Is Bitcoin Poised for a Breakout? $100K Call Options Signal Big Expectations
July 19 2024 - 10:30PM
NEWSBTC
While Bitcoin maintains its price above the $60,000 range, some
institutional investors are positioned for a positive price
trajectory with call options betting on up to $100,000 come
year-end. Despite recent pressures from substantial Bitcoin
liquidations by the Mt. Gox distribution and sales by the German
government, Bitcoin’s price remains notably resilient. These
developments indicate a strong appetite for big-money
cryptocurrency investments, especially from experienced investors
looking to profit off potential end-of-year rallies. Related
Reading: Bitcoin (BTC) Could Be On The Verge Of a 30% Gain, Here’s
Why $100,000 Call Options Signals This QCP Capital’s analysis
highlights this trend, pointing out the continued confidence among
institutions despite the German government’s injection of nearly
50,000 BTC into the market and the distribution of over $6 billion
worth of Bitcoin to Mt. Gox creditors. These events have
significantly increased the available supply of Bitcoin but have
surprisingly not dampened the bullish market sentiment. Instead,
they have catalyzed a strategic interest in December call options
at the $100,000 strike price, underscoring a strong institutional
belief in Bitcoin’s upward potential. This update signals that amid
the happenings in the crypto market; institutional traders are not
just passively observing but actively positioning themselves for
what they believe will be a significant uptick in Bitcoin’s value.
The focus on December $100,000 call options is more than
speculative; it reflects a calculated bet on Bitcoin’s performance
amid forthcoming market catalysts like the US elections. QCP
Capital noted: This signals an even stronger conviction of a
year-end rally as the odds of a Trump victory increases. Bitcoin
Stabilizes in Familiar Trading Range Furthermore, QCP Capital
revealed that with the perpetual funding rates stabilizing and
volatility tapering, Bitcoin appears to be settling into a
predictable trading range. This environment provides a relatively
stable backdrop for institutions to place substantial bets.
According to QCP Capital, large trades are centered around the
$67,000 strike options, suggesting market players anticipate moving
towards these levels before the month is out. This indicates that
while the year-end may be a focus, these institutional players also
see intermediate milestones. Related Reading: Watch Out Bears:
Bitcoin’s Rally To This Mark Could Trigger $19 Billion Short
Squeeze QCP Capital particularly noted: “Perp funding is back to
flat, vols are drifting lower and BTC is back in the familiar range
of 61k to 71k where it traded within for the entire of Q2 this
year. While spot could range here in the near term, especially with
dealers very long the 26-Jul 67k Strike, the market is definitely
betting big on a breakout heading into the US elections.”
Meanwhile, at the time of writing, Bitcoin still maintains its
price above the $64,000 mark. Over the past 24 hours, the asset has
surged by 2.6% to trade for $65,331 at the time of writing.
Featured image created with DALL-E, Chart from TradingView
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