- After the volatility following false reports of a Spot Bitcoin ETF approval, the BTC price has started to consolidate above the $28,000 level.
- Options market data shows increased confidence in longer-term Bitcoin price increases. Today, over 10,000 BTC block purchase options have been traded.
- BTC price has displayed strong stability lately after the surge at the beginning of the week. Bitcoin has firmly held above $28,000.
Bitcoin options data provides some insights into how the price might shape up in the coming days. What’s the current state of Bitcoin’s price?
What Do Bitcoin Options Data Indicate?
After the volatility following false reports of a Spot Bitcoin ETF approval, the BTC price has started to consolidate above the $28,000 level. There are concerns about macro developments on one side while optimism about the future of a Spot Bitcoin ETF exists on the other.
Furthermore, Bitcoin options data indicates increased confidence in longer-term price increases. Over 10,000 BTC block purchase options have been traded today. These transactions exceed a value of nearly $300 million and represent 40% of daily options activity. The dominant strategy, as shared by GreeksLive data, includes a cross spread involving selling a BTC-3NOV23-29000-C and buying a BTC-29DEC23-34000-C.
This spread is noteworthy because it involves short-term in-the-money (ATM) call selling using the premium received and long-term out-of-the-money (OTM) call purchasing. While it might not signify an immediate uptrend for Bitcoin in the short term, it clearly reflects an upward view of Bitcoin’s long-term expectations.
What Will Be the Next Steps for BTC Price?
The BTC price has shown strong stability lately after the earlier surge this week. Bitcoin has firmly held above $28,000, and optimism around the approval of the Spot Bitcoin ETF is growing.
Popular crypto analyst Michael van de Poppe noted that Bitcoin’s price is not moving strongly at the moment. He suggests that it would be better to have a consolidation period in this price range for a few days. There seems to be some liquidity that needs to be cleared on the long side for Bitcoin, and this could trigger a test in the $27,600 to $27,800 range. Key support areas are found at $27,700 and $27,300, indicating potential areas of interest for long positions.
A critical support area for Bitcoin emerged, ranging from $26,700 to $26,285, and it became a battleground where bulls and bears fiercely contested. Support levels in this area marked a pivotal turning point for the short-term direction of Bitcoin.
