- Bitcoin continues to inch closer to $31,000 unfazed by the current macro trends and strong bullish support.
- Below is the data of the Bitcoin call and put options and how the bulls are stretching their profits further.
The world’s largest cryptocurrency Bitcoin (BTC) has been on a roll this year in 2023 with year-to-date gains of more than 80%. Earlier this week, the BTC price surged past $30,000 with huge volumes and now it has formed the same level of strong support.
As of press time, Bitcoin (BTC) is trading 1.69% up at a price of $30,667 and a market cap of $593 billion. Furthermore, Bitcoin has also received a push from macro indicators as the lower-than-expected U.S. Consumer Price Index (CPI). The official inflation surge for the month of March 2023 was 5%, less than the expected 5.1%.
In addition to inflation, Bitcoin investors also paid close attention to the banking crisis that unfolded last month on Wall Street. At that time, Bitcoin showed great resilience and in fact, it managed to pull up a rally later on.
The 50% price rally by Bitcoin in the period between March 11 and April 11 shows its very strong resilience to FUD — fear, uncertainty and doubt. Bitcoin has managed to perform against all odds, may it be the banking crisis or macro concerns.
While the BTC price has already surprised investors with 80% gains this year, investors are curious as to what’s next for the cryptocurrency. Let’s take a look at the derivatives data to understand the Bitcoin price performance going ahead.
Bitcoin Derivatives Data
Although there’s a strong euphoria surrounding Bitcoin (BTC) currently, not everyone is cherishing the rally as of now. Some traders have also put bearish bets using Bitcoin options. The open interest for BTC options expiry on April 14 is $950 million, of which $460 million is in call (buy) options and $460 million in put (sell) options.
However, bears need to stay aware with less than 7% of their bets exceeding $29,000. Based on the current market conditions, below are the four most likely scenarios.
- For the BTC price range between $28,000 to $29,000, there are 2,600 calls vs. 1,800 puts and the net result remains balanced between calls and puts.
- For Bitcoin’s price between $29,000 and $30,000, there are 6,700 calls vs. 500 puts. The net result favors the calls (buys) by $110 million.
- For the BTC price between $30,000 and $30,500, there are 8,500 calls vs. 200 puts. Here the bulls increase the advantage by $250 million.
- For the Bitcoin price range between $30,500 and $31,500, there are 11,300 calls vs. 100 puts. This is where the bull’s advantage increases to $350 million.
These estimates consider call options in bullish bets while putting options in neutral to bearish bets. It will be interesting to see how the Bitcoin bulls catapult profits by Friday’s weekly expiry.
