP1: 31200
✅ TP2: 31500
✅ TP3: 32000
🛑 SL: 30000
A positive sentiment is evident in the recent trading activity. Despite a 2% decrease in Bitcoin prices, which managed to remain above the crucial $30,000 mark, the majority of options traders are exhibiting bullish behavior, as indicated by the higher number of "calls" compared to "puts."
Typically, options provide traders with the right or obligation to buy or sell an underlying asset at an agreed-upon price before the expiry date. Traders primarily utilize options contracts to mitigate risks. The higher number of "calls" suggests that more Bitcoin traders hold an optimistic outlook, anticipating the cryptocurrency to surpass recent resistance levels.
Recent data reveals a decline in options trading volumes on Deribit. Following a peak of $3.29 billion on October 16, 2021, participation levels have gradually decreased over the past 20 months.
Trading activities remained subdued throughout 2022 due to the bear market, which witnessed Bitcoin's value dropping below $16,000 in November 2022. However, options trading volumes have been on the rise since then, reaching a peak of over $2.3 billion in March 2023. As of July 5, the trading volume has fallen below $1 billion.
Cover image from Canvas, chart from Tradingview
BTCUSD
BUY 30500 - 30800 💯💯 ✅ TP1: 31200
✅ TP2: 31500
✅ TP3: 32000
🛑 SL: 30000
