Bitcoin Option Traders: Which Direction Are They Heading? Latest Option Data!

• Bitcoin option traders have turned bullish, expecting Bitcoin to touch $50,000 by the end of January 2024.
• Current market activity reflects a similar level of activity observed at the end of 2020, it is said.
• In November, the total trading volume in spot and derivatives on central exchanges reached $3.61 trillion, marking a significant increase of 40.7%, according to CCData researcher.

Which direction are Bitcoin option traders heading? Here are the latest option data and expert comments on the Bitcoin price!

What Do Bitcoin Option Data Indicate?

Amid Bitcoin reaching $44,000 in its recent price rally, Bitcoin option traders have turned bullish, expecting Bitcoin to touch $50,000 by the end of January 2024. Traders are pinning their hopes on the approval of the ETF in the first ten days of 2024.

Option traders platform Greeks Live reports fluctuations in BTC’s December option share. While the share exceeded 50% last week, the recent market movement caused it to fall back below that level. This dynamic is attributed to a significant increase in short-term option positions driven by short-term market trends.

Additionally, traders expressing bullish views on the ETF prefer January options. Current market activity reflects a similar level of activity observed at the end of 2020. Bitcoin has seen an increase of over 60% since mid-October, especially fueled by speculation around the potential approval of BlackRock’s ETF applications, a major asset management player. As of Wednesday, Bitcoin was relatively stable around $44,000.

In November, the total trading volume in spot and derivatives on central exchanges reached $3.61 trillion, marking a significant increase of 40.7%, according to CCData researcher. This cumulative total represents the highest level recorded since March.

Derivative trading involving options and futures continues to play a significant role in the cryptocurrency market. When it comes to cash-settled options and futures, traders gain flexibility in implementing strategies without dealing with specific challenges related to private cryptocurrencies.

Is BTC Price Heading for New Highs?

The BTC price is currently trading at levels unseen since December 2021. Now, with the excitement surrounding the potential approval of the first spot Bitcoin ETF, the market continues its bullish trend. This could also lead to higher BTC price volatility in the future.

With the potential arrival of the Bitcoin ETF and a resurgence of risk appetite in the overall financial markets, traders are expecting increased interest in the cryptocurrency space. Greg Magadini, Director of Derivatives at Amberdata, stated, “We’ve seen this year that as BTC goes up, volatility follows. Therefore, a sustainable bull market could bring more volatility in the short and medium term.”

Crypto analyst Ali Martinez identified a stable support level for Bitcoin at $42,700, stating that at this level, 642,000 wallets hold 347,000 BTC. She also added, “In the case of an ongoing bullish trend, there is potential for a push towards the next significant supply zone at $47,300. At this level, 614,000 wallets hold 427,000 BTC. On the other hand, if the $42,700 support level is breached, attention will turn to the next critical area to watch, which is $38,000.”